Part -1:

1. Review the Financial Statements: Analyze the current financial state of Anthony's Orchard and evaluate the impact of a major customer cancelling their expected order. This analysis should include the following:

- Your view of the current financial health of the company

- Your assessment of the materials and labor costs

- Your assessment of the income statement

- Your assessment of the cash flow statement

- Your assessment of each of the business units in Anthony's Orchard

- C-V-P analysis of the current year's financials

Conduct a What-If Analysis: This what-if analysis concerns an unforeseen circumstance that could impact the company's current health as well as its future plans. A major customer is considering cancelling their order for prepared apple products. This customer accounts for 25% of the prepared apple product revenue. Evaluate the impact of this on the budgeted statements contained in the case study.

Part -2:

Consider the following:

- The company, according to Anthony's Orchard Strategic Plan, is hoping to purchase an apple press in order to start a new line of prepared apple products-apple juice.

- The company estimates this new product offering will generate an additional $95,000 net income per year and estimated cash flows of $90,000 per year. The cost of the apple press will be $950,000 and this expenditure, as shown in the budgeted cash flow statement, is expected to take place in the fourth quarter of 2012.

- The apple press is expected to have a seven-year life and no salvage value.

- The company requires a 10% return on investment for new capital investments and the company uses a cost of capital of 8%.

- The company's revenue goal for 2015 is $25 million.

- Assume a minimum 12% gross margin on revenue.

Questions

- Do you think the company's revenue goal of $25 million by 2015 is realistic?

- Explain how purchase of the apple press might affect the company's revenue goals. Based on this information, explain whether Anthony's Orchard should invest in the apple press. Support your response with relevant information provided in the case study, the previous year's financials for 2010, the current year's financials for 2011 and the budgeted year's financials for 2012.

- Draft budgeted financial statements from 2012 to 2015 under both options that provide a realistic assessment of expected revenues and costs, and explain how you have arrived at these budgeted figures.

Part -3:

To prepare for this Individual Assignment:

Visit the Anthony's Orchard case study in the unit resources. Review again the current and historical financials. Consider that one of the company's key goals in its strategic plan is to exceed revenue of $25 million dollars by the year 2015.

Question:

- Explain the potential value of a BSC to Anthony's Orchard. Describe specific ways that the introduction of a BSC can contribute to this organization.

- Develop a BSC that is aligned to the key goal in the strategic plan, i.e. exceeding revenue of $25 million dollars by 2015. Develop, quantify and justify suitable key performance measurement criteria for Anthony's Orchard in each of these four key areas:

- Financial

- Customer

- Internal Business Processes

- Learning and Growth

Part -4:

1. Conduct a gap analysis for Anthony's Orchard. This should include:

- A statement of where the organization wishes to be by 2015 (use financial data for this, such as targeted revenues and/or profit)

- A comparison of the current financial state of the organization and the desired state by the end of fiscal year 2015

- Your suggestion for ways the company can bridge the gap identified in your comparison above

Devise a benchmarking review for Anthony's Orchard. To do this, discuss recommended strategies and measures that will be useful to measure progress towards the objective in your gap analysis.

Part -5:

As your Final Project for Financial and Performance Management, you will prepare and submit a consultancy report to the management of Anthony's Orchard, the company studied throughout this module. The company is considering expanding its product line to include apple juice. This expansion would require a significant investment in a piece of equipment known as an apple press. Your Final Project submission analyses this decision, and provides to company management a recommendation based on your analysis.