Quiz Ch 5

Thao Luong

ITM3060

04/17/14

1. What are Dirt Bikes’ best- and worst-performing products?

Dirt Bikes USA sells 4 types of motorcycle: the Enduro 250, the Enduro 550, the Moto 300 and the Moto 450. From the year 2001 through the year 2005, the best overall performer in sales has been the Enduro 550, with total sales of $17.6 million for the five year period. The worst performer over the same period has been the Moto 450, with just $3.3 million in sales.

2. What is the proportion of domestic to international sales?

For the five year period, the percentage of international to domestic sales is 8.9%

3. Have international sales grown relative to domestic sales?

International sales were growing, relative to domestic sales. They saw the peak in 2003 at 9.9% and have been trending downward since that point. They are currently at their lowest point over the entire reporting period, at 8.2%.

4. Are sales (revenues) growing steadily, and, if so, at what rate?

The sales growth peaked in 2004 and declined by about 4.9% in 2005

5. What is the cost of goods sold compared to revenues?

The sales revenue is larger than the cost of goods sold for the years 2003-2005, but by a shrinking amount each year

6. Is it increasing or decreasing?

It is increasing

7. Are the firm’s gross and net margins increasing or decreasing?

The company’s gross and net margins are both shrinking over this time period

8. Are the firm’s operating expenses increasing or decreasing?

The operating expenses are increasing over the period

9. Is the firm heavily in debt?

The percentage of total assets to total liabilities lies within a 2 percent range for the period, from 54.53% - 56.16%, and the ratio of long term debt to total assets is fairly steady in the range of 6.66 – 6.70, so the company couldn’t be said to be heavily in debt

10. Does it have assets to pay for expenses and to finance the development of new products and information systems?

The amount...