1

Table of Contents

Case Study – Mondavi Wine p. 2 – 11

(This will be used for my internship at American Ag Credit and graduate

application. Both ask to supply documents of previous class work such

as a Case Study.)

Re: Letter of Recommendation Courtney Newport p. 12

(This document will help professors write my letter of recommendation

for graduate school.)

Contract and Rules Sheet p. 11-15

(This will be used for the Delta Women’s Golf Team. I plan to become

a collegiate golf coach at this community college.)

Wine Business Certificate Essay p. 16-17

(This essay will be used when applying to Sonoma State Wine Business

Program)

Appendix p. 18-20

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Case Study – Mondavi Wine

Financial Analysis

Analyzing a company’s financial statements are important in determining the company’s

performance. A company’s accounts help determine their profitability, cash flow, and value

concepts (Edge, 2012). These four concepts determine a company’s financial position. The

concepts are expended into ratios to help in the analysis. This includes profitability ratios, asset

utilization ratios, liquidity ratios, and debt utilization ratios. These ratios show the economic

aspects and accounting factors that may drive the business (Hariharan, 2014). In addition, they

help businesses to understand the meaning behind the numbers found in the financial and income

statements. The following ratios computed include the years from 2013 through 2017 for

Mondavi.

Profitability

The first group of ratios I will calculate and analyze are the profitability ratios. These

ratios measure the effectiveness Robert Mondavi has in turning its business into profits during a

period of time (Hartman, 2015).

Figure 1: Profitability Ratios for Coca Cola Company (2013-2016)

Profitability

Ratios

2013 2014 2015 2016

Profit Margin 9.0% 8.27% 8.12% 8.02%

Return on

Assets

8.24% 7.19% 7.00% 7.76%

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Return on

Equity

25.84% 25.14% 29.25% 46.33%

Profit Margin

Profit Margin is the most common profitability ratio. It is computed by dividing net sales

into net income. This calculation sows the percentage a business earns using its sales revenue.

Looking at Figure 1, profit margins have decreased since 2015. It seems that Mondavi had its

biggest drop between 2015 and 2016. The numbers have steadily dropped since 2016. Mondavi

has been underperforming compared to its biggest competitor Gallo. Gallo has an average Profit

Margin rate of 9.79 over the last three years (Gallo, 2016). Mondavi is trying to fix this issue my

lowering manufacturing cost. Lower costs would help increase profit margins. This is possible

by using a mix of packing sizes and buying boxes in bulk to receive discounts. A reason for

Mondavi’s decline in profit margin is from the increase in costs towards its marketing campaign.

Return on Assets

Return on Assets can be calculated by dividing net Income by the total Assets. Again,

looking a Figure 1, return on assets decreased from 2013 to 2016, but then actually increased in

2016. After 2013, 2014 declined significantly due the increase of property, plant and equipment

and a decrease in overall net sales. In 2016, there was also a slight bounce back on Mondavi’s

return on assets. This was caused by a decline in total assets and in net income during 2016.

Return on Equity

Finally, return on equity is calculated by dividing total liabilities by current liabilities.

There was a fluctuation in the calculations between 2013 and 2014. Return on equity then

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increased significantly in 2015. The most substantial increase, however, was found in 2016.

While net income stayed consistent throughout the four years, the extensive change in return on

equity in 2016 came from the sharp decrease in total shareholders’ equity. This was cause by the

growth of the treasury stock account from 939 dollars in 2016.

Asset Utilization

The next group of ratios to analyze is asset utilization. The purpose of these ratios is to

show the efficiency of a company’s ability to make money using its assets. These ratios are

important because they focus on specific items such as time and value.

Figure 2: Asset Utilization Ratios for Robert Mondavi (2013-2016)

Financial

Ratios

2013 2014 2015 2016

Receivables

Turnover

(Times)

5.71 5.38 5.12 5.23

Average

Collection

Period

64 Days 68 Days 71 Days 70 Days

Inventory

Turnover

(Times)

20.56 20.89 18.17 21.30

Fixed Asset

Turnover

(Times)

3.71 3.47 3.49 3.93

Total Asset

Turnover

(Times)

.91 .85 .86 .97

Receivables Turnover

Receivables turnover shows the rate at which a company collects the money that it is

owed by its customers during a period of time. From 2013 to 2015, there is a steady decrease in

the turnover. In 2016, it slightly bounces back positively. The positive 2013 and 2016 rates are

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contributed to the increase in the amounts of net sales from these years compared to a decrease in

the accounts receivables.

Average Collection Period

The average collection period helps identify the approximate amount of time it takes for

Mondavi to receive the payments from individuals who owe money. The collection period

significantly increased from 2014 to 2016. The factor that caused the decrease is the increase in

accounts receivable is from the decrease in sales. There was also a major increase in the average

daily credit sales.

Inventory Turnover

The inventory turnover calculates how fast inventory flows through the plant. It grew the

first two years computed, declined the third, but then made a huge rebound in 2016. The

significant decline in 2015 was due to the overwhelming amount of inventory compared to

previous years. Then, when the ratio was at its highest, there was an overall increase in sales, but

a significant decrease in inventory. These situations explain the sudden surge.

Fixed Asset Turnover

The Fixed Asset turnover for Robert Mondavi declined over the period of 2013 and 2014.

It then increased from 2015 to 2016. In 2014, when the turnover was at its lowest Mondavi had a

big increase in property, plant, and equipment. This was the year they also experienced the

lowest sales, which would explain with the sudden decrease in the fixed asset turnover.

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Total Asset Turnover

Like previously stated in the fixed asset turnover, total asset turnover declined from 2013

to 2014, but the slightly increased in 2015 and continued on that path for 2016. In 2013 and

2014, where the lowest two points of the total asset turnover there was the biggest increase in

intangibles and in property plant and equipment for those two years. The most substantial

positive increase was in the debt to equity ratio. In the year 2016, it jumped up significantly to

46.33 percent, which means the company, is using its equity more efficiently for its investors.

Liquidity

The purpose of the liquidity ratios is to help a company know whether they can pay short-

term debts.

Figure 3: Liquidity Ratios for Robert Mondavi (2013-2016)

Financial

Ratios 2013 2014 2015 2016

Current Ratio 1.45 1.07 1.17 0.94

Quick Ratio 1.53 1.14 1.04 0.78

Current Ratio

Mondavi’s current ratio deteriorated significantly from 2013 to 2014. It then made a

comeback in 2015, but fell in 2016. In 2013 when the current ratio was at its highest point,

Mondavi had a significant decrease in current liabilities. This relates to 2016 when the company

had more in current liabilities than it did in its current assets. When looking at its biggest

competitor, Gallo, for the year of 2016, Mondavi underperformed significantly compared to the

1.16 current ratio of Gallo.

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Quick Ratio

The quick ratio computes the total quick assets to current liabilities. The ratio has steadily

declined since 2011. When Mondavi saw its two highest ratios in 2013 and 2014, the company

maintained a huge amount in cash and short-term investments. This correlates with the two

recent years of decline because in both 2015 and 2016 Mondavi experienced a significant

decrease in cash and short-term assets. Overall, this lead to a decrease in the amount of liquid

assets available for its current liabilities.

Debt Utilization

The last of the financial ratios is the debt utilization ratio. Debt utilization ratios are used

to compare its overall debt balances to its total available credit. The utilization ratio tells possible

lenders how much debt Mondavi has and their use of credits.

Figure 4: Debt Utilization Ratios for Robert Mondavi (2013- 2016)

Financial

Ratios 2013 2014 2015 2016

Debt to Total

Assets

0.68

0.72 0.76 0.83

Times Interest

Earned 12.15 8.29 8.79 8.56

Debt to Total Assets

Debt to total assets looks at total liabilities and total assets. Looking at the calculations

above, Mondavi from 2013 to 2014 increased at about the same rate each year. This means that

since the ratio is getting higher, the financial risk of the company is increasing. Although the

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ratios do not show a significant spike, they are enough to prompt investors to take notice in that

aspect of the company.

Times Interest Earned

Times interest earned for the company was very high in 2013, but stabilized from 2014 to

2016 at a rate of 8.5. The high rate in 2013 was due to the low interest expense that Mondavi had

acquired compared to subsequent years.

Summary of Financial Ratios

Robert Mondavi is one of the biggest seller in the Lodi wine market today. Not only is it

famous locally, but has made a huge impact on the global wine markets. By looking at the

financial ratios, 2013 was the best year for the company. The financial years of 2014 and 2015

took the hardest hit, but the company seems to be slowly turning its company around. Mondavi’s

inventory ratio rates have improved over the four years. This means that the company is

managing its inventory levels in an efficient manner. Overall with the help of Mondavi’s new

marketing campaign, it is helping the company grow. However, Robert Mondavi still seems to

be falling behind in some categories like the current ratio when looking at its competitor Gallo.

Improvements and Recommendations

Overall, Robert Mondavi is making a comeback. It shows signs of an uprising despite the

increasing in advertising costs and strong currency movement (Whipp, 2015). By analyzing the

ratios of the company, it shows that the economic movement is slow. In 2013, the company

statements showed improvements in many areas. Then in 2014 and 2015, Mondavi the

statements and ratios showed struggles. Areas such as profit margin and current ratio, Mondavi is

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falling behind other companies in the industry. New marketing trends are being put in place to

try to step up their competition with Gallo.

After my financial analysis, there are many areas where Mondavi needs improvement.

The biggest improvement is the company’s profit margin rate. 2013 was Coca Cola’s highest

profit margin, which was far below the industry standard rate. By 2016, it dropped to 8% which

is 10 percent below the standard. Even though there was only a 1 percent change, it makes a

huge impact on the company’s overall sales. Mondavi needs to look at lowering its overall

expenses including warehouse automation, streamlining group functions, standardizing business

units, and reducing non- media marketing expenditures. In addition, Mondavi needs to decrease

its debts as seen in the current and quick ratio. Both ratios are not competing at the levels that

Gallo is maintaining. This is one area that Mondavi should start focusing more on. Also, they

need to aim at decreasing the about of liabilities it has or maintaining more in assets like cash

and short-term investments. They succeeded in doing this in 2013, but have had problems since.

Even though there are areas that need to receive more attention, Mondavi is heading in the right

direction and looking to increase its financial standings.

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RE: LETTER OF RECOMMENDATION FOR COURTNEY NEWPORT

To Whom It May Concern:

Hello. My name is Courtney Newport and I am a full-time professor at Holy Names

University out of Oakland, California. Let me begin by saying thank you for your time in

reviewing this recommendation.

It is my pleasure to recommend Courtney Newport for the internship at American Ag

Credit. As I have gotten to know Courtney from classroom interaction and advising sessions, I

have discovered her passion for agriculture. From our several conversations, she has expressed

to me that when she first started researching universities for her undergraduate studies, her

objective was to major in Wine Business Management so as to own and operate a winery after

graduation.

While many factors led Courtney to Seton Hill and Holy Names University, Courtney

ultimately decided to modify her educational goals. Instead of pursuing a Wine Business

Management degree, Courtney considered the benefits of a double major in business

administration and accounting. From our discussions, I believe she understands that a broader

business specialization with an understanding of the language of business (accounting), will

provide her with an expanded skill set that prepares her to manage or own a winery.

Furthermore, with her previous education and experiences in areas such as Ag Computers and

Ag Mechanics, Farm Business Management, Ag Sales and Service Teams, Vine Judging Teams,

etc., I believe Courtney has clearly evaluated her options and continues to advance to her desired

career as she excels in her undergraduate studies.

While the items mentioned above speak volumes towards this recommendation, I believe

Courtney’s work in other areas also speak clearly to her character as well as her commitment to

society that is espoused in the various agricultural scholarships. Those areas include such

activities as Relay for Life, Make a Wish Star, Volunteer Income Tax Assistance, etc.

Thus, for the reasons stated above, I believe that Courtney would make an excellent

candidate for an Agricultural based company. If given the opportunity, I have no doubt that she

would meet and exceed expectations as she finishes her undergraduate education. However, as

you reflect on this recommendation, if you would have any questions for me, please feel free to

contact me at 209-327-4466 or courtney_newport@setonhill.edu.

Respectively submitted,

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Contract and Rules Sheet

Introduction

There are many qualities a golfer should possess. An athlete must be respectful,

hardworking, resilient, trustworthy, and coachable. These are not only qualities of a remarkable

golfer, but also the same qualities to be a great citizen. It is imperative that each student athlete

of this organization acts with the core values on and off the course. The reason we emphasize

these values is because we look at an athlete’s future beyond this university.

As an athlete of this organization and golf team, you are expected to adhere to the following:

1. Be respectful to authority including coaches, supervisors, graduate assistants, and

those of higher authority.

2. Be respectful to all individuals of the team. This means you should encourage each

other’s goals and celebrate when others succeed.

3. The behavior on the course needs to be in a mature fashion. This also includes off the

course. Your behavior and conduct on the course is not only reflective of you, but

your team, college, and NCAA.

Consequences will arise if a player does not adhere to the statements above. When a case

arises, the coaching staff will review the behavior. The consequences will be laid out on the

following page. Every player will be held to the standards found in this contract.

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Punctuality

Every individual is expected to be on time to every team function/activity. This is not

limited to practices, workouts, community service, school functions, and other mandatory

activities. Individuals will be given a 5-minute grace period, however, please plan schedule to be

there 5 minutes prior to the required time. If a player shows up 5 minutes after the grace period,

then they will face consequences. These consequences could be stroke penalties or suicides. The

consequences will be described later.

Dress Code

Players will be expected to wear appropriate attire and the dress code will be strictly

enforced. The dress code is described as follows:

1. During official qualifiers and tournament play, players must wear team uniforms.

2. All players must adhere to the dress code (assigned Uniform Shirt) set forth by the

Coaching Staff.

3. Shorts, skorts, and skirts must adhere to country club length.

4. Golf shirts are not required to be tucked in, but are preferred.

Qualifier Player Golf Conduct

A player’s conduct on the course will be taken very seriously. It is important to

emphasize a player is not only representing herself, but this institution. Qualifiers will be played

with the same mentality as a tournament. All play will be conducted from the Middle Tees

(Women) at the respective facilities unless stated differently by the coaching staff or the host

professional.

1. Phones need to be put away during qualifiers.

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2. Golf rules during qualifiers will be played the same as a tournament. This means

players need to follow the USGA Golf Handbook.

Players also must maintain professionalism. A player’s temper should not ever make them loose

control.

1. Punishable acts for loosing composure include club throwing, hitting golf club against

golf bag, throwing golf clubs, foul language, and damaging the course due to anger.

2. The punishable acts will be comprised of 3 offenses during qualifiers.

a. 1st Offense – Coach will give player a warning

b. 2nd Offense – Player will be give 2 stroke penalty

c. 3rd Offense – Player will be disqualified from qualifying

Tournament Player Conduct

Players are expected to act in a professional manner at tournaments. Tournaments are to be taken

seriously and conduct will be strictly enforced. During travel and tournaments all team members

will be required to dine with their respective team members. Parents and guest(s) welcomed, but

will be responsible for the cost of their meal. Player must not wander away from the team at any

point through the duration of the tournament. This includes going to parent’s hotels or visiting

friends.

Every tournament will conduct pre-tournament preparation. This consists of mapping the course by

looking at the course website. If there is not a map on the course website, I will provide a map upon

arrival at the course. This is a mandatory requirement for each tournament round. There will be mapping

lessons at the beginning of the season. This will be directed by the coaching staff.

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IMPORTANT: Prior to and at the completion of every round each team member must

identify themselves and thank the host facility staff.

Player Responsibility

Academic

All Student Athletes must attend classes unless they are traveling for a competition. Each player

is required to submit a class schedule along with the professors contact information. (Phone #

and Email). Each player must advise and provide the team’s tournament schedule to their

professors at the beginning of each semester and, if possible, determine how missed

assignment/tests will be resolved/made up. Class attendance will be checked by coaching staff

with professors. Student athletes that miss class without permission will be subject to a penalty

stroke which will be applied to their qualifying round for each class that has been missed. Each

student athlete must communicate with their professors regarding classes missed due to

competitions and to receive any work that will be missed. All players will submit assigned

activities on time. This includes Progress reports, Stat Cards, Priority Registration, and all other

related items. Failure to do so will result in a penalty stroke being added to their qualifying score.

Volunteering and Fundraising

All players will aid in assisting coaching staff with recruits, fundraisers, and community services.

You will be required to assist host facilities when requested. Student Athletes will be required to

participate in athletics and team - wide fundraisers and will be expected to meet assigned

fundraising goals. ($500 per student Athlete) / (Each athlete is required to obtain a

minimum of 10 pledges toward the Bucks for Birdies Challenge.

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Tournament Player Selection

Tournament Player Selection which does not included Conference, Regional, or National Post

Season Play will be based on the following:

1. Low individual on SSU Team Tournament Competition will be exempt for next

tournament. (if two players tie for low score, they will be exempt and the qualifying

spots will be reduced)

2. Tournament exemptions to all players who are within 5 shots of the individual winner

of the event.

3. Three lowest scores / averages from qualifying rounds dedicated to that tournament

will earn a roster spot. (Average will be used if one misses a qualifying / Trackman

Combine may also serve as a factor in selecting traveling S/A)

4. One Coach’s pick. (Head Coach and Assistant Coaches will be involved in the

process)

5. Qualifying scores and standings will be emailed after each qualifying round.

6. Team Selection for Post Season Play to include Conference, Regional, & National

will be based on Fall and Spring performance on and off the course and will be

selected by the coaching staff and approved by Athletic Director.

IMPORTANT: Any use of tobacco, drugs, or alcohol during in season practice,

competition, and team functions will be grounds for automatic suspension from the team.

Student Athlete

Name:_____________________________________________________

Signature:__________________________________________________ Date:_____________

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Wine Business Certificate Essay

Wine business always had a special place in my heart. My background in the wine

industry has given me the drive me to pursue career in the wine business. This path led me to the

Wine Business Certificate Program. My family currently has a contract to grow grapes for Gallo.

With the excess tonnage, we bottle our own Chardonnay and Cabernet for family consumption

and donations to agricultural events. This program interests me because I would like more

knowledge in the wine industry and eventually pursue a career in the Wine Business. Originally

when I was looking at colleges, I wanted to go to Washington State University to pursue a degree

in Wine Business Management. However, I opted to play collegiate golf on the east coast and

this specific degree was not an option. I decided to receive a degree in Business and Accounting.

Then, I would find programs and internships towards a path in the wine industry. When I was

looking at Graduate School, I came across this program. I saw that if I were to do the foundation

and intermediate levels of this program, I could apply for the Wine Business Gradate Program.

This sparked my interest and the curriculum is a great fit. I am intrigued at the aspect of learning

the different sectors of wine business. The areas of focus in wine commerce, ecommerce,

marketing, and finance are topics I would love to learn about. In addition, I love how this

program was established and is taught by many individuals who are in the industry. This

program not only would help develop and advance my understanding of the wine industry, but

help me step foot into this industry. Through this program I want to gain knowledge that would

allow me to succeed in the Sonoma State MBA in Wine Business Program.

This program would help me towards my future in the wine industry. My long-term goal

in the industry is to one day manage and own my own winery in the central valley. To begin my

career towards this path, I will apply to receive my MBA. Upon receiving my MBA, I would like

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to gain experience in the wine industry by working for a winery in their accounting/ business

department. The knowledge and experience I receive from this career path and Wine Business

Program, will allow me to change pursue my long-term goal. Eventually, I would love to open a

tasting room for my family’s wine operation. In addition, I would love to expand the production

and market of the wine we bottle.

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References

King, M. M., & Dobbs, C. (2004, May 15). John Stith Pemberton (1831-1888) | New Georgia

Encyclopedia. Retrieved from http://www.georgiaencyclopedia.org/articles/business-

economy/john-stith-pemberton-1831-1888

Kozlowski, R. (2013, February 27). Pensions & investments. Retrieved from

http://www.pionline.com/article/20130227/ONLINE/130229887/coca-cola-puts-11-

billion-in-pension-funds

Lewis & Knopf, Certified Public Accountants. (2012, May 1). Retrieved November 8, 2015..

Smith, T. (2015). InvestorWords.com - Online Investing Glossary. Retrieved November 8, 2015.

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Appendix

Profitability Ratios

Profitability

Ratios

2011 2012 2013 2014

Profit Margin 9.04% 8.27% 8.12% 8.02%

Return on

Assets

8.24% 7.19% 7.00% 7.76%

Return on

Equity

25.84% 25.14% 29.25% 46.33%

Receivables

Turnover

5.71 5.38 5.12 5.23

Average

Collection

Period

64 Days 68 Days 71 Days 70 Days

Inventory

Turnover

20.56 20.89 18.17 21.30

Fixed Asset

Turnover

3.71 3.47 3.49 3.93

Total Asset

Turnover

.91 .85 .86 .97

Current Ratio 1.45 1.07 1.17 0.94

Quick Ratio 1.53 1.14 1.04 0.78

20

Financial

Ratios

2011 2012 2013 2014

Debt to Total

Assets

0.68

0.72 0.76 0.83

Times Interest

Earned

12.15 8.29 8.79 8.56