Subject: Business / Management
1.) Project UMUC is to produce 200 widgets and is scheduled to take five weeks. Each unit is planned to cost $90. The project is severely cost constrained. Performance data for the project at the end of week three is presented below:
120 total units were planned to be produced
130 units have actually been produced
The financial manager reported that the business had actually spent $13,000 on the project by the end of week three.
Please answer the following questions
Quantify cost variance. Is the project ahead or behind budget?
Quantify schedule variance. Is the project ahead or behind schedule?
Quantify cost performance efficiency. Is the project performing better or worse than planned?
Quantify schedule performance efficiency. Is the project performing better or worse than planned?
What is the forecast of project cost at completion assuming current cost performance efficiency remains the same? How much budget variance is expected at completion?
What is the forecast of funding needed to complete the project (from this point forward)?
What cost performance efficiency would be required for the remainder of the project to complete the project within the original budget?
As the project financial manager, what recommendations would you make
2.) This question is based on the information provided in the abbreviated year-end Income Statement and abbreviated year-end Balance Sheet for NMC Corporation shown below.
NMC Corporation Income Statement for the Calendar Year (January 1 – December 31)
Thousands of dollars (except stock price, earnings per share, and dividends per share)
Cost and expenses:
Less interest expense:
Earnings before taxes
Net income before preferred dividends
Dividends to preferred stockholders
Net income available to common stock holders
Per share common stock:
Earnings per share
Dividends per share
NMC Corporation Balance Sheet (Average of beginning and end of year)
Assets (thousands of dollars)
Liabilities and Equity (thousands of dollars)
Total Current Assets:
Total Current Liabilities:
Net plant and equipment:
Total Long Term Debt:
Total Stock Holder’s Equity:
Total liabilities and equity:
8a. Calculate the NMC financial ratios contained in the following table
Quick (Acid) Ratio
Total Debt to Total Assets
Return on Assets (ROA)
8b. Compare your results to the industry ratios and describe what NMC should do to improve its position in the market.