## BUSINESS MATHEMATICS FRSB 1233 MS ROSNAH BINTI MOHD NOOR PREPARED BY

BUSINESS MATHEMATICS
FRSB 1233
MS ROSNAH BINTI MOHD NOOR

PREPARED BY:
ZUNITA BT HAYARI-FRSR160010-09A
720909086172

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TABLE OF CONTENTPAGE
1.0WHAT IS BUSINESS MATHEMATICS?3
1.1 USE OF BUSINESS MATHEMATICS IN BUSINESS4
1.1.1 Production costs calculation4
1.1.2 Price determination4
1.1.3 Profit Measurement4
1.1.4 Financial Analysis4
1.2 THE IMPORTANCE OF BASIC MATH IN BUSINESS5
2.0 INTRODUCTION – About Avon6
2.1 HISTORY – Avon Founder David H. McConnell7
2.2 AVON VALUES AND PRINCIPLES8
2.2.1 The Avon Values8
2.2.2 Principles that Guide Avon8
2.2.3 Brands/products9
2.3 LEADING GLOBAL BRANDS10

3.0 ANNUAL INCOME11
3.1 BALANCE SHEET12
3.2 CASH FLOW14
3.3 FINANCIAL RATIOS15
4.0INCOME STATEMENT FOR 2017 – QUARTERLY16
4.1 BALANCE SHEET FOR 2017- QUARTERLY17
4.2 CASH FLOW FOR 2017 – QUARTERLY19
5.0 QUARTER 4 2017 SUMMARY OF RESULTS20
5.1 Quarter 4 2017 – Total Avon Revenue Growth20
5.2Quarter 4 2017 – Total Avon Adjusted Operating Margin20
5.3 Quarter 4 2017 – Regional Segment Business Highlights21
5.4 Quarter 4 – Other Financial Key Performance Indicators22
5.5 Quarter 4 – Liquidity Remains Strong22
6.0 PROGRESS CONTINUES ON THE EXECUTION OF
FOUNDATIONAL INITIATIVES23
7.0 CONCLUSION24
REFERENCES

1.0 WHAT IS BUSINESS MATHEMATICS?
Business Mathematics
Mathematics is an important part of managing business. Business and mathematics go hand in hand this is because business deals with money and money encompasses everything in itself. There is a need for everyone to manage money as some point or the other to take decisions which requires everyone to know mathematics.
Business mathematics is used by commercial enterprises to record and manage business operations. Commercial organizations use mathematics in accounting, inventory management, marketing, sales forecasting, and financial analysis. It helps you know the financial formulas, fractions; measurements involved in interest calculation, hire rates, salary calculation, tax calculation etc. which help complete business tasks efficiently.
Hence mathematics not only helps to calculate but also analyse business problems and work upon them.
Learning and using business mathematics enables a person to think out of the box, sharpens one’s thinking and helps in precisely formulating and structuring relationships.

Business mathematics also includes statistics and provides solution to business problems. Business is always surrounded with challenges which need to be dealt with in a proper fashion so that they do no arise in future.
These problems that occur on a daily basis can be effectively solved with the help of mathematical models.

1.1 USE OF BUSINESS MATHEMATICS IN BUSINESS
In order to known a business it requires skill more than the developing a product or providing a service. Let’s look at situations where business mathematics is required:
1.1.1. Production costs calculation
Before one formally starts production and establishes its business it is very important to estimate the costs that would be incurred in relation to the manufacturing such as the cost of raw materials, machinery, rent, administrative expenses etc. In addition to these basic expenses there are other associated costs such as marketing, warehousing, interest and repayment of loans etc. Once all he expenses relating to production have been included would be easy to estimate the profit from it to sustain and remain competitive in the market. Accurately determining the cost associated with each item will make the base for the business strong.

1.1.2 Price determination
When you have successfully determined the costs, the next task is to price the products correctly so that it generates right amount of cash flows for future requirements of the business. Charging the correct selling price would ensure that the product remains profitable.

1.1.3 Profit Measurement
These require determining the net profit by subtracting the operating costs from the total amount of sales/revenue during a period of time. What also needs to deducted are the tax, depreciation, discount expenses. This helps to find out if the products are being charged enough to continue the business operations and expand.

1.1.4 Financial Analysis
You need to project the revenue and expenses of a business if we need to analyse the financial health of a business. We need to do sensitivity analysis of how an increase or decrease in sales figure or pricing could affect the business. It helps in determining how each employee contributes to the business and how I would affect. Using business mathematics helps in making these interpretations ad take the business to a higher level.

1.2 THE IMPORTANCE OF BASIC MATH IN BUSINESS
Business ownership requires more than skill in creating a product or talent at providing a service. Overseeing the finances of your company is a key to survival and success. Understanding basic business math is necessary for profitable operations and accurate record keeping.

Knowing how to add, subtract, multiply, divide, round and use percentages and fractions is the minimum you need to price your product and meet your budget.

If math is not your strength, partner with someone who can take over that role or hire a trusted employee to help your operation stay in the black and grow responsibly.

Therefore, to find out the importance of business mathematic in business, I choose one of the largest cosmetic business companies, AVON COSMETIC as an example.
I collect all the information about their company and data collection of their financial statement from the internet as for my review.

2.0 INTRODUCTION
About Avon
Avon, the company for women, is a leading global beauty company, with \$9 billion in annual revenue. As one of the world’s largest direct sellers, Avon is sold through more than 6 million active independent Avon Sales Beauty and Fashion Advisors. Avon products are available in over 100 countries, and the product line includes colour cosmetics, skincare, fragrance, and fashion and home products, featuring such well-recognized brand names as Avon Colour, ANEW, Skin-So-Soft and Advance Techniques.

Vision
Avon – The Company for Women To be the company that best understands and satisfies the product, service and self-fulfilling needs of women – globally.

Mission
To create a world with more empowered women, because empowered women bring more beauty to the world.

2.1 HISTORY
Avon Founder David H. McConnell – Creating the Company for Women
Avon’s Founder – Mr David H. McConnell offered women a rarity in 19th century America: a chance at financial independence. In 1886, it was practically unheard of for a woman to run her own business.
Only about 5 million women in the United States were working outside the home, let alone climbing the ranks of any corporate ladder. That number accounted for just 20% of all women.
On the heels of the Industrial Revolution in the United States, women were mainly confined to jobs in agriculture, domestic service and manufacturing, not exactly glamorous lines of work; the manufacturing sector, in particular, was notorious for its dangerous working conditions. On top of that, women’s wages across the board were a fraction of men’s.

For many women, McConnell would radically alter that scenario. The man behind the company for women was the son of Irish immigrants and grew up on a farm.

Yet, it was this young man from rural New York, a visionary leader decades ahead of his time, who would become a pioneer in empowering women.
McConnell, a bookseller-turned-perfume entrepreneur, would offer women the opportunity to create and manage their own businesses through what later became known as direct selling.

Avon’s Founder – Mr David H. McConnell
2.2 AVON VALUES AND PRINCIPLES
Time and again, Avon’s five values and guiding principles have served as sources of strength for the company and still do today. Avon’s values date back to its founding in 1886 and grew from BIRTH.

2.2.1 The Avon Values
Belief is the cornerstone of empowering Associates to assume responsibilities and be the very best they can be. Believe in someone — and show it — and that person will move mountains to prove you’re right.

Integrity should be the hallmark of every Avon Associate. In setting and observing the highest ethical standards and doing the right thing, we full-fill a duty of care, not only to our Representatives and customers in the communities we serve, but to our colleagues and ourselves.

Respect helps us to value differences, to appreciate each person for her or his unique qualities. Through respect, we help bring out the full potential of each person.

Trust means we want to live and work in an environment where communications are open — where people feel free to take risks, to share their points of view and to speak the truth as they see it. Trust people to do the right thing — and help them to understand your underlying reasoning and philosophy — and they won’t disappoint.

Humility simply means we’re not always right — we don’t have all the answers — and we know it. We’re no less human than the people who work for us, and we’re not afraid to ask for help.

2.2.2 Principles that Guide Avon
To provide individuals an opportunity to earn in support of their well-being and happiness.

To serve families throughout the world with products of the highest quality backed by a guarantee of satisfaction.

To render a service to customers that is outstanding in its helpfulness and courtesy.

To give full recognition to employees and Beauty and Fashion Advisors, on whose contributions Avon depends.

To share with others the rewards of growth and success.

To meet fully the obligations of corporate citizenship by contributing to the well-being of society and the environment in which it functions.

To maintain and cherish the friendly spirit of Avon.

2.2.3 Brands/products:
Colour Cosmetics
Skincare
Fragrance
Fashion ; Home
Personal Care
Hair Care

2.3 LEADING GLOBAL BRANDS
Beauty for a Purpose captures a simple truth: when you feel more beautiful, you see more beauty and create more beauty around you.
That beauty begins with Global Research ; Development team. Their world-class team of scientists, engineers and specialists are passionate about keeping their Representatives and consumers at the forefront of beauty by creating high-quality products that they trust, talk about and are proud to recommend.

Avon R;D takes a multi-disciplinary approach when creating fragrance, makeup, skincare, personal care and hair-care products that are high-tech, high quality and highly appealing to today’s consumer.
R&D team is grounded in today’s hottest beauty trends, business needs, cutting-edge technology, and a deep understanding of what our diverse consumer base wants.
This allows R;D to develop products that address consumer needs both globally and locally, as one size definitely does not fit all.

When it comes to innovation, time and again, Avon has led the industry in giving consumers breakthrough, award-winning products: powerful anti-aging skincare products; lip color with weightless hydrating gels instead of wax; and a mascara with a formula and brush so unique, it revolutionized the way women apply mascara. The list goes on and on.

The heart of Avon’s innovation is our Global R&D Centre located outside New York City.
The state-of-the-art, 225,000-square-foot facility is home to hundreds of scientists and specialists and is in the same location as Avon’s original R ; D facility, built in 1897.
Avon has six global satellite R;D facilities that allow the company to be present in key markets, developing products that are exactly what local consumers desire.

3.0 ANNUAL INCOME
Annual Income Statement (values in 000’s) HYPERLINK “https://www.nasdaq.com/symbol/avp/financials?query=income-statement&data=quarterly” Get Quarterly Data
Period Ending: Trend 12/31/2017 12/31/2016 12/31/2015 12/31/2014
Total Revenue \$5,715,600 \$5,717,700 \$6,160,500 \$7,648,000
Cost of Revenue \$2,203,300 \$2,257,000 \$2,445,400 \$3,006,900
Gross Profit \$3,512,300 \$3,460,700 \$3,715,100 \$4,641,100
Operating Expenses
Research and Development \$0 \$0 \$0 \$0
Sales, General and Admin. \$3,239,000 \$3,138,800 \$3,543,200 \$4,206,800
Non-Recurring Items \$0 \$0 \$6,900 \$0
Other Operating Items \$0 \$0 \$0 \$0
Operating Income \$273,300 \$321,900 \$165,000 \$434,300
Add’l income/expense items (\$11,800) (\$154,100) (\$21,800) (\$124,700)
Earnings Before Interest and Tax \$261,500 \$167,800 \$143,200 \$309,600
Interest Expense \$140,800 \$136,600 \$120,500 \$108,800
Earnings Before Tax \$120,700 \$31,200 \$22,700 \$200,800
Income Tax \$100,700 \$124,600 \$819,200 \$545,300
Minority Interest \$2,000 (\$200) (\$3,300) (\$3,700)
Equity Earnings/Loss Unconsolidated Subsidiary \$0 \$0 \$0 \$0
Net Income-Cont. Operations \$20,000 (\$93,400) (\$796,500) (\$344,500)
Net Income \$22,000 (\$107,600) (\$1,148,900) (\$388,600)
Net Income Applicable to Common Shareholders \$22,000 (\$107,600) (\$1,148,900) (\$388,600)
TABLE 1

3.1 BALANCE SHEET
Top of Form
Annual Income Statement (values in 000’s) HYPERLINK “https://www.nasdaq.com/symbol/avp/financials?query=balance-sheet&data=quarterly” Get Quarterly Data
Period Ending: Trend 12/31/2017 12/31/2016 12/31/2015 12/31/2014
Current Assets
Cash and Cash Equivalents \$881,500 \$654,400 \$686,900 \$936,400
Short-Term Investments \$0 \$0 \$0 \$0
Net Receivables \$457,200 \$458,900 \$443,000 \$515,600
Inventory \$598,200 \$586,400 \$624,000 \$707,700
Other Current Assets \$296,400 \$292,600 \$587,200 \$904,800
Total Current Assets \$2,233,300 \$1,992,300 \$2,341,100 \$3,064,500
Long-Term Assets
Long-Term Investments \$0 \$0 \$0 \$0
Fixed Assets \$702,700 \$711,300 \$766,900 \$1,036,800
Goodwill \$95,700 \$93,600 \$92,300 \$249,300
Intangible Assets \$0 \$0 \$0 \$0
Other Assets \$666,200 \$621,700 \$670,100 \$1,246,200
Deferred Asset Charges \$0 \$0 \$0 \$0
Total Assets \$3,697,900 \$3,418,900 \$3,870,400 \$5,596,800
Current Liabilities
Accounts Payable \$1,533,900 \$1,456,900 \$1,550,200 \$1,717,900
Short-Term Debt / Current Portion of Long-Term Debt \$25,700 \$18,100 \$55,200 \$121,700
Other Current Liabilities \$0 \$10,700 \$589,700 \$307,600
Total Current Liabilities \$1,559,600 \$1,485,700 \$2,195,100 \$2,147,200
Long-Term Debt \$1,872,200 \$1,875,800 \$2,150,500 \$2,428,700
Other Liabilities \$513,000 \$448,900 \$581,200 \$715,600
Deferred Liability Charges \$0 \$0 \$0 \$0
Misc. Stocks \$467,800 \$444,700 \$0 \$0
Minority Interest \$10,300 \$11,800 \$13,900 \$15,500
Total Liabilities \$4,422,900 \$4,266,900 \$4,940,700 \$5,307,000
Stock Holders Equity
Common Stocks \$189,700 \$188,800 \$187,900 \$187,600
Capital Surplus \$2,291,200 \$2,273,900 \$2,254,000 \$2,207,900
Retained Earnings \$2,320,300 \$2,322,200 \$2,448,100 \$3,702,900
Treasury Stock (\$4,600,000) (\$4,599,700) (\$4,594,100) (\$4,591,000)
Other Equity (\$926,200) (\$1,033,200) (\$1,366,200) (\$1,217,600)
Total Equity (\$725,000) (\$848,000) (\$1,070,300) \$289,800
Total Liabilities & Equity \$3,697,900 \$3,418,900 \$3,870,400 \$5,596,800
TABLE 2
Bottom of Form
3.2 CASH FLOW
Annual Income Statement (values in 000’s) HYPERLINK “https://www.nasdaq.com/symbol/avp/financials?query=cash-flow&data=quarterly” Get Quarterly Data
Period Ending: Trend 12/31/2017 12/31/2016 12/31/2015 12/31/2014
Net Income \$22,000 (\$107,600) (\$1,148,900) (\$388,600)
Cash Flows-Operating Activities
Depreciation \$114,000 \$113,900 \$126,100 \$169,400
Net Income Adjustments \$310,300 \$379,800 \$1,349,800 \$786,800
Changes in Operating Activities
Accounts Receivable (\$214,600) (\$216,600) (\$184,700) (\$179,000)
Changes in Inventories (\$19,200) (\$28,600) (\$106,600) (\$170,500)
Other Operating Activities \$35,700 (\$153,000) (\$77,200) (\$76,800)
Liabilities \$16,400 (\$22,300) \$131,100 \$200,100
Net Cash Flow-Operating \$271,200 \$128,000 \$91,400 \$288,900
Cash Flows-Investing Activities
Capital Expenditures (\$97,300) (\$93,000) (\$92,400) (\$126,300)
Investments \$0 \$0 \$18,400 \$10,100
Other Investing Activities \$27,700 \$10,300 \$216,500 \$15,700
Net Cash Flows-Investing (\$69,600) (\$82,700) \$142,500 (\$100,500)
Cash Flows-Financing Activities
Sale and Purchase of Stock (\$7,200) \$420,700 (\$3,100) (\$9,600)
Net Borrowings \$7,400 (\$260,700) (\$312,700) (\$88,900)
Other Financing Activities (\$200) (\$23,000) (\$5,900) \$0
Net Cash Flows-Financing \$0 \$137,000 (\$430,500) (\$208,700)
Effect of Exchange Rate \$34,100 (\$50,400) (\$80,700) (\$183,300)
Net Cash Flow \$227,100 (\$30,300) (\$275,800) (\$147,400)
TABLE 3
3.3 FINANCIAL RATIOS
Annual Income Statement (values in 000’s)
Period Ending: Trend 12/31/2017 12/31/2016 12/31/2015 12/31/2014
Liquidity Ratios
Current Ratio 143% 134% 107% 143%
Quick Ratio 105% 95% 78% 110%
Cash Ratio 57% 44% 31% 44%
Profitability Ratios
Gross Margin 61% 61% 60% 61%
Operating Margin 5% 6% 3% 6%
Pre-Tax Margin 2% 1% 0% 3%
Profit Margin 0% 2% 19% 5%
Pre-Tax ROE 17% 4% 2% 69%
After Tax ROE 3% 13% 107% 134%

Bottom of Form
TABLE 4
4.0 INCOME STATEMENT FOR 2017 – QUARTERLY (All numbers in thousands)
Revenue12/31/20179/30/20176/30/20173/31/2017
Total Revenue1,568,8001,417,8001,395,9001,333,100
Cost of Revenue611,200550,000525,000517,100
Gross Profit957,600867,800870,900816,000
Operating Expenses
Research Development—-
Selling General and Administrative827,600784,800839,300787,300
Non Recurring—-
Others—-
Total Operating Expenses—-
Operating Income or Loss130,00083,00031,60028,700
Income from Continuing Operations
Total Other Income/Expenses Net-3,600-16,0008,100-300
Earnings Before Interest and Taxes126,40082,80023,90028,400
Interest Expense34,80034,80036,10035,100
Income Before Tax91,60048,000-12,200-6,700
Income Tax Expense1,20036,10033,60029,800
Minority Interest10,30011,10011,70011,900
Net Income From Continuing Ops90,40011,900-45,800-36,500
Non-recurring Events
Discontinued Operations—-
Extraordinary Items—-
Effect Of Accounting Changes—-
Other Items—-
Net Income91,50012,500-45,500-36,500
Preferred Stock & Other Adjustmts —-
Net Income Applicable
To Common Shares91,50012,500-45,500-36,500
TABLE 5
4.1 BALANCE SHEET FOR 2017- QUARTERLY (All numbers in thousands)
Period Ending12/31/20179/30/20176/30/20173/31/2017
Current Assets
Cash And Cash Equivalents881,500663,800633,800560,000
Short Term Investments—-
Net Receivables457,200473,500450,000457,000
Inventory598,200662,500636,900630,400
Other Current Assets296,400292,700294,500301,500
Total Current Assets2,233,3002,092,5002,015,2001,948,900
Goodwill95,70096,80094,60097,100
Long Term Investments—-
Property Plant and Equipment702,700706,500721,700732,900
Intangible Assets—-
Accumulated Amortization—-
Other Assets666,200620,800636,000647,300
Deferred Long Term Asset Charges—-
Total Assets3,697,9003,516,6003,467,5003,426,200
Current Liabilities
Accounts Payable1,533,9001,452,9001,470,7001,423,500
Short/Current Long Term Debt25,70016,10013,00020,100
Other Current Liabilities-2,5003,8007,300
Total Current Liabilities1,559,6001,471,5001,487,5001,450,900
Long Term Debt1,872,2001,873,0001,873,8001,874,900
Other Liabilities513,000519,600491,500458,600
Deferred Long Term Liability Charges—-
Minority Interest10,30011,10011,70011,900
Negative Goodwill—-
Total Liabilities3,955,1003,875,2003,864,5003,796,300
Stockholders’ Equity
Misc. Stocks Options Warrants467,800461,900456,100450,400
Redeemable Preferred Stock—-
Preferred Stock—-
Common Stock189,700189,700189,600189,500
Retained Earnings2,320,3002,235,4002,228,8002,280,000
Treasury Stock-4,600,000-4,601,700-4,606,100-4,605,900
Capital Surplus2,291,2002,290,7002,289,2002,283,000
Other Stockholder Equity-926,200-934,600-954,600-967,100
Total Stockholder Equity-725,000-820,500-853,100-820,500
Net Tangible Assets-820,700-917,300-947,700-917,600
TABLE 6
4.2 CASH FLOW FOR 2017 – QUARTERLY (All numbers in thousands)
Period Ending12/31/20179/30/20176/30/20173/31/2017
Net Income91,50012,500-45,500-36,500
Operating Activities, Cash Flows Provided By or Used In
Depreciation28,40028,90029,10027,600
Adjustments To Net Income27,700100,30084,20098,100
Changes In Accounts Receivables-44,500-78,100-49,700-42,300
Changes In Liabilities82,800-8,20047,400-105,600
Changes In Inventories2,400-35,500-12,600-23,500
Changes In Other Opt Activities-2,1003,40035,900-1,500
Total Cash Flow Fr Opt Activities236,20023,80091,400-80,200
Investing Activities, Cash Flows Provided By or Used In
Capital Expenditures-30,600-23,700-19,100-23,900
Investments—-
Other Cash flows fr Investing Actv2,50022,6001,0001,600
Total Cash Flows Fr Investing Actv-28,100-1,100-18,100-22,300
Financing Activities, Cash Flows Provided By or Used In
Dividends Paid—-
Sale Purchase of Stock-600-200-200-6,200
Net Borrowings10,4003,400-7,300900
Other Cash Flows fr Financing Actv—200-200
Total Cash Flows Fr Financing Actv9,8003,200-7,700-5,300
Effect Of Exchange Rate Changes9005,20011,10016,900
Change In Cash ;Cash Equivalents217,70030,00073,800-94,400
TABLE 7
5.0 QUARTER 4 2017 SUMMARY OF RESULTS
? Taking longer than anticipated to grow revenue
? Gross margin and transformation plan savings contributed to improved profitability
? Continued performance pressure in top markets
Execute on the Basics
? Exceeded 2017 cost savings target
? Continued enhancement of strong liquidity
? Making progress in key foundational initiatives
? Fresh look, sequence and prioritize actions to accelerate path to growth
? Heightened sense of urgency
*Format – Constant \$ revenue and Adjusted non-GAAP information for the quarter
5.1 Quarter 4 2017 – Total Avon Revenue Growth
Revenue down 2% – excluding Brazil, top 15 markets would have been flat
5.2 Quarter 4 2017 – Total Avon Adjusted Operating Margin
Nearly double digit margin driven by gross margin and cost savings.

Over \$250 million in cost savings for the full year more than offset pressure from inflation, field ; selling, and distribution.

Even after excluding favourability from lower bad debt, Adjusted SG;A improved 50bps.

As cost pressure will continue, we recognize the on-going need to generate savings to fuel investments recognizing there will be seasonal variations in margin.

5.3 Quarter 4 2017 – Regional Segment Business Highlights
Pricing is not keeping pace with inflation in key markets. A deeper understanding of Representative needs and optimized incentives is critical to improving results.

1) EMEA
Revenue -2%
Segment Margin -120 bps
Russia made progress improving the Representative Experience while innovation fell short and competitive pressure continued, particularly in Fashion and Home. UK Field management challenges continue while we focus on the long-term solution to enhance the Representative experience. Road to recovery will be a long one expecting continued pressure.

2) SOLA
Revenue -1%
Segment Margin +480bps
Brazil revenue declined, due to a decrease in Active Representatives, partially offset by growth in Argentina Margin improvements driven largely by Brazil, with improved trends in bad debt providing 130bps of tailwind to Total Avon F\$ Adjusted Operating Margin during the quarter.
3) NOLA
Revenue -2%
Segment Margin -180bps
Mexico focused on service improvement in Q3, while Q4 was impacted ~\$4M by the earthquake but managed to recover the Representative base by the end of the quarter aided by a strong Christmas holiday push. Excluding the earthquake, the region would have been flat for the quarter.

4) APAC
Revenue -2%
Segment Margin -240bps
Philippines grew revenue with Active Representatives increasing. Operating margin impacted by an increase in selling expenses.

* The pace of change will vary by region particularly where there is more complexity and competition.
5.4 Quarter 4 – Other Financial Key Performance Indicators
Working capital improvements drove an increase in Operating Cash Flow.

2017 2016 variance
Q4 QTD – Adjusted Income Tax Provision (\$51m) (\$44m) (\$7m)
Q4 QTD – Cash Flow from Operating Activities \$271m \$128m \$143m
Q4 QTD – Adjusted EPS \$0.12 \$0.01 \$0.11
TABLE 8
* Current cash conversion levels are expected to continue.

5.5 Quarter 4 – Liquidity Remains Strong
We will repay the \$238M remaining on the 2019 notes and retain the financial flexibility to fund investments.

TABLE 9
6.0 PROGRESS CONTINUES ON THE EXECUTION OF FOUNDATIONAL INITIATIVES
1. Upgrade Systems
Using key learning from Brazil – to inform My Avon Business platform
Begin platform implementation in Poland beginning late 2018
Mobile enable majority of Representatives in 2018
2. Representative Focused Approach
Established a framework for the way we approach representative segmentation
Defined segmentation which is critical to begin collecting data
Identified the need to simplify Representative compensation models Critical Mass to Affect Change
The new seasoned leadership team members are key enablers to drive a performance based culture for ownership of results
Making tough decisions such as Australia
Leading by example to drive the right behaviour and level of accountability within their teams
3. Service Mind-set
Define what good service means to Avon
Develop a framework and establish KPI’s
Testing Campaign Planning Automation Project
Work to improve good service rate by 10% in 2018

7.0 CONCLUSION
Stock analysis based on fundamentals means looking at financial statements in addition to the Avon Products stock price. The key financial statements of a company are the income statement, the balance sheet and the cash flow statement.

The ability to improve financial performance depends on ability to anticipate, gauge and react in a timely and effective manner to changes in consumer spending patterns and preferences for beauty and related products.
They must continually work to develop, produce and market new products, maintain and enhance the recognition of our brands, achieve a favourable mix of products, and refine their approach as to how and where they market and sell their products.
Consumer spending patterns and preferences cannot be predicted with certainty and can change rapidly.
In addition, certain market trends may be short-lived. There can be no assurance that they will be able to anticipate and respond to trends timely and effectively in the market for beauty and related products and changing consumer demands and improve our financial results.
Furthermore, material shifts or decreases in market demand for products, including as a result of changes in consumer spending patterns and preferences or incorrect forecasting of market demand, could result in us carrying inventory that cannot be sold at anticipated prices or increased product returns by the Representatives.
Failure to maintain proper inventory levels or increased product returns by the Representatives could result in a material adverse effect on business, prospects, financial condition, liquidity, results of operations and cash flows.

REFERENCES
1. https://finance.yahoo.com/quote/AVP/financials?p=AVP2. https://www.nasdaq.com/symbol/avp/financials?query=income-statement3. file:///C:/Users/User/Desktop/avona1001232269.pdf4. https://www.avon.my/avon-my/our-company/History.html5. https://www.educba.com/what-is-business-mathematics/
6. https://www.avon.com7. Business Mathematics for UiTM Fifth Edition, Lau Too Kya, Phang Yook Ngor et al,
ISBN 13:9789834715298, May 2015