Competition Bikes Inc. | Case Studies

Case I:

Introduction:

In this task you will use the "Competition Bikes Inc. Storyline" case study to prepare a summary report based on your evaluation of the company's operations.

Task:
 A. Prepare a summary report in which you do the following:

1.  Evaluate the company's operational strengths and weaknesses based on the following:

a. Horizontal analysis results

b. Vertical analysis results

c. Trend analysis results

d. Ratio analysis results

2.  Analyze the working capital of Competition Bikes Inc. Consider the following in your analysis:

• Ways to improve the working capital

• Ways to use excess working capital to generate an increase in profits

3.  Evaluate the internal controls for the Competition Bikes Inc. purchasing system.

a. Recommend corrective actions for any weaknesses.

b. Identify the risks to the company.

i. Discuss how to mitigate the risks arising from internal control weaknesses.

4.  Analyze compliance with Sarbanes–Oxley requirements.

a. Recommend corrective actions for noncompliant areas.

 

B.  If you use sources, include all in-text citations and references in APA format.

Case 2:

Introduction: 

In this task, you will use the attached "Competition Bikes Inc. Storyline" to review various budgets and budget planning for the company and provide your analysis and recommendations.

Task:
A.  Prepare a summary report in which you do the following:

1.  Discuss budgetary items that raise concern in the budget planning.

2.  Evaluate the flexible budget and its variances.

a.  Recommend corrective actions for areas of concern based on a variance analysis.

b. Discuss how the concept of management by exception could be applied to the variances.
 

B.  If you use sources, include all in-text citations and references in APA format.

Case 3:

Introduction:

Competition Bikes Inc. is considering an expansion to Canada and is trying to determine whether to merge with or acquire the Canadian Biking Inc. facility. Part of the consideration in the decision to merge with Canadian Biking, Inc. or to acquire Canadian Biking is the source and management of the working capital for the operation. In this task, you will prepare a summary report that analyzes the proposed expansion.

Task:

A.  Prepare a summary report in which you do the following:

1.  Recommend a capital structure approach that maximizes shareholder return.

a. Justify your recommendation.

2.  Discuss capital budget areas that raise concern.

3.  Discuss how working capital can be properly obtained and managed for the Canadian expansion.

4.  Discuss whether Competition Bikes Inc. should merge with or acquire the Canadian Biking Inc. facility.

 

B.  If you use sources, include all in-text citations and references in APA format.

Case 4:

Introduction:
Competition Bikes Inc. has retooled and is making both the CarbonLite and the Titanium frame bikes. The company vice president directed that a cost study be conducted, and an activity-based costing analysis was undertaken in one of the company plants. After the study, a breakeven analysis was completed along with target profit projections.

Task:
A.  Prepare a summary report to the vice president of the company in which you do the following:

1.  Recommend whether the company should change its costing method to activity-based costing.

2.  Based on an evaluation of cost-volume-profit, do the following:

a. Analyze the breakeven point for Competition Bikes Inc. with regard to sales units and sales dollars for both CarbonLite and Titanium bikes.

b. Prepare a summary report that describes the impacts to the breakeven point if company management needed to increase the cost of direct materials by 10% cost increase and needed to add $50,000 in fixed costs to the production facility.
 

B.  If you use sources, include all in-text citations and references in APA format.

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