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PCU-MBA-Financial Management
2rd Trimester, SY 2015-2016
26 Jan 2016
Prof. F. C. Rana
The Report
Financial Management
Submitted To
Prof: F.C. Rana
Submitted By
Dung Tien Nguyen
26 Jan 2016
Prof. F. C. Rana
Viewpoint:DBBs Santo
Time Context: 1997-1998
Definition of the Problem:Champion cattle farm is in danger of inability to accumulate enough cash to ensure
repayment of the DBB loan in March 15, 1998
Objectives:
Must objective: To give strategies of business based on financial analysis for reducing variable cost and deferring
payment of the DBB loan until mid-April if they feel needing
Want objective:Evaluate the break-even revenue, beak-even volume and cash inflow estimation to find problems of
break-even forecast. These give strategies to help Champion Cattle Farms repayment in March 15.
Areas of Considerations:
26 Jan 2016
Prof. F. C. Rana
Champion cattle farms had 2,5 million loan which were one-year loan on lump-sum payment term with interest
of 16 percent payable in arrears. So they have total payment in March 15 is: 2,5 + 2,5x16/100 = 2,9 million
Case 1: sold of 250 heads on month;
Profit on month
= 2,400,000 - 250x7200 10,000
= 590,000 P
Net income on month
= 590,000 590,000x35/100
= 383,500 Plinh
Total cash on year
= 383,500x12 + 835,000
= 5,437,000 > 2900,000 P
The loan is very easily for repayment
Case 2: Sold of 100 heads on month;
Profit on month
= 960,000 - 100x7200 10,000 = 230,000 P
Net income on month
= 230,000 230,000x35/100
=149,500 P
Total cash on year
= 149,500x12 + 835,000
= 2,629,000 < 2900,000 P
The Loan is very difficult for repayment
26 Jan 2016
Prof. F. C. Rana
26 Jan 2016
Prof. F. C. Rana
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