FIN 540 WRITE-UP QUESTIONS FOR THE TANPIN KANRI CASE/ TUTORIALOUTLET FIN 540 WRITE-UP QUESTIONS FOR THE TANPIN KANRI CA | Page 2

parties. Similarities among answers
from different students and outside sources will be closely
monitored.
Questions:
1.
Compute or list key financial performance measure for Seven-
Eleven Japan in fiscal 2003
(shown in Exhibit 1a as year ending in Feb. 28, 2004 and in Exhibit
1d) in terms of the total
sales (or sales revenue), gross margin (%), net profit margin (%),
inventory turnover, and
sales per square foot. Report your results in US$ when the results
are in currencies. (15
points)
Find the exchange rate between the US dollar and Japanese yen at
the end of February
2004 (e.g., Feb. 27, 2004) and use it to translate the total store sales
data for the 2003 fiscal
year into US$. Note that the fiscal years for Seven-Eleven Japan
ends on the last day of
February, so the data given in Exhibit 1a under 2004 are for the
2003 fiscal year.
Here is one website where you can locate historical exchange rates
data (Click on March 1
for the exchange rates on Feb. 27):
http://www.federalreserve.gov/RELEASES/H10/.
The company’s approximate average sales per square meter
number in 2003 is given on
page 1 of the case (at the end of the 3rd paragraph) but you will
need to convert it into an
amount in dollars per square foot).
Please use this formula to calculate the inventory turnover:
1 Inventory turnover (in a year) = Annual COGS ÷ average annual
inventory
Assume that the average total inventory per store for the entire
2003 fiscal year was
4,000,000 Japanese yens (as estimated from Exhibit 4). To get