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    Loveland Computers: BY Arpita Priyadarshini PGDM NO.-12069 SUBMITTED ON-29.06.2012

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    Arpita Priyadarshini
    Walter Azko started Loveland Computers in the 1980s when personal computers were becoming more common but still nascent. The business grew rapidly but faced some challenges including overstocking of components and difficulties comparing sales data across changing storage formats over the years. Lee was asked to help organize Loveland's financial data to present to bankers. He was to analyze past sales reports, project financial statements, expenses, revenues, product longevity and use statistics to project next year's sales. By addressing these areas, Lee could collect and organize the necessary information to present Loveland's data to bankers in a clear, comparable manner.

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    Loveland Computers: BY Arpita Priyadarshini PGDM NO.-12069 SUBMITTED ON-29.06.2012

    Uploaded by

    Arpita Priyadarshini
    152 views11 pages
    Walter Azko started Loveland Computers in the 1980s when personal computers were becoming more common but still nascent. The business grew rapidly but faced some challenges including overstocking of components and difficulties comparing sales data across changing storage formats over the years. Lee was asked to help organize Loveland's financial data to present to bankers. He was to analyze past sales reports, project financial statements, expenses, revenues, product longevity and use statistics to project next year's sales. By addressing these areas, Lee could collect and organize the necessary information to present Loveland's data to bankers in a clear, comparable manner.

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    Walter Azko started Loveland Computers in the 1980s when personal computers were becoming more common but still nascent. The business grew rapidly but faced some challenges including overstocking of components and difficulties comparing sales data across changing storage formats over the years. Lee was asked to help organize Loveland's financial data to present to bankers. He was to analyze past sales reports, project financial statements, expenses, revenues, product longevity and use statistics to project next year's sales. By addressing these areas, Lee could collect and organize the necessary information to present Loveland's data to bankers in a clear, comparable manner.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    152 views11 pages

    Loveland Computers: BY Arpita Priyadarshini PGDM NO.-12069 SUBMITTED ON-29.06.2012

    Uploaded by

    Arpita Priyadarshini
    Walter Azko started Loveland Computers in the 1980s when personal computers were becoming more common but still nascent. The business grew rapidly but faced some challenges including overstocking of components and difficulties comparing sales data across changing storage formats over the years. Lee was asked to help organize Loveland's financial data to present to bankers. He was to analyze past sales reports, project financial statements, expenses, revenues, product longevity and use statistics to project next year's sales. By addressing these areas, Lee could collect and organize the necessary information to present Loveland's data to bankers in a clear, comparable manner.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 11

    LOVELAND COMPUTERS

    BY ARPITA PRIYADARSHINI PGDM NO.-12069 SUBMITTED ON-29.06.2012

    Walter azko started his computer business in the early 1980s where he was offered some peronal computers. Personal computers are now a very common item in many houses yet in 1955, there were only 250 computers in use throughout the world. so to prosper in such a business which had a very less demand at that time was a challenging job for walter azko. The market for pcs was rapidly growing and he was able to book sales for $10 million a quarter With his contacts with overseas manufacturers,walter was able to hunt the best prices and so the prices of

    But loveland computers had a few setbacks. the inventory of components was always greater than needed. sometimes there were embarassing write downs when they produced too little current for the latest model. the sales growth data he had all information on disk but as they were changing formats over the years it was very difficult to compare numbers.

    Therefore lee should work on the following points as he was asked to help walter azko: As each model lasted for about six months he can compare the previous sales report as to the sales in the last six months Accordingly he can prepare an approximate number of future purchases to be made so that there is no over stocking He should project the companys balance sheet,profit and loss account,resrve accounts He should portray the investment in assets,long term borrowings,amount payble to creditors,amount payable to creditors He should project the taxation,interest payable to banks,etc

    The next problem was of comparing numbers. In 1980s data was stored on big reels of magnetic tape, and even paper punch cards and paper tape In the next era data was stored in floppy disk of various sizes In recent days the devices used to store data is on a hard drive, or SSD, or flash drive, CD, DVD, or Blu-ray

    Therefore lees job was to convert all the former data to a readable format so as to compare numbers The figures all over the years should be easy to compare It should be at one place so that the city slickers find it easy to study the data

    The next problem was to compare the revenues coming from each product To know the revenues he should start with the expenses first the various expenses are fixed costs and variable costs. Fixed costs include rent,utility bills,adverisement,technology,etc Variable costs include customer service,direct sales,direct marketing,etc He should portray the cash outflow statements Gross profit and net profit details

    The next step is to project how long each model lasts Memory failure,stresses of constant heating and cooling should be considered in determining so So by taking all dese details he can project the longevity of each model

    The next thing lee should do is prepare what they should project next year Statistics can be applied here.the sales for the last five or ten years should be averaged to project sales for the next year This will help the banks to get an idea about future sales structure of the company Line graphs can be used toproject sales overt the last few years

    this can be used as an example to compare the revenues and net profit of a concern for two years.lee can use this format to project sales for the next year

    Thereby going with the above slides lee can collect all the information required so as to organize it all and present the data in a presentable manner to the bankers

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