100% Original, Plagiarism Free, Tailored to your instructions

Order Now!

Comic Book Case Study- Part #2

Assignment Requirements
This is the 2nd part to the assignment you had previously done for me. However this is the financial part of it. I will be uploading all the same files that you need again, and I need you to look into accounting resources to evaluate the Income statement etc.
you will have to draw conclusions based on the data i provide you – ex. profitability of the company for current and future. Know about balance sheet and be able t analyze it.
This paper actually needs to be 10 + pages so i just put thirteen however pages not including charts and tables.
This should be business format so headings and sub headings – no essay
point for where appropriate.
Also if you can find the book for the course which is New venture startup- by Justin G Longnecker
i will also provide you the power points from the chapters that we need to know information for this second part of the case study.
ENT 500
Case – The Comic Book Store Decision
Jamie Wong grew up in Belleville, Ontario. When he was 12 years old, he bought his first comic book. It was a Superman comic book, and from this purchase he fell in love with comic books, with the artwork and with the stories. By the time he was finishing high school, he was an avid collector, and most of his bedroom was taken up by his collection. He was spurred on by the news that the first Superman comic book sold for over $1 million. He attended comic book conventions and socialized with serious collectors like himself.
Jamie saw his future on the 20th episode of The Big Bang Theory, “The Hofstadter Isotope,” when Stuart Bloom was introduced as a character who owned the Comic Book Center of Pasadena. Jamie loved the comic book store portrayed and could think of nothing more satisfying than owning a comic book store. He remembered a quote from Hemingway he had studied in English class, “Find a hobby and make it your livelihood.”
Jamie’s parents wanted him to go to university, so he enrolled at Queen’s University in Kingston, Ontario to major in English. He used his comic book background to write essays such as, “Comic Book Heroes,” “The Superhero in Movies,” and “The Comic Book Transition to the Dark Side.” He still collected comic books and they now took up a full room in a house he shared with several other students in the “student ghetto” in Kingston.
When Jamie graduated, he decided to get into the comic book business. His parents had given him $10,000 as a graduation gift, so he had a small nest egg to invest. He had become friends with a comic book store owner in Kingston who wanted to move to Toronto to open a larger store. His store was located on Princess Street near Clergy, within walking distance of Queen’s. He offered Jamie a deal: Take over the lease and buy the inventory (approximately $20,000) and the store was his. The rent was $1000 per month. Jamie knew the store and its customers since he had worked there part-time during university.
Jamie talked to his parents and they offered to guarantee a loan at the bank for $25,000. Jamie would also have to take over a bank loan of $5000 from the current owner. The owner had given Jamie his Income Statement for 2012 (the latest available), and the Balance Sheet for 2011 and 2012 (Tables 1 and 2). Jamie had also found the financial ratios for comic book stores online (Table 3).
Your assignment is to evaluate the situation based on the market opportunity and the financials. Answer the questions on the Comic Book Store Case, Part 1 and Part 2, assignment sheet. Please view Stuart’s comic book store on “The Big Bang Theory,” either online or on television.
Table 1
Comic Book Store Balance Sheet, December 31, 2011 – December 31, 2012
($ thousands)
2011                                       2012
Current assets:
Cash                                                                      $   8                                       $   10
Accounts receivable                                          15                                            20
Inventory                                                               22                                            25
____                                     ____
Total current assets                                        $ 45                                       $ 55
Fixed Assets:
Store fixtures                                                    $ 50                                       $ 55
Accumulated depreciation                              15                                          20
____                                     ____
Net fixed assets                                               $ 35                                       $ 35
Other assets                                                         12                                          10
____                                     ____
TOTAL ASSETS                                   $ 92                                       $100
Debt (Liabilities) and Equity
Current liability
Accounts payable                                            $ 17                                       $ 20
Bank loan (operating)                                         5                                             5
Total current liabilities                    $   22                                      $ 25
Long term liabilities (bank loan)                      15                                         15
____                                     ____
Total liabilities                                                    $   37                                      $ 40
Total stockholders’ equity                                                 55                                         60
____                                     ____
TOTAL DEBT AND EQUITY                             $   92                                      $100
Table 2
Comic Book Store Income Statement for the year ended December 31, 2012
($ thousands)
Sales revenue                                                                                                   $175
Cost of goods sold                                                                                          105
Gross profit on sales                                                                                       $ 70
Operating expenses:
Marketing expenses                                                                      $ 26
General and administrative expenses and rent     20
Depreciation                                                                                           5
Total operating expenses                                                             $ 51
Operating income                                                                                            $ 19
Interest expense                                                                                                  1
Earnings before taxes                                                                                    $ 18
Net income before taxes                                                                             $ 18
Table 3
Financial Ratios                                                                 Industry Norms
Current ratio                                                                                                      2.50
Acid-test ratio                                                                                                   1.50
Average collection period                                                                       5.00
Inventory turnover                                                                                         6.00
Debt-equity ratio                                                                                             1.00
Operating income return on investment                                          16.0%
Operating profit margin                                                                                8.0%
Total asset turnover                                                                                       2.00
Fixed asset turnover                                                                                      7.00
Times interest earned ratio                                                                         5.00
Return on equity                                                                                              14.0%
Order Now

Our Service Charter

  1. Excellent Quality / 100% Plagiarism-Free

    We employ a number of measures to ensure top quality essays. The papers go through a system of quality control prior to delivery. We run plagiarism checks on each paper to ensure that they will be 100% plagiarism-free. So, only clean copies hit customers’ emails. We also never resell the papers completed by our writers. So, once it is checked using a plagiarism checker, the paper will be unique. Speaking of the academic writing standards, we will stick to the assignment brief given by the customer and assign the perfect writer. By saying “the perfect writer” we mean the one having an academic degree in the customer’s study field and positive feedback from other customers.
  2. Free Revisions

    We keep the quality bar of all papers high. But in case you need some extra brilliance to the paper, here’s what to do. First of all, you can choose a top writer. It means that we will assign an expert with a degree in your subject. And secondly, you can rely on our editing services. Our editors will revise your papers, checking whether or not they comply with high standards of academic writing. In addition, editing entails adjusting content if it’s off the topic, adding more sources, refining the language style, and making sure the referencing style is followed.
  3. Confidentiality / 100% No Disclosure

    We make sure that clients’ personal data remains confidential and is not exploited for any purposes beyond those related to our services. We only ask you to provide us with the information that is required to produce the paper according to your writing needs. Please note that the payment info is protected as well. Feel free to refer to the support team for more information about our payment methods. The fact that you used our service is kept secret due to the advanced security standards. So, you can be sure that no one will find out that you got a paper from our writing service.
  4. Money Back Guarantee

    If the writer doesn’t address all the questions on your assignment brief or the delivered paper appears to be off the topic, you can ask for a refund. Or, if it is applicable, you can opt in for free revision within 14-30 days, depending on your paper’s length. The revision or refund request should be sent within 14 days after delivery. The customer gets 100% money-back in case they haven't downloaded the paper. All approved refunds will be returned to the customer’s credit card or Bonus Balance in a form of store credit. Take a note that we will send an extra compensation if the customers goes with a store credit.
  5. 24/7 Customer Support

    We have a support team working 24/7 ready to give your issue concerning the order their immediate attention. If you have any questions about the ordering process, communication with the writer, payment options, feel free to join live chat. Be sure to get a fast response. They can also give you the exact price quote, taking into account the timing, desired academic level of the paper, and the number of pages.

Excellent Quality
Zero Plagiarism
Expert Writers

Instant Quote

Single spaced
approx 275 words per page
Urgency (Less urgent, less costly):
Total Cost: NaN

Get 10% Off on your 1st order!