you will write the article by answer these question.
1. Forecast the financial statements for the Polymold Division with and without the CAD/CAM purchase.
a. What differences do you find in the income statements as a result of the purchase? What causes those changes?
b. What differences do you find in the balance sheets as a result of the purchase? What causes those differences?
2. If you were deciding whether or not to purchase CAD/CAM, what financial statement information would you consider? What other information would you take into
account?
3. Should the Polymold Division be allowed to purchase the CAD/CAM?
case and instruction, The name of case is “Polymold Division ” The case is a PDF Doc from page 11 to 28.
you will write the article by answer these question.
1. Forecast the financial statements for the Polymold Division with and without the CAD/CAM purchase.
a. What differences do you find in the income statements as a result of the purchase? What causes those changes?
b. What differences do you find in the balance sheets as a result of the purchase? What causes those differences?
2. If you were deciding whether or not to purchase CAD/CAM, what financial statement information would you consider? What other information would you take into
account?
3. Should the Polymold Division be allowed to purchase the CAD/CAM?
Do not submit TextEdit or PDF files.
Do not cut and paste your essay into the submission field.
DUE: 9:00AM, 28 OCT (WEEK 8). Submit on Blackboard.
GRADE: 25% of your final Grade
Fantastic Manufacturing, Inc. C 3,5 e
I]
In late October 1980, David Rose and Pierce Turner, principals of Fantas-
tic Manufacturing, Inc. were preparing forecasts for their rapidly growing
business assembling and marketing ceiling fans. A product many had
thought of as a fad, ceiling fans had instead been accepted by consumers as
energy conservers, and new-home builders and homeowners were install-
ing them in record numbers.
Fantastic Manufacturing was incorporated in late 1976 by Mr. Rose
7 and Mr. Turner in Charleston. South Carolina. Mr. Rose had his own
manufacturers’ representative, Rose Sales, Inc.. with annual sales of
approximately $40 million to accounts around the world. He specialized in
sales of building materials to mass-merchandisers.
In 1976 Mr. Rose had found many of his accounts interested in ceil-
ing fans, and at the end of that year, he approached Mr. Turner, 2 tax
attorney by training and head of his own manufacturing company, to dis-
cuss the possibility ofimporting and assembling ceiling fans. Agreeing with
the idea. Mr. Turner accompanied Mr. Rose to Taiwan and Hong Kong to
find parts suppliers for a new, low-priced, assemble-it-yourself fan. The
men took their Specifications to all the fan factories they could find in
Taiwan and Hong Kong and selected exclusive suppliers.
V Fantastic’s first order for fans was placed in September 1977 and
arrived in late November. After assembly, the fans were shipped to ens-
tomers in December. By the end of the first fiscal year, which ended lanu-
ary 31, 1978, total sales were approximately $230,000.
v Fantastic had begun operations by emphasizing sales of low-priced
fans to the do-it-yourseif market, selling largely through small stores. lni-
tialiy, Mr. Rose and Mr. Turner had viewed the product as appealing to
nostalgia, and they expected limited growth potential. The initial objective
of the business was to get the product on the shelf, and the company
encouraged retailers to advertise heavily. Many stores used the product
initially as a faddish draw.
This case was prepared as a basis for class discussion rather than to illustrate either effective
or ineffective handling oFan administrative situation. Copyright © I988 by the University of
Virginia Darden School Foundation. Charlotteswlle. Virginia. All rights reserved.
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