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chap3_financial_2011.ppt
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Case 3-1 Brant Freezer Co.

  • Located in Fargo, N. Dakota

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Company Facts:

  • Industrial freezers (one size)

Product Facts:

Market Facts:

  • Distributed through public warehouses in Atlanta, Boston, Chicago, Denver, Los Angels, Portland, and St. Louis
  • Fargo warehouse

Case 3-1 Brant Freezer Co.

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* Denver warehouse closed by strike march 4-19, 2009

2009
Units Shipped Warehouse Costs
12 mo. 5 mo. 12 mo. 5 mo.
Atlanta 17,431 4,080 $156,830 $35,890
Boston 6,920 3,061 $63,417 $27,915
Chicago 28,104 14,621 $246,315 $131,618
Denver 3,021 1,005* $28,019 $8,600*
Fargo 2,016 980 $16,411 $8,883
LA 16,491 11,431 $151,975 $109,690
Portland 8,333 4,028 $73,015 $36,021
St. Louis 5,921 2,331 $51,819 $23,232

Case 3-1 Brant Freezer Co.

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2,010
Units Shipped Warehouse Costs
12 mo. 5 mo. 12 mo. 5 mo.
Atlanta 18,000 7,035 $178,000 $40,228
Boston 7,200 3,119 $7,300 $29,416
Chicago 30,000 15,230 $285,000 $141,222
Denver 3,100 1,421 $31,000 $14,900
Fargo 2,000 804 $17,000 $9,605
LA 17,000 9,444 $176,000 $93,280
Portland 9,000 4,600 $85,000 $42,616
St. Louis 8,000 2,116 $56,000 $19,191

Case 3-1 Brant Freezer Co.

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Income Statement 2009
Sales $ 4,003,450
Cost of Goods Sold $ 937,000
Gross Profit Margin $ 3,066,450
Transportation Cost $ 657,322
Warehousing Cost $ 735,982
Inventory Carrying Cost $ 567,987
Other Operating Costs $ 345,876
Total Operation Costs $ 2,307,167  
Earnings before interest and taxes $ 759,283
Interest $ 110,000
Taxes $ 69,000
Ne Income $ 580,283

Case 3-1 Brant Freezer Co.

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Balance Sheet 2009
Assets Liabilities
Cash $706,034 Current Liabilities $1,678,589
Accounts Receivable $355,450 Long-term Debt $398,060
Inventory $1,590,435 Total Liabilities $2,076,649
Total Current Assets $2,651,919 Shareholders' Equity $1,378,326
Net Fixed Assets $803,056 Total Liabilities and Equity $3,454,975
Total Assets $3,454,975