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Economic Analysis of Japan’s Toy Business Part 1- Using exhibit…
Economic Analysis of Japan’s Toy Business
Part 1- Using exhibit 1 calculate:
1)Revenues for 1991
2)COGS FOR 1991
3) Calculate growth rate of revenue for 1990 to 1991(go as far as you can go) can reference 10 of Toys R US
Exhibit 1 Toys “R” Us Inc. Income Statement (millions of US$)
January 1990 January 1991
Sales 4,787.8 5,510.0
Cost of goods sold 3,309.7 3,820.8
Gross profit 1,478.2 1,689.2
Selling, general, and administrative expense. 866.4 1,024.8
Operating income before depreciation 611.8 664.4
Depreciation, depletion, and amortization 65.8 79.1
Operating profit 545.9 585.3
Interest expense 52.8 82.7
Non-operating income/expense 20.5 19.7
Special items 0.0 1.0
Pretax income 513.7 523.2
Total income taxes 192.6 197.2
Net income 321.1 326.0
Part 2- Make assumptions of the market in Japan based on : (refer to Apple Assumptions for example)
1) total addressable market
2)serviced addressable market
3) final addressable market
4)revenue per store estimate
5) estimated number of stores in year 1
Apple assumptions example
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A B C D E F G H K Value of Indoesia Business 2 Assumption 1 Gross Margin is 43%, EBITDA 30%, Apple 10-k
2022 Assumption 2 Average Growth of parent 11% 2022 2021 2020 2019 2018 2017 2016 Assumption 3 5
year horizon Net Sales 394,328 365,817 274,515 260,174 265,595 229,234 215,639 5 Assumptio…
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