Team D Stealth Applied Resources Busn 460

CanGo Inc. Strategic Actionable Recommendations

Stealth Applied Resources

Team D

DeVry University

October 17, 2010

BUSN 460 - Senior Project

Instructor: Donna Pearson

Team D:

Darwin Quintuna

Michael Stroud

Pakuechi Her

Rick Schweitzer

Rochelly Rodriguez


CanGo Inc. Strategic Actionable Recommendations 2

Contents

EXECUTIVE SUMMARY................................................................................................................................ 3

SWOT ANALYSIS............................................................................................................................................ 4

STRENGTHS..............................................................................................................................................................4WEAKNESSES...........................................................................................................................................................5OPPORTUNITIES........................................................................................................................................................6THREATS..................................................................................................................................................................7

MARKET ANALYSIS...................................................................................................................................... 8

ONLINE SHOPPING SECTOR......................................................................................................................................8ONLINE GAMING SECTOR......................................................................................................................................11

COMPETITIVE ANALYSIS.......................................................................................................................... 16

FINANCIAL ANALYSIS................................................................................................................................ 20

SUMMARY..............................................................................................................................................................20BALANCE SHEET SUGGESTIONS.............................................................................................................................21INCOME STATEMENT SUGGESTIONS.......................................................................................................................23ANALYSIS RATIOS - AND WHAT THEY MEAN TO CANGO.......................................................................................24PROFITABILITY RATIOS..........................................................................................................................................24LIQUIDITY RATIOS.................................................................................................................................................30ACTIVITY RATIOS..................................................................................................................................................32LEVERAGE RATIOS.................................................................................................................................................35

STRATEGIC RECOMMENDATIONS.......................................................................................................... 37

CONCLUSION................................................................................................................................................ 39

REFERENCES................................................................................................................................................ 40

APPENDIX A.................................................................................................................................................. 43

APPENDIX B.................................................................................................................................................. 44

APPENDIX C.................................................................................................................................................. 51



Executive SummaryThe strategic decisions that Stealth Applied Resources is recommending for CanGo Inc.

are based on the observations our team made of your organization during many visits and from

the financial statements that have been provided as well input from CanGo management team

and staff. The S.W.O.T. analysis revealed the strengths that CanGo can benefit from, as well as

concerns and potential weaknesses that can hinder their profit margin and corporate growth.

CanGo could depend on their strength of double digit profit margin, great customer service,

and its strong financial position and liquidity. But any weakness that is uncovered in any of

these areas can cause a drop off of profit margin and diminish customer service. All of these

can be disastrous.

The CanGo management team seems although very solid, seems to have no definite cohesive

strategic direction. Management style is somewhat fragmented.

Stealth Applied Resources has composed strategic recommendations that can be very beneficial

for CanGo Inc. The recommendations suggest taking on each individual issue of concern in

order to see an overall result. The main objective here is to see a growth within the

organization at a corporate level and gain market share and increase finances. Stealth Applied

Resources strategic plan recommends to start with implementations to correct assist in

increasing management cohesiveness , update the webpage, implement bar coding packing

system, and take on other product and markets such as online gaming. This in turn will offer

the potential to grow financially with opportunity for larger investment capital.



SWOT Analysis

StrengthsCanGo has been able to sustain revenue growth, enjoy a superb net profit margin of 11%,

and offer excellent customer service. This is all despite not having a complete understanding of

their position in the market or having a solid marketing strategy. The fact that they have risen

quite rapidly speaks volumes about their outrageous customer service, product offerings, and

expedient internal processes.

Their balance sheet is not without flaw, but it shows a strong bottom line.

Balance Sheet

ASSETS 31-Dec-09

Cash $20,900,000

Marketable Securities $117,000,000

Accounts Receivable $33,000,000

Less: Allowance for Bad Debts ($880,000)

Net Accounts Receivable $32,120,000

Inventory

Raw Materials $2,000,000

Work-in-process $1,000,000

Finished Goods $5,000,000

Inventory Purchased for Resale $24,000,000

Total Inventory $32,000,000

Plant, Property and Equipment $6,700,000

Less: Accumulated Depreciation ($320,000)

Net Plant, Property and Equipment $6,380,000

Prepaid Expenses $200,000

Goodwill and Other Purchased Intangibles $28,000,000

Less: Amortization ($700,000)

Net Goodwill and Other Purchased Intangibles $27,300,000

Total Assets $235,900,000



LIABILITIES AND OWNERS' EQUITY

Accounts Payable $22,000,000

Accrued Advertising $11,800,000

Other Liabilities and Accrued Expense $1,400,000

Current Portion of Long-Term Debt $2,300,000

Long Term Debt $57,400,000

Preferred Stock, $100 par value per share,

100,000 authorized, 0 shares issued and outstanding $0

Common Stock, $1 par value per share,

250,000,000 shares authorized, 13,000,000 shares issued, 12,900,000 outstanding $13,000,000

Additional Paid-in-Capital in excess of par value, Common Stock $117,000,000

Treasury Stock ($1,000,000)

Retained Earnings (less Cash Dividends Paid) $12,000,000 $11,000,000

Total Liabilities and Owner's Equity $235,900,000

They have a good reputation with their suppliers otherwise sales would be suffering.

Eighty percent of their inventory is Just In time (JIT). This alone suggests that they rely heavily

upon inventory on hand and essentially turn this inventory around quickly. This also suggests

that their inventory overhead is minimal.

Weaknesses It is unclear as to what inventory is high potential for them. Of the JIT inventory and the

on hand inventory, it is unknown how many times per year that inventory is turned.

CanGo seems to be lacking in strategic direction. They have ideas and have taken the

company in some directions, but these are not strategic moves and rather more like “movie of the



week” moves. Along with that, their management style is also very loose and potentially

hazardous. They certainly have talent, but lack the depth needed to take their company beyond

their current model. This was evident when the CEO spoke at an awards dinner and she could

not seem to put into words what made them successful. This was a red flag. They also exude

some dissention and non -strategic decisions.

Their marketing image is unknown. Their presence on the WEB is good, but it could use

some work especially when it comes to customer following through with their purchases.

Pricing models are also not understood. A strategy to beat the completion is not known.

OpportunitiesFirst is the expansion of their inventory and depth of their inventory to better

accommodate their growing customer base. In order to arrive here, they need to understand the

demographic they are catering to and by expanding their product line, how demographics will

change.

Marketing! New marketing campaigns for their online gaming line, new books, new

CDs, DVD, etc are necessary. Some of this can be targeted marketing such as specific

customers and product matches, specials, such as reduced pricing or expanded warranties. For

example, a two (2) year warranty for the price of one (1) year.

Their WEB site needs an overhaul. The customer purchase experience is not enticing

enough to keep customers interested to follow through. They have data to back this up, so they

need to execute on that data and pick a winning model that will increase WEB traffic and keep

the traffic they do have. Thus, very little should fall through the cracks.



Speaking of an overhaul, their entire warehouse is in need of streamlining. This effort is

to reconfigure the warehouse to handle high, medium, and low volume product. Once

configured, they should tie their order entry database to their inventory database for real time

transactions. This process will then allow for the addition of bar code and RFID technology

throughout the warehouse, which will enable them to handle all customer and warehouse

transactions electronically. The objective here is to minimize errors and keep their inventory

levels visible to customers, managers and warehouse personnel.

Threats The CanGo product line is similar in nature to that of Amazon.com. Since they have very

little intellectual product (other than on line gaming), they are very vulnerable to other

companies and startups who have little to no overhead and can sell on price alone. This is a

serious threat as it could cripple their net profit margin, which currently is 11%.

Other brick and mortar stores such as Barnes and Noble can also inhibit growth of their

line of books. Special consideration is warranted here to keep their product line moving.



Market Analysis

Online Shopping SectorE-Retail sales during 2008 estimated to be around $438 billion U.S. dollars, according to

eMarketer (E-commerce industry). The US is one of the largest markets worldwide were they

were estimated to have online sales in the range of $134 billion dollars, an increase in 1998 from

the prior year of 4.6%.

Based on data presented from Marke t Wire by e-Marketer, the markets with the largest online

sales are as follows for each shopper:

UK £1,312 $1,771.30

Germany £771 $1,040.91

French £693 $935.00

With the development of the online shopping experiences increasing around the world,

several countries are emerging to have potential in online sales. China's online community grew

the largest in 2008 to be 298 million people.

Market trends could tell the storey of Amazon, which was founded in 1995. According

to e-Marketer, by the end of 2007, Amazon's net sales were $14.835 billion and an increase of

38.5% over the previous year. In 2008, they reported to have expanded another 18% to be $6.7

billion in the final quarter.

Mobile phone usage has grown significantly over the past decade along with

technological advances in mobile broadband applications, the e-tail industry opened up further



for online sales. Consumers pay with SMS messages, mobile internet services, and mobile

applications. Cell phones usage as a buying and payment channel is growing as people become

more comfortable. This means of e-commerce is extremely popular in the younger populations

as the technology becomes more available to these demographics.

Market Wire reports that 83 percent of consumers are shopping online at least weekly.

They further report that consumers use social media as a means to seek out retailers. These

would entail MySpace, Facebook, Twitter, and Linked-In to name a few. This is very apparent

in the new generation where they are connecting to the internet with their mobile phones.

Market Wire states that the reasons consumers shop in stores are:

- To avoid shipping costs (62%)

- To try the product on

- Touch or feel an item (57%)

- Immediacy (50%)

Consumers who click through online or do not follow through with online purchases, as reported

by Market Wire:

- 44% research electronics online, but purchase at a store

- 30% with kitchen items

- 28% media

- 28% furniture

Market Growth Rate

The U.S. Census Bureau reports that there was an increase retail e-commerce of from the

first quarter of 2010 at $39.8 billion. This gain in e-commerce was significantly more than that

of retail sales of 1.1%. The second quarter increase in e-commerce as reported to be 14.0% over



the second quarter of 2009 and retail sales only had an increase of 7.5% over the same time.

Furthermore, e-commerce sales in the second quarter accounted for 4.1% of total sales.

Key Success Factors

To overcome the consumer obstacles of researching online while purchasing online as

offered by Market Wire are:

- offer incentives

- Free shipping (87%)

- Free returns (63%)

- Fast shipping (42%)

- In store coupons online (51%)

Market Profitability

The retail trade was up with e-commerce in 2008 to be $143 billion compared to 2007 to

be $137 billion as obtained from the figures provided by the U.S. Census Bureau, an annual gain

of 3.3%. The U.S. Census Bureau goes into detail by stating that e-sales were 3.6% of the total

retail sales, which is up from 3.4% in 2007.

The U.S. Census Bureau compares the shipments, sales, and revenue from 2007 to 2008

while distinguishing the growth of e-commerce as shown:



Online Gaming SectorOnline gaming has grown over the past several years. The two markets that we should

think on are the home user and the online user. The home user is looking more for a solo

experience, the online player wants a good time competing or cooperating with others, and this

gives them more of a social experience, according to PeachPit.

Within the U.S., hardcore gamers reported to be in the numbers of 4 million to 7 million.

Worldwide, these numbers reported to be as high as 15 million, as reported by PeachPit. These

gamers may be small in number over the complete online gaming market, but they also spend the

most time and the most money on their hobby.

The moderate market or moderate gamers tend to spend a lot of time and money on their

games, but typically are slow to adopt new technology in pursuit of their play. PeachPit believes



these users to be between 15 to 20 million people in the U.S. and close to double worldwide.

Most moderate gamers are constrained financial compared to their hard-core gamer counterparts.

They are also more concerned about the amount of time that others would think to be socially

acceptable. They also tend to not like monthly subscription pressures and tend to dump them

unless the game works exceptionally well when the game launched.

Market Growth Rate

Lipsman, from comScore gives the following table concerning the Top online game sites

from 2007 to 2008:

Top Online Gaming SitesDecember 2008 vs. December 2007Total U.S. – Home/Work/University LocationsSource: comScore Media Metrix

Total Unique Visitors (000)

Dec-2007 Dec-2008 % Change

Total Internet : Total Audience

183,619 190,650 4

Online Gaming 67,457 85,977 27

Yahoo! Games 16,184 19,468 20

EA Online 12,673 15,369 21

Disney Games 11,933 13,458 13

WildTangent Network 7,650 13,306 74

Addictinggames.com 9,706 11,343 17

AOL Games 8,380 10,750 28



MSN Games 9,685 10,263 6

Miniclip.com 7,264 8,636 19

Nick.com Games 6,020 7,092 18

Spil Games 1,821 6,715 269

Online, ad-supported games has benefitted during the past economic downturn.

Consumers are turning to online gaming to take their minds off the bad economy. They are

turning to free alternatives as a result. These alternative avenues employ advertising space to

compensate. The companies get money from the advertisers to allow their ads to be present

within their games. This gives the gaming companies the potential to make money where they

may have lost.

Lipsman, from comScore state further that gamers are more accepting of advertisements

within games and that the advertisements have declined from 2007 to 2008 by 17%, as shown in

this figure:

Display Advertising Trends in Online Gaming CategoryNovember 2008 vs. November 2007Total U.S. – Home/Work/University LocationsSource: comScore Ad Metrix

Online Gaming Nov-2007 Nov-2008 % Change

Total Display Ad Views (MM) 6,659 8,610 29

Advertising Exposed Unique Visitors (000)

52,066 67,834 30

Advertising Exposed Reach % 28.6 35.6 25

Display Ads per Page Viewed 1.00 0.83 -17



Average Frequency 127.9 126.9 -1

GRPs Total Population 2,271 2,913 28

Key Success Factors

PeachPit reports that there are four keys to the success within the online game industry

are:

- PreparationWhen game companies give more attention to better game preparations and design, less

time and money is required to code and test that design as reported by PeachPit, to accomplish

CanGo should complete the design documents before coding begins on the game. When

companies fail to produce the design documents first, the results are loss of customers, bad word

of mouth, and millions of potential dollars lost.

- ExecutionDevelopment of the game means sticking with the design documents which is a roadmap

of how the game should go through the development stage. Every change has the potential to

create shock waves with ripple effects throughout the development process. This does not mean

that you do not have any way to be flexible as changes may be required.

- TestingThis is where you check the design implementation, increase stability, and testing

simultaneous player load limits, finding bugs and fixing them, and game balancing.



- Follow-ThroughCustomer Service - Deal with your users with integrity and honesty. They want to be able to

contact you by two-way communication in game, by telephone, and on the web.

System Stability - Reliability is the key component user want that is available to play whenever

they want.

Retention - Honest, prompt customer service and good technical stability are the two best factors

in customer retention.



Competitive Analysis The competition among e-commerce businesses is becoming more and more intensive

because of a hyper-competitive world economy with increasingly rational buyers. We have seen

how greatly the economy has changed. Studies have shown that retail sales shrank in June,

making it two months in a row. Thousands of stores closed last year declaring bankruptcy, such

as Circuit City and Filene’s Basement. Where have customers turned to? The answer is simple,

the Internet.

E-commerce sales have grown on an average of 19% per year, far faster than offline retail

over the last decade. E-commerce vendors grew sales of 1.4% in 2009 while retail sales shrank

2%. This is due capitalizing on price sensitive and increasingly Web-savvy consumers continue

to gain market share. Online merchants have unveiled a wave of innovation that is improving

economics of e-commerce.

In today’s competitive environment, especially in e-commerce business, a company must

deliver superior customer value over its competitors. Three competitors that have been analyzed

are Amazon.com, Buy.com, and Overstock.com. Our focus will be on areas such as personnel,

products, and facilities.

Amazon is a well know American electronic commerce company that has become an

icon of internet business. It was founded in 1994 and made its way on the Internet in 1995 as an

online bookstore. Frugality and customer service is the foundation that the business is built on.

Amazon has been ranked number one in customer satisfaction and service. The decision to

forego early profits to secure market share was the key to success of Amazon. This resulted in



Amazon being the most recognizable online retailer. But one of the downfalls is their shipping

costs; they are relatively high compared to other online retailers. Amazon has not adjusted their

pricing strategy despite the increases in shipping costs. Another weakness we see is the

dependency on the North American market and not expanding into international markets.

Overstock.com was founded in 1997. It was formerly known as D2 – Discounts Direct

and changed its name to Overstock.com, Inc. in October 1999. It initially began by selling

surplus and returned merchandise on an online marketplace; but now it operates as online

closeout retailer that offers discount brand-name merchandise. It features a combination of

surplus, returned, and new items and offers its products and services through its Web site.

Overstock has established partnerships with many leading brand-name companies. This allows

Overstock to buy products as significant discounts, thus attracting consumers seeking low cost

merchant. An issue that faced Overstock.com was its financial statements for fiscal years 2003-

2007 that were restated. This incurred due to the implementation of an Oracle enterprise

resource planning program (ERP) in 2005. (Taub, 2008) This caused customer refunds to

change from batch processing, to being recorded as individual transactions. In addition,

Overstock did not install all the accounting elements needed to process customer refunds in the

new system. It chose to put “manual fixes” (Taub, 2008) in place. These manual fixes did not

account for all the applicable refund types, resulting in refunds not being recorded. Another with

the ERP system was it did not reverse out shipping revenue for cancelled orders and the

company was under-billing their fulfillment collaborates for return costs and fees.

This restatement had a minimal impact on stockholders due to Overstock.com being a

large company had already a negative net worth. The 2009 Overstock.com financial statement



reported stockholder’s equity at a negative $3 million. (Overstock.com, 2009) The company has

not had a profitable quarter since 2004. (Coenen, 2009) This has not been the first time the

company is restating their financial statements. In February 2006, the company announced it

would restate 4 years of financial statements from 2002 through 2005, due to improper

accounting of freight costs. Overstock has internal control and reporting concerns that need to be

addressed.

In November 1997, with 30,000 high-tech products, Buy.com was launched. It set a first-

year record with $125 million in sales. Buy.com has expanded in numerous profit sections such

as entertainment parks, subsidiaries, and large international breweries. The company continues

to introduce new brands. A recent study shows that the company offers the best prices when

compared to other major retailers. A weakness that faces the company is the loss of investor’s

interest due to lack of profits.

Competition in the e-commerce industry is demanding. We can foresee that CanGo has

the ability to compete with their competitors in any facet of the industry. There are high profits

margins in the e-commerce industry. There is an increase in demand in the online gaming

industry. There are no major barriers to entry and the future growth potential is limitless.

Strengths

• Resources

• Strong brand names

• Good reputation among customers

• Recognizable brand

• Positive relationship with employees



Weaknesses

• Employees under trained.

• Insufficient suppliers

• Unplanned products

• planning

• Lack of industry knowledge



Financial Analysis

SummaryThis report goes into detail about the current financial condition of CanGo as well as

introducing recommendations and suggestions to help CanGo better understand their current

financial reports. CanGo will then be able to make better financial decisions based on their

current financial position. The analysis will also help CanGo make informed decisions

concerning profitability, liquidity, activity, and leverage based off the current financial

statements.

Profitability Ratios show the amount of capital that is acquired through profit.

Companies need to know how well they are profiting to be able to pay dividends or to

increase its worth.

Liquidity Ratios shows how well the company can pay it's creditor's as the debts come

due. A company can have a significant amount of assets, but its how easily those assets

can be turned into cash that most creditor's look at.

Activity Ratios will show how well the company manages its sales and operational

activities. One goal of these ratios is to produce the use of resources.

Leverage Ratios show creditors and investors the amount purchased assets by the use of

borrowed money. An example of that is purchasing equipment to make something else

instead of just purchasing the finished goods. This is called operating leverage. If you

purchased the equipment with borrowed monies this is another type leverage called

financial leverage.



Balance Sheet SuggestionsI would recommend reorganizing the current balance sheet to be easier to read and

analyze. Ways to do this is to add in instances for Current Assets, Fixed Assets, Current

Liabilities, and Fixed Liabilities. I would also suggest keeping the assets to the left side of the

sheet and moving the Liabilities and Capital to the right. By doing these steps, it will be easier to

compute the formulas to achieve the necessary ratios for a correct analysis and for better

readability.

We would go even further to suggest that CanGo create a comparative balance sheet. This will

allow CanGo to compare previous years with the current as well as create additional financial

statements that will be of benefit in determining the cash flows. Please see Appendix A for a

sample of a Comparative Balance Sheet and Statement of Cash Flows.

Definitions:

Current Assets are determined to be assets that can easily convert into cash in a year

or less.

Fixed Assets are assets that CanGo easily converts to cash and will take a year or more

to turn into cash.

Current Liabilities are debts that CanGo pays within a year.

Fixed Liabilities are debts that CanGo pays over time in a year or longer.



Suggested Balance Sheet layout and changes:Balance Sheet

ASSETSDecember 31,

2009 LIABILITIESDecember 31,

2009December 31,

2008

Cash $20,900,000 Accounts Payable $22,000,000

Marketable Securities $117,000,000 Accrued Advertising $11,800,000

Accounts Receivable $33,000,000 Other Liabilities and Accrued Expense $1,400,000

Less: Allowance for Bad Debts ($880,000) Current Portion of Long-Term Debt $2,300,000 Net Accounts Receivable $32,120,000

Total Current Liabilities $37,500,000

Inventory

Raw Materials $2,000,000 Long Term Debt $57,400,000

Work-in-process $1,000,000

Finished Goods $5,000,000 Total Fixed Liabilities $57,400,000 Inventory Purchased for Resale $24,000,000

Total Inventory $32,000,000

Total Liabilities $94,900,000

Total Current Assets $202,020,000

OWNERS' EQUITYPlant, Property and Equipment $6,700,000

Preferred Stock, $100 par value per share,

Less: Accumulated Depreciation ($320,000)

100,000 authorized, 0 shares issued and outstanding $0

Net Plant, Property and Equipment $6,380,000

Common Stock, $1 par value per share,

Prepaid Expenses $200,000 $13,000,000

Goodwill and Other Purchased Intangibles $28,000,000

Additional Paid-in-Capital in excess of par value, Common Stock $117,000,000

Less: Amortization ($700,000)Net Goodwill and Other Purchased Intangibles $27,300,000 Treasury Stock ($1,000,000)

Total Fixed Assets $33,880,000 Retained Earnings (less Cash Dividends Paid) $12,000,000 $11,000,000

Total Owners Equity $141,000,000

Total Assets $235,900,000 Total Liabilities and Owner's Equity $235,900,000



Income Statement SuggestionsWe would only suggest that CanGo make the additional line statement to reflect the total

divisional revenues for the various departments and differentiate between the amounts of returns

for each department. The total of divisional revenues should equal Net Sales Revenue, which

reflects the return of sales. Suggested Income Statement changes:



Income Statement

31-Dec-09 31-Dec-08

Sales Revenues $51,000,000 $10,300,000

Less: Sales Returns ($1,000,000) ($300,000)

Net Sales Revenues $50,000,000 $10,000,000

Less: Cost of Goods Sold ($9,000,000) ($4,000,000)

Gross Profit $41,000,000 $6,000,000

Operating Expenses:

Advertising and Sales ($26,000,000) ($3,000,000)

Depreciation ($160,000)

Salaries and Wages ($1,700,000) ($1,400,000)

Product Development ($4,000,000) ($1,200,000)

Merger and Acquisition Related Costs, including

Amortization of Goodwill and Other Intangibles ($700,000) $0

Total Operating Expenses ($32,560,000)

Income from Continuing Operations Before Income Taxes $8,440,000

Less: Income Taxes at 35% ($2,954,000)

Income from Continuing Operations $5,486,000

Discontinued Operations:

Income from Operations of Discontinued Division

(less applicable income taxes) $350,000

Loss on Disposal of Discontinued Division

(less applicable income taxes) ($150,000)

Total Gain from Discontinued Operations $200,000

Extraordinary Items:

Loss from fire (less applicable income taxes) ($200,000)

Net Income $5,486,000

Divisional Revenues

Books $15,000,000 $7,000,000

Online gaming $25,000,000

Customized MP3/CD/DVD $10,000,000 $3,000,000

Total Divisional Revenues $50,000,000 $10,000,000

Customized MP3/CD/DVD Inventory at end of 2009 $8,000,000



By differentiating between the departments, CanGo will be able to analyze the departments

better in terms of sales and returns per department. This information would then give CanGo a

better understanding of the percentage of sales on the departments as well as the returns for those

departments. Without having the financial information concerning the returns per department,

we are unable to determine or analyze the departments further.

Analysis Ratios - and what they mean to CanGo(Please see Appendix B for graphs over CanGo’s financial situations.)

Profitability Ratios (Information obtained: Ratio analysis (detailed), (2010), (Kennon, J. (2010). Financial ratio guide.) and (Kennon, J. (2010). Financial ratio guide - page 2.) See Appendix C for templates.

.

Earnings per Share

EPS = Income Available for Common Stock / Shares of Common Stock Outstanding December 31, 2009

Net income $5,486,000 Shares of common stock outstanding 12,900,000EPS 43%

This calculation shows how much CanGo is making off each share of common stock.

The return on each share of stock for CanGo is 43%.

Gross Profit Margin

Gross profit margin = (Sales - Cost of Goods Sold) / Sales

December 31, 2009Sales $50,000,000 Cost of sales $9,000,000 Gross profit margin 82.0%



The GPM shows average profit considering sales and costs of goods sold. The

gross profit margin measures the benefit that the market places on a company’s non-

manufacturing activities. A retailing company (such as CanGo) typically has a large cost

of goods sold, with a gross profit margin that varies from 20 percent to 40 percent. The

calculation of the gross profit margin helps to highlight the effectiveness of the

company's sales strategies and sales management.

CanGo has a good profit margin (82%) and passes on the costs to the customer.

Net Profit Margin

Net Profit Margin = Earnings after Taxes / Sales

December 31, 2009Net Income $5,486,000 Sales $50,000,000 Net profit margin 11.0%

The net profit margin narrows the focus on profitability, and highlights not just

the company's sales efforts, but also its ability to keep operating costs down, relative to

sales. The NPM shows how much of each sales dollar shows up as net income after

expenses are paid.

CanGo has an 11% net income after all expenses are paid or 11 cents from every dollar

is profit.

Return on Assets

Return on Assets = (Gross Profit - Operating Expense) / Total Assets

2009Net Income $5,486,000 Total assets $235,900,000 Return on assets 2.3%



ROA shows profit earned relative to the CanGo's level of investment in assets.

This formula will return the percentage earnings for a company in terms of its total assets.

It's normal to calculate the return on total assets on an annual basis, rather than on a

quarterly basis.

CanGo is not doing a good job in using its assets to generate sales. 2.32% is earned for

every $1.00 of assets and is asset heavy.

Return on Equity

Return on Equity = Net Income / Stockholder's Equity

December 31, 2009Earnings after taxes $5,486,000 Stockholder's equity $141,000,000 Return on equity 3.9%

Another related profitability measure to Return on Assets is the Return on Equity.

You can compare return on equity with return on assets to infer how a company obtains

the funds used to acquire assets. By examining the difference between Return on Assets

and Return on Equity, you can largely determine how the company is funding its

operations. Assets are acquired through two major sources: creditors (through

borrowing) and stockholders (through retained earnings and capital contributions).

Collectively, the retained earnings and capital contributions constitute the company's

equity. When the value of the company's assets exceeds the value of its equity, you can

expect that some form of financial leverage makes up the difference: i.e., debt financing.

Therefore, if the Return on Equity ratio is much larger than the Return on Assets ratio,



you can infer that the company has funded some portion of its operations through

borrowing.

CanGo is not doing a good job using the investor's money. CanGo has a return

of 3.9% on their investment.

- DuPont® Model

Return on Equity-DuPont Model = (Net Profit Margin) x (Asset Turnover) x (Equity Multiplier)

There are three components in the calculation of return on equity using the

DuPont model; the net profit margin, assert turnover, and the equity multiplier. By

examining each input individually, we can discover the sources of a company's return on

equity and compare it to its competitors.

To achieve the ROE-DuPont Model, you need to find the information for the

following three areas:

Net Profit Margin:

The net profit margin is simply the after-tax profit a company generated

for each dollar of revenue. Net profit margins vary across industries, making it

important to compare a potential investment against its competitors. Although the

general rule-of thumb is that a higher net profit margin is preferable, it is not

uncommon for management to purposely lower the net profit margin in a bid to

attract higher sales.

Net Profit Margin = Net Income ÷ Revenue (As Used Above)



Asset Turnover:

The asset turnover ratio is a measure of how effectively a company

converts its assets into sales. The asset turnover ratio tends to be inversely related

to the net profit margin; i.e., the higher the net profit margin, the lower the asset

turnover. The result is that the investor can compare companies using different

models (low-profit, high-volume vs. high-profit, low-volume) and determine

which one is more attractive business.

Asset Turnover = Revenue ÷ Assets (Will Use Later Also)

Equity Multiplier:

It is possible for a company with terrible sales and margins to take on

excessive debt and artificially increase its return on equity. The equity multiplier,

a measure of financial leverage, allows the investor to see what portion of the

return on equity is the result of debt.



Equity Multiplier = Assets ÷ Shareholders’ Equity

December 31, 2009Net Income $5,486,000 Revenue $50,000,000 Assets $235,900,000 Shareholders' Equity $141,000,000 Net Profit Margin 11%Asset Turnover 21%Equity Multiplier 167%Return on equity - DuPont Model 3.9%

The DuPont model goes into more detail then the Return on Equity (which

is the traditional method). You can see from the above table that the Equity

Multiplier would shows the percentage of equity is the result of debt and thus

when used in the DuPont Model would show how much the return on equity

would be as a result of that debt.

CanGo's results compared with the tradition Return on Equity vs. the

DuPont Model is the same and thus the same assumptions that CanGo is not

doing a good job using the investor's money. CanGo has a return of 3.9% on

their investment either way.

Revenue by Department

Department Revenue Ratio = Revenue / Department (Total percentage should equal 100%, as it should reflect the total amount of revenue).

December 31,

2009 Revenue RatioRevenue $50,000,000 Books $15,000,000 30%Online Gaming $25,000,000 50%Customized MP3/CD/DVD $10,000,000 20%



This formula will allow CanGo to be able to tell the percentage of revenue

for each department. This will allow the company to be able to see how well each

department is doing and then be able to make additional computations against

those departments for further analysis.

As you can see the percentage of revenue from CanGo's Book division is

30%, Online Gaming is 50% and Customized MP3/CD/DVD is 20%. CanGo’s

Online Gaming division is thus bringing in more revenue compared to the rest

of the departments.

Liquidity RatiosCurrent Ratio

Current Ratio = Current Assets / Current Liabilities

December 31, 2009Current assets $202,020,000 Current liabilities $37,500,000 Current ratio 5.4

The current ratio compares a company's current assets (those that can convert to

cash during the current accounting period) to its current liabilities (those liabilities

coming due during the same period). A high current ratio means that the company is

well-placed to pay back its loans. Consider, though, the nature of the current assets: they

consist mainly of cash and cash equivalents. Funds invested in these types of assets do

not contribute strongly and actively to the creation of income. Therefore, from the

standpoint of stockholders and management, a current ratio that is very high means that

the company's assets are not being used to best advantage.



CanGo can pay its short-term debt on time as it can turn its inventory easily into

cash, but Can Go is not utilizing the assets to its best advantage.

Quick RatioQuick Ratio = (Current Assets - Inventory) / Current Liabilities

December 31, 2009Current assets $202,020,000 Inventory $32,000,000 Current liabilities $37,500,000 Quick ratio 4.5

The quick ratio is a variant of the current ratio. It takes into account the fact that

inventory, while it is a current asset, is not as liquid as cash or accounts receivable. Cash

is liquid; accounts receivable can normally be converted to cash fairly quickly, by

pressing for collection from the customer. But inventory cannot be converted to cash

except by selling it. The quick ratio determines the relationship between quickly

accessible current assets and current liabilities.

A quick ratio of 1.0 is normally considered adequate, with this warning: the credit

periods that the company offers its customers and those granted to the company by its

creditor must be roughly equal. If revenues will stay in accounts receivable for as long as

90 days, but accounts payable are due within 30 days, a quick ratio of 1.0 will mean that

accounts receivable cannot be converted to cash quickly enough to meet accounts

payable.

It is possible for a company to manipulate the values of its current and quick

ratios by taking certain actions toward the end of an accounting period such as a fiscal



year. As a potential creditor, you might want to examine the company’s current and quick

ratios on, for example, a quarterly basis.

Both a current and a quick ratio can also mislead you if the inventory figure does

not represent the current replacement cost of the materials in inventory. There are various

methods of valuing inventory. The LIFO method, in particular, can result in an inventory

valuation that is much different from the inventory's current replacement value; this is

because it assumes that the most recently acquired inventory is also the most recently

sold.

If your actual costs to purchase materials are falling, for example, the LIFO (Last

In First Out) method could result in an over-valuation of the existing inventory. This

would tend to inflate the value of the current ratio, and to underestimate the value of the

quick ratio if you calculate it by subtracting inventory from current assets, rather than

summing cash and cash equivalents.

CanGo can pay its short-term debt on time without having to sell its

inventory. This means that it can come up with cash easily. I would suggest that Quick

and Current Ratios be computed quarterly and CanGo currently uses the JIT method that

should not result in an over-valuation of their existing inventory as long as they use the

FIFO (First In First Out) policies with their inventory.

Activity RatiosAverage Collection Period

Average Collection Period = Net Accounts Receivable / (Credit Sales / Days)



December 31, 2009Net Accounts Receivable $32,120,000 Credit sales per day $555,556 Average Collection Period 58

You can obtain a general estimate of the length of time it takes to receive payment

for goods by calculating the Average Collection Period. Where Days is the number of

days in the period for which Accounts Receivable and Credit Sales accumulate.

You should interpret the average collection period in terms of the company's

credit policies. If, for example, the company's policy as stated to its customers is that

payment is to be received within two weeks, then an average collection period of 30 days

indicates that collections are lagging. It may be that collection procedures need to be

reviewed, or it is possible that one particularly large account is responsible for most of

the collections in arrears. It is also possible that the qualifying procedures used by the

sales force are not stringent enough.

If the average collection period is over-long, it means that the company is losing

profit. The company is not converting cash due from customers into new assets that can,

in turn, be used to generate new income.

CanGo's average amount of time to receive payment is 58 days. I used 90 days

for the computation above, as this is the normal amount of time that Accounts Receivable

and Credit Sales accumulate. You can change this to match CanGo's standards within the

formula.

Accounts Receivable Turnover RatioAccounts Receivable Turnover Ratio = Net Sales / Accounts Receivable = #

Times

December 31, 2009



Net Sales $50,000,000 Accounts Receivable $32,120,000 Average Collection Period 2

ART indicates how many times, on average, accounts receivables are collected during a

year. The result, number of times, is the number of times, each year, the firm's accounts

receivables are collected or "cleaned up."

A high turnover ratio is generally a good thing since it means that customers are

paying their bills on time. If the turnover ratio is too high as compared to the industry the

company is in, it may mean, that the company is too restrictive in its credit and collection

policies and not extending credit to enough customers.

CanGo collected their accounts receivables 2 times during 2009.

Inventory Turnover RatioInventory Turnover = Cost of Goods Sold / Average Inventory

December 31, 2009Cost of Goods Sold $9,000,000 Average Inventory $32,000,000 Inventory Turnover 28%

No company wants to have too large an inventory (the sales force accepted:

salespeople prefer to be able to tell their customers that they can obtain their purchase

this afternoon). Goods that remain in inventory too long tie up the company's assets in

idle stock, often incur carrying charges for the storage of the goods, and can become

obsolete while awaiting sale.

Just-in-Time inventory procedures (such as the practice of CanGo) attempt to

ensure that the company obtains its inventory no sooner than absolutely required in order

to support its sales efforts. That is, of course, an unrealistic ideal, but by calculating the

inventory turnover rate you can estimate how well a company is approaching the ideal.



An acceptable inventory turnover rate can be determined only by knowledge of a

company's business sector. But if you sell items such as CanGo, you could probably

afford an annual turnover rate of around 3 or 4, because hardware does not spoil, nor does

it become technologically obsolete more frequently than every few months.

CanGo is efficiently managing and selling their inventory with an annual

inventory turnover rate of 28%.

Leverage RatiosDebt Ratio

Debt ratio = Total debt / Total assets

December 31, 2009Total Liabilities $94,900,000 Total Assets $235,900,000 Debt ratio 40.2%

It is a healthy sign when a company's debt ratio falls, although both stockholders

and potential creditors would prefer to see the rate of decline in the debt ratio more

closely match the decline in return on assets. As the return on assets falls, the net income

available to make payments on debt also falls.

The debt ratio shows how much debt is used to fund CanGo compared to equity.

CanGo is in debt by 40.2%.

Equity RatioEquity Ratio = Total Equity / Total assets

December 31, 2009Total Equity $141,000,000 Total Assets $235,900,000 Equity ratio 59.8%

The equity ratio is the opposite of the debt ratio, and by adding the debt ratio and

the equity ratios, you should get 100%). It is that portion of the company's assets



financed by stockholders. It is usually easier to acquire assets through debt than to

acquire them through equity. There are certain obvious considerations: for example, you

might need to acquire investment capital from many investors; then you might be able to

borrow the required funds from just one creditor. Less obvious is the issue of priority.

By law, if a firm ceases operations, its creditors have the first claim on its assets

to help repay the borrowed funds. An investor's risk is somewhat higher than that of a

creditor, and the effect is that stockholders tend to demand a greater return on their

investment than a creditor would. The stockholder's demand for a return can take the

form of dividend requirements or return on assets, each would increase the market value

of their stock.

A high debt ratio (or, conversely, a low equity ratio) means that existing creditors

have supplied a large portion of the company's assets, and that there is relatively little

stockholder's equity to help absorb the risk.

59.8% of CanGo's assets come from the stockholders instead of through debt.



Strategic RecommendationsIf you believe something is working and working well, then what can you do to make it

better? Some may get complacent or rest on their laurels. Those who do may enjoy the fruits

of their labor. But for how long? Stealth Applied Resources believes that by adding additional

products and online gaming, it will create more revenue and more WEB traffic. We know that

the market is always in a state flux, especially when it comes to consumables and

entertainment. Poster and positioning are critical to success and CanGo is almost there.

Therefore, Stealth Applied Resources recommends the following actions:

1. Online gaming has subscribed about 5.2 million people in generating 556 million in

revenue all in 2008. Compare this to 2003, there was approximately about 2.4 million

people who subscribed to online gaming, 209 million in revenue. Online gaming is

growing. (CNET, 2010).

2. Add a bar coded packing application. Adding this application will validate what is

packed for a customer order. It will eliminate shipping errors and be a cost avoidance.

Every shipping error cost on the average cost $250 per order error. It does not take long

to quickly lose a considerable or money. Eliminating errors equals happy customers.

3. Update the WEBPAGE. Increase customer traffic, reduce lost orders, Increase products

and Increase profits. Customer traffic is not increasing and this is just the ticket to turn

that around. A updated WEB site means something is happening at CanGo.

http://news.cnet.com/Study-Online-game-revenue-to-skyrocket/2100-1043_3-5266062.html



4. An IPO. An IPO has its benefits including, investment capital, more visibility, attracts

highly qualified personnel and offer flexibility for shareholders. It would be difficult to

find drawbacks to this effort. The CanGo balance sheet is solid and the company is

ready for this type endeavor.



ConclusionStealth Applied Resources has taken into consideration all the observations from

financial statements and corporate environment provided by the executives at CanGo to

produce this report. The purpose is to correct the obstacles and accomplish the goals of CanGo

by providing strategic recommendations that will generate a larger profit margin while

expanding the CanGo name brand and corporation.

The research and the analysis of the data have allowed for an extensive SWOT analysis

that will pin point the strengths, weaknesses, opportunities, and threats the organization may

have or face. The marketing and competitive analysis allows for the opportunity of studying the

market growth, key success factors, and market profitability. A in depth look at the company

balance sheet, income statement, and analysis ratios, etc, yields to better business and financial

decisions. Taking all of this information in account, Stealth Applied Resources recommends

that CanGo execute the strategic recommendations in the above section. Executing this will

allow for greater success at CanGo Inc, today, tomorrow, and well into the future.



References1997 economic census - re ta i l t rade - geographic area ser ies .

(2000 ,March) . Retrieved September 18, 2010. Re t r ieved f rom

h t tp : / /www.census .gov/prod/ec97/97r44-us .pdf

Coenen, T. (2009). More Accounting Mistreatment by Overstock.com. Retrieved February 11,

2010, from http://www.sequence-inc.com/fraudfiles/2009/02/09/accounting-

mistreatment-by-overstock/

E-commerce indus t ry . (2009 , November 09) . Retrieved September 18, 2010.

Re t r ieved f rom h t tp : / /www.qf inance .com/sec tor -prof i les /e -commerce

E-s ta t s . (2010 , May 27) . Retrieved September 18, 2010. Re t r ieved f rom

h t tp : / /www.census .gov/econ/es ta t s /2008/2008repor t f ina l .pdf

FEUER, S . (2010 , May 1) . Socia l shopping sc ience . Retrieved September 18,

2010. Re t r ieved f rom

h t tp : / / re ta i l t ra f f icmag.com/management /exper t s / re ta i l_soc ia l_shoppin

g_sc ience / index .h tml

Kennon, J . (2010). Financial rat io guide . Retrieved September 21, 2010. Retr ieved

from http: / /beginnersinvest .about .com/od/financialrat io/ tp/f inancial-

rat ios.htm

Kennon, J . (2010). Financial rat io guide - page 2 . Retrieved September 21, 2010.

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http://beginnersinvest.about.com/od/financialratio/tp/financial-ratios.htm

http://beginnersinvest.about.com/od/financialratio/tp/financial-ratios.htm



http: / /beginnersinvest .about .com/od/financialrat io/ tp/f inancial-

rat ios.01.htm

Lipsman, A. (2009 , January 29) . Game on! on l ine gaming surges as gamers

seek ou t f ree a l ternat ives in t igh t economy . Retrieved September 21, 2010.

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h t tp : / /www.comscore .com/Press_Events /Press_Releases /2009/1 /Onl ine

_Gaming_Grows

Marke t Wire , (2010 , Augus t ) . Eight ou t o f t en consumers shop on l ine a t

l eas t once a week . Retrieved September 21, 2010. Re t r ieved f rom

h t tp : / / f indar t ic les .com/p/a r t i c les /mi_pwwi / i s_201008/a i_n54932937/?

tag=conten t ;co l1

PeachPi t . (2003 , Apr i l 4 ) . The marke t for on l ine games . Retrieved September 21,

2010. Re t r ieved f rom h t tp : / /www.peachpi t . com/ar t ic les /a r t i c le .aspx?

p=31444

Peavler , R. (2010). Preparation for the statement of cash f lows . Retrieved

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Peavler , R. (2010) . Use prof i tabi l i ty rat ios in f inancial rat io analys is .

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ht tp: / /b izf inance.about .com/od/f inancia l ra t ios /a /Prof i tabi l i ty

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Quarter ly re ta i l e -commerce sa les . (2010 , Augus t 17) . Retrieved September 21,

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qu=rat io&origin=CT010104336#ai:TC101915531|

Study-Online-game-revenue-to-skyrocket, retrieved October 4, 2010 from:

http://news.cnet.com/Study-Online-game-revenue-to-skyrocket/2100-1043_3-

5266062.html

Taub, S. (2008). Botched ERP Hookup Spurs Restatement. CFO.com. Retrieved October 4,

2010. Retrieved from http://www.cfo.com/article.cfm/12494875

http://www.cfo.com/article.cfm/12494875



http://office.microsoft.com/en-us/templates/results.aspx?qu=ratio&origin=CT010104336#ai:TC101915531%7C




Appendix A

Example of Statements

XYZ Company Comparative Balance Sheets (Peavler, R. 2010):

XYZ Company Comparative Balance Sheets

Assets Year-End 2008 Year-End 2009

Cash $ 30,000 $ 40,000

Marketable Sec 10,000 10,000

Accts Rec 170,000 200,000

Inventory 160,000 180,000

Prepaid Exp 30,000 20,000

Investments 20,000 50,000

Plant & Equipment 1,000,000 1,100,000

Less Acc Depreciation 550,000 600,000

Net Plant & Equipment 450,000 500,000

Total Assets 870,000 1,000,000

Liabilities and Owner's Capital

Accts Pay 45,000 80,000

ST Bank Loans 100,000 100,000

Accrued Exp 35,000 30,000

LT Bank Loans 40,000 90,000

Owners Capital 650,000 700,000

Total Liabilities and Capital 870,000 1,000,000

XYZ Company Statement of Cash Flows (Peavler, R. 2010):

XYZ Company Statement of Cash Flows

1.Net Income $ 110,500

2.Depreciation 50,000

3.Inc in Accts Rec (30,000)

4.Inc in Inventory (20,000)

5.Dec in Prepaid Exp 10,000

6.Inc in Accts Payable 35,000

7.Dec in Accruals (5,000)

8.Net Cash Flows from operating activities $150,500

9.Inc in Investments (30,000

10.Inc in Plant & Equipment (100,000)

11.Net Cash Flows from investing activities (130,000)

12.Inc in LT Bank Loans 50,000

13.Dividends Paid (65,000)

14.Net Cash Flows from financing activities (10,500)

15.Net increase in cash flows $10,000



Appendix BFinancial Graphs - Prepared by Michael Stroud, Stealth Applied Resources for

CanGo Inc.

Profitability Ratios

Earnings per Share

5,486,000

12,900,000

Earnings Per Share Ratio43%

Net income

Shares of common stock outstanding

CanGo Inc.December 31, 2009

Gross Profit Margin

$50,000,000

$9,000,000

Gross Profit Margin82%

SalesCost of sales




Net Profit Margin

$5,486,000

$50,000,000

Net Profit Margin11%

Net IncomeSales

December 31, 2009 CanGo Inc.

Return on Assets

$5,486,000

$235,900,000

Return on Assets2.3%

Net IncomeTotal assets

CanGo Inc.2009



Return on Equity

$5,486,000

$141,000,000

Return on Equity3.9%

Earnings after taxesStockholder's equity


Return on Equity - DuPont® Model

$5,486,000 $50,000,

000

$235,900,000 $141,000,000

Return on Euqity - DuPont Model3.9%

Net Income

Revenue

Assets

Shareholders' Equity


Net Profit Margin - 11%Asset Turnover - 21%Equity Multiplier - 167%




30%

50%

20%


BooksOnline GamingCustomized MP3/CD/DVD


Liquidity Ratios

Current Ratio

$202,020,000

$37,500,000

Current Ratio5.4%

Current assetsCurrent liabilities


Quick Ratio



$202,020,000

$32,000,000

$37,500,000

Quick Ratio4.5%

Current assetsInventoryCurrent liabilities


Activity Ratios

Average Collection Period

$32,120,000

$555,556

Average Collection Period58 Days

Net Accounts ReceivableCredit sales per day




Accounts Receivable Turnover Ratio

$50,000,000

$32,120,000

Accounts Receivable Turnover2 Times a Year

Net SalesAccounts Receivable


Inventory Turnover Ratio

$9,000,000

$32,000,000

Inventory Turnover28%

Cost of Goods SoldAverage Inventory


Leverage Ratios

Debt Ratio



$94,900,000

$235,900,000

Debt Ratio40.2%

Total LiabilitiesTotal Assets


Equity Ratio

$141,000,000

$235,900,000

Equity Ratio59.8%

Total EquityTotal Assets




Appendix CTemplates and Tools

Jaxworks_RatioAnalysisDetailed can be downloaded from:

ht tp: / /off ice.microsoft .com/en-us/ templates/resul ts .aspx?qu=rat io&origin=CT010104336#ai:TC101915531|

Modifications made include instances for Return on Equity - DuPont Model,

Division Revenue Computations, and Accounts Receivable Turnovers. We have also

included the graphs seen in Appendix B. This template is included with our presentation

and report to the Board of CanGo Inc. All ratio and graph calculations are automatic and

accessed off the Balance Sheet and Income Statement.

Final Report: Week 8 BUSN460

Component

Points Receiv

edPoints

Allowed

Expectations

Executive Summary

10 10 Concise, no more than a half to three quarters of a page.

Originality

15

15

Paper is an original work, and contains little content (very minimal, if at all) from team analysis reports or other submissions.

SWOT

2020

Each section clearly labeled, focuses on tactical and strategic management issues, does not recount videos or issues with individual employees.

Market Analysis

2020

Market research and analysis on the state of the online shopping and gaming market: Size of market, demographics, market trends, potential , etc.

Competitive Analysis

20

20

Market research and analysis on the state of CanGo’s competitors in various market segments. Research at least three competitor’s product and service offerings, detail their relative strength and weaknesses vs. CanGo.

Financial Analysis

2020

Analysis and recommendations of Can Go’s current financial state, the impact of your recommendations on the company’s finances, any necessary financial planning required. CanGo’s position vs. competition and industry average liquidity, debt, profitability and efficiency ratios – and what they all mean to the company.

Strategic Planning Recommendations

2020

Actionable market, competitive and financial guidance to the CanGo board supported by research, facts and figures – not generalizations. and social conscience should be considered and included

Conclusion20 10 Concise, no more than a half to three quarters of a page.

Project Format and 15 15 Paper is formatted using the template provided in Document Sharing. Tone addresses the CanGo board directly and professionally. Core paper





Writing Quality: Title page, page numbers, headers, font, font size, length, and references page, APA compliance, writing quality

length 2,000-2,500 words (no limits on appendices for Gantt charts, financial analyses, supporting documentation.) Paper is APA-compliant with accurate in-text citations supporting full citations on the reference page. Paper contains no spelling, grammar, typographical or formatting errors, all links functional, graphics and charts are clear and legible. Writing quality is excellent – clear, organized and professional.

Total 150 150

Hello Team D,

What can I say. The paper was well developed. Each and every component of this assignment

was discussed in detail. I was impressed with your analysis, content, delivery,

organization and synthesis of information.

Team D Stealth Applied Resources Busn 460

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