Question

Using a spreadsheet computer software program, construct a supply chain finance model and calculate the profit margin; ROA; inventory turns, and transportation, warehousing, and inventory costs as a percentage of revenue for the following:

Sales $200,000,000

Answer 1

To construct a supply chain finance model and calculate the profit margin, ROA, inventory turns, and transportation, warehousing, and inventory costs as a percentage of revenue using a spreadsheet software program, follow these steps.

Step-by-step explanation:

To construct a supply chain finance model and calculate the profit margin, ROA, inventory turns, and transportation, warehousing, and inventory costs as a percentage of revenue in a spreadsheet computer software program, you will need to input the relevant data and use appropriate formulas and functions. Here is a step-by-step guide:

1. Input the sales revenue of $200,000,000.
2. Calculate the profit margin by subtracting all costs associated with producing and selling the product from the revenue. Divide the resulting profit by the revenue and multiply by 100 to get the percentage.
3. To calculate the return on assets (ROA), divide the accounting profit (revenue minus explicit costs) by the total assets and multiply by 100 to get the percentage.
4. To calculate inventory turns, divide the cost of goods sold by the average inventory value.
5. Calculate the transportation, warehousing, and inventory costs as a percentage of revenue by dividing the total costs by the revenue and multiplying by 100.