Case - Jet Propulsion Laboratory
Question 1: Based on HB Company's financial statement of 2012, answer the following questions.
| Balance Sheet |
Income Statement |
| |
Year ending 12/31/2012 |
Year ending 12/31/2011 |
|
Year ending 12/31/2011 |
|
Assets
|
5 in thousands of dollars)
|
Revenues
|
($ in thousands of dollars)
|
|
Current Assets
|
|
|
|
|
Cash
|
$ 2,540
|
$ 2,081
|
Gross Sales Revenues
|
$ 116.900
|
|
Marketable Securities
|
1,800
|
1,625
|
Alowance for Sales Returned
|
4.140
|
|
Accounts Receivable
|
18,320
|
16,850
|
Net Sales Revenues
|
112.760
|
|
Inventories
|
27,530
|
26,470
|
|
|
|
Total Current Assets
|
50,190
|
i11,02.6
|
TOTAL SALE S
|
112,7.60
|
|
Long-Term Assets
|
|
|
Expenses
|
|
|
Property & Equipment at cost
|
43.100
|
39,500
|
Cost of Goods Sold
|
85,300
|
|
Less Accumulated Depreciation
|
11.400
|
9,500
|
|
|
|
Net Property & Equipment
|
31.700
|
30,000
|
Gross Profits
|
21,460
|
|
Total Long-Term Assets
|
31,700
|
30,00
|
|
|
|
|
|
|
|
Operating Expenses:
|
|
|
TOTAL ASSETS
|
$ 81,890
|
$ 77,026
|
Selling & Marketing
|
6,540
|
|
|
|
|
|
General Administrative
|
9,400
|
|
Liabilities
|
|
|
Total Operating Expenses
|
15,940
|
|
Current Liabilities
|
|
|
|
|
|
Accounts Payable
|
$ 9,721
|
$ 8,340
|
Operating Income
|
11,520
|
|
Notes Payable 0. 10%
|
8,500
|
5,635
|
|
|
|
Taxes Payable
|
3200
|
3,150
|
Interest Expenses:
|
|
|
Other Current Liabilities
|
2,102
|
1,7.50
|
Interest on Loans
|
850
|
|
Current Portion of Longterm Debt
|
2,000
|
2,000
|
Interest on Mortgage Bonds
|
2,310
|
|
Total Current Liabilities
|
25,523
|
20,875
|
|
Total Interest Expenses
|
3,160
|
|
Long-Term Liabilities
|
|
|
Earnings Before Taxes
|
8,360
|
|
Mortgage Bonds 00. 9.58%
|
22,000
|
24,000
|
|
|
|
Total Long-Term Liabilities
|
22,000
|
24,000
|
Federal & State Taxes op 40%
|
3,344
|
|
|
|
|
|
TOTAL LIABILITIES
|
$ 47,523
|
$ 44,815
|
NET INCOME
|
5,016
|
|
|
|
|
Equity
|
|
|
|
Common Stock
|
$ 13,000
|
$ 13,000
|
|
|
|
Paid in Capital in Bess of par value
|
10,000
|
10,000
|
|
|
|
Retained Earnings
|
11,36T
|
9,151
|
|
|
| TOTAL EOUFY |
$ 34.367 |
$ 32,151 |
|
|
(1) Please calculate the following ratios:
a. Quick ratio.
b. Average collection period. (In this case, annual sales are equal to total sales)
c. Gross profit margin.
(2) Bartlett Company (The example company in Lecture 4) is in the same industry as HB Company and is the major competitor of HB Company. Based on the above financial ratios, please evaluate HB Company's financial performance in 2012. (Hint: compare industry average and Bartlett Company's performance from the example in Lecture 4.)
Question 2: Read the article "Jet Propulsion Laboratory", and answer the questions below.
(1) Should Gentry Lee recommend launch or delay for the MBE mission? What are the most important factors to consider in this decision?
(2) Identify the principal risk-management processes used in the MBE project. What role does each play, and what is critical for its success?
(3) Consider the role of JPL's senior systems engineer, Gentry Lee. What challenges did he face when implementing the risk management process at JPL? What characteristics seem critical for his success?
(4) Do the new risk management processes match JPL's strategy and culture?
Line answers for the case study question