Average Collection Period

Question 1

Carson Electronics’ management has long viewed BGT Electronics as an industry leader and uses this firm as a model firm for analyzing its own performance. The balance sheets and income statements for the two firms are found here:

a. Calculate the following ratios for both Carson and BGT:

Current ratioTimes interest earnedInventory turnoverTotal asset turnoverOperating profit margin

Operating return on assetsDebt ratioAverage collection periodFixed asset turnoverReturn on equity

b. Analyze the differences you observe between the two firms. Comment on what you view as weaknesses in the performance of Carson as compared to BGT that Carson’s management might focus on to improve its operations.

a. Calculate the following ratios for both Carson and BGT:

Carson’s current ratio is ___. (Round to two decimal places.)

Question 2

Assume you own a professional sports organization and want to build a brand new $400 million stadium. Write a paper explaining how you will determine the location and amenities for the stadium. What sources of funding/sponsors will you seek for building the new stadium? What are the on-going revenue generators for the stadium? Describe two ways of getting the city involved and how you plan on supporting each other. Discuss how revenue will be shared amongst investors, team, city, etc.

The paper

• Must be at least four double-spaced pages in length (not including title and references pages) and formatted according to APA style.
• Must include a separate title page with the following:
  • Title of paper
  • Student’s name
  • Course name and number
  • Instructor’s name
  • Date submitted
• Must use at least two scholarly sources in addition to the course text. References
• Fried, G., DeSchriver, T. D., & Mondello, M. (2013). Sports finance (3rd ed.). Human Kinetics. ISBN: 9781450421041
• Must document all sources in APA style