incremental net cash flow divided B u s i n e s s F i n a n c e

incremental net cash flow divided B u s i n e s s F i n a n c e

Prepare a case analysis for 2 of the 3 cases below. Use the questions related to your chosen cases as a
guide in preparing your case analysis. Your analysis should be no longer than 3 pages, typed, and double
space. Exhibits do not form part of the page count.

Cool Moose Creamery Assignment Questions:
1. Identify one of each of the business’ strengths, weaknesses, opportunities and threats.

2. Analyze the addition of the soft-serve ice cream from a qualitative standpoint.

3. Which of the cash flows associated with the opportunity are relevant? Of these, which are reoccurring
costs versus one-time costs?

4. Prepare a differential analysis to determine the return on investment for the purchase of both the
single-head ad triple-head machines.

5. As Greig Perantinos, would you purchase a soft-serve ice cream machine? If so, which one?


Textbooks for Change Assignment Questions:

1. Identify one of each of the business’ strengths, weaknesses, opportunities and threats.

2. Qualitatively, what are the pros and cons of expanding into Easter Ontario, specifically with Queen’s,
Carleton, and uOttawa?

3. Identify the fixed and variable costs relevant to an expansion.

4. Calculate how many textbooks T4C would need to collect to break even at each of the three
universities: Queen’s, Carleton, and uOttawa.

5. As Chris Janssen, what would you doSugar and Spice

Perform a business size-up of Sugar and Spice Bakery by completing the following:
1. Analyze the expansion opportunities of closing the storefront to cater events from a qualitative
strategic perspective.

2. Using the excel template file, identify which of the cash flows associated with the opportunity
are relevant. If the cash flow item is relevant, identify if the item is recurring or a one-time cash
flow.

3. Prepare a 1 year differential analysis for both the low and high sales projections to determine
return on investment for closing the store. (Hint: if the cash flow item is relevant and recurring,
it should be included in your analysis to determine incremental net cash flow. ROI would be your
incremental net cash flow divided by your total of one-time cash flow items.)

4. Would you recommend to close the store? Explain.