Running Case - Dirt Bikes U.S.A.

 

Introduction to Dirt Bikes     

 

Dirt Bikes USA is a small company headquartered in Carbondale Colorado that manufactures and sells its own brand of off-road motorcycles. It was founded in 1991 to product dirt bikes that could be customized for racing and off-road recreational riding using the best quality components and parts from all over the world. The company has continued to grow and now faces a new set of challenges and opportunities. Manufacturing and selling dirt bikes is a complex business. Dirt bike racing has many forms, including racing specifically for different size bikes, for short distances, long distance, and even for up to six days. Enduro bikes are for cross-country racing and motocross bikes are specially designed for racing in an enclosed dirt course that can consist of a variety of terrains; uphill, downhill, corners, jumps, and so forth. Dirt Bikes currently produces four models: the Enduro 250, the Enduro 550, the Moto 300 and the Moto 450. The two Enduros are endurance racers, while the Motos are for motocross racing. All four are very modern, with such technology as both kick and electric starters, steering stabilizers, and liquid cooling. Dirt Bikes has appealed primarily to serious trail and Enduro riders, although it is making inroads into the motocross market. [1]

   

        To view Dirt Bikes’s sales history from 2000-2004, domestic versus international sales from 2000-2004, gross and net margin from 2000-2004 and trends in selected pieces of income statement and balance sheet data, please click below:

 

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Dirt Bikes’s Sales History From 2000-2004
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Domestic Versus International Sales From 2000-2004
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Gross And Net Margin From 2000-2004
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Trends In Selected Pieces Of Income Statement And Balance Sheet Data:

*      Net sales

*      Cost of goods sold

*      Gross profit

*      Operating expenses

*      Income taxes

*      Net income/(loss)

Question for addition management report is as below:

(please click on it to view the answers)

 

 

1         

*     What are Dirt Bikes’s best and worst-performing products?

*     What is the proportion of domestic to international sales? Have international sales grown relative to domestic sales?

 

2   

*    Are sales (revenues) growing steadily, and, if so, at what rate?

*      What is the cost of goods sold compared to revenues? Is it increasing or decreasing?

*      Are the firm’s gross and net margins increasing or decreasing?

*      Are the firm’s operating expenses increasing or decreasing?

*      Is the firm heavily in debt? Does it have assets to pay for expenses and to finance the development of new products and information systems?

 

3       Summarize of Dirt Bikes’s performance for management.( Microsoft Powerpoint)

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[1] http://wps.prenhall.com/bp_laudon_mis_9/0,10571,2101577-,00.html