Project industry sales for children\'s software through 2015 based on the inform
ID: 2419407 • Letter: P
Question
Project industry sales for children's software through 2015 based on the information provided above. Calculate the year-to-year annual sales growth rates for LearnRite. [Optional: Estimate the compound growth tale over the 2014-2018 time period using a financial calculator or computer software program.] Estimate LearnRite's expected market share in each year based on the given data. Estimate the firm's net income (loss) in each of the five years. Estimate the firm's ROA beginning when the net or after-tax income is expected to be positive. Score LearnRite's venture investor attractiveness in terms of the industry/market factor category using the VOS Indicator guide and criteria set out in Figures 2.8 and 29. If you believe there are insufficient data, indicate that decision with an N/A. Score LearnRite's venture investor attractiveness in terms of pricing/profitability factors Follow the instructions in Part F. Score LearnRite's venture investor attractiveness in terms of financial/harvest factors Follow the instructions in Part F. Score LearnRite's venture investor attractiveness in terms of management team factors Follow the instructions in Part F. Determine overall total points and an average score for LearnRite as was done for the Companion Systems Corporation in the Appendix Items where information is judged to be lacking and an N/A is used should be excluded when calculating an average score. Provide a brief written summary indicating how you feel about LearnRite.com as a business opportunity.Explanation / Answer
a)
As per the case histoory, total sales in 2015 is estimated to be $ 9,6 million.
b)
Since revenues are increasing, LearnRite is captuting Market Share
c)
d)
e)
Asset Turnover Ratio = 2
Sales/Total Assets =2
Total Assets = sales/2
ROA = Net Income / Total Assets
f)
Market for children eductional toys market is 35% and the company's share is increasing every year.
Moreover, company net profit's are also increasing yearly. As an investor, these factors attract to invest more in the company.
g)
Since figures 2.8 and 2.9 mentioned in the question are not given here. But still in available information, investment in LearnRite is a very good opprtunity as it is a new segment which has the large market and the profpormance to the company is getting hotter every year.
Moreover, company has appointed qualified and experienced staff which are available to reciprocate according to market conditions.
Year Revenues Growth Growth Rate 2014 1 2015 9.6 8.6 860% 2016 30.1 20.5 214% 2017 67.8 37.7 125% 2018 121.4 53.6 79%Related Questions
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