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Basic financial analysis

Just need some help on several questions on basic financial analysis. I have an idea about how to do it but I want to make sure I'm heading in the right direction! Questions (also attached Excel file for the data): D. Calculate the 2005 debt, times-interest earned and EBITDA coverage ratios. How does this company compare

EBIT and EPS Calculations for Mattel

If Mattel engaged in a capital acquisition program that expected to improve EBIT by 10% in 2004. How do I calculate the EBIT/EPS for debt financing. How do I calculate the EBIT/EPS for equity financing. Based on the above calculations what would be the best capital structure. Please explain and let me know where to f

Transfer pricing

SportCo, Inc. is a multidivisional company that produces and sells athletic equipment. Division 1 produces components for a variety of products, while Division 2 assembles the components and packages the finished product. Both divisions are free to buy and sell internally or externally. For a particular soccer ball, the cost

Textron Industries: residual income, ROI, evaluate a plant expansion opportunity

Lakeesha Roberts is a successful division manager for Textron Industries. Her division's ROI currently is 22%. Roberts is evaluating a plant expansion opportunity that is expected to produce an annual income of $500,000 and require an investment of $3,000,000. The corporation's cost of capital is 12%. a. If Roberts' perfo

Evaluating a Business: Andre's Hair Styling

Andre has asked you to evaluate his business, Andre's Hair Styling. Andre has five barbers working for him. (Andre is not one of them.) Each barber is paid $9.90 per hour and works a 40-hour week and a 50-week year, regardless of the number of haircuts. Rent and other fixed expenses are $1,750 per month. Assume that the only

Business Analysis

Bodger Ltd. has been in the business of buying and selling washing machines for some years, but has decided to look at the possiblity of manufacturing its own brand... (a) Calculate, to the nearest whole number, the break-even point in units and in value for options 2 and 3. (b)Calculate which of the three options is most

Taxes; Life Insurance; Family Maintenance Fund; Needs Approach

Sue and Tom Wright are assistant professors at the local university. They each take home about $40,000 per year after taxes. Sue is 37 years of age, and Tom is 35. Their two children, Mike and Karen, are 13 and 11. Were either one to die, they estimate that the remaining family members would need about 75% of the present comb

Compute DM, DL and OH (4-WAY).

Mayol Company produces widgets with following standard costs per unit: DM (3 lb @ 70/lb)---- $2.10 DL (2 hrs @ $3.50/hrs)---$7.00 Variable OH (2 hrs @ $.50/hr)---1.00 Fixed OH (2 hours @ $2.50/hr)---5.00 Normal monthly production is 7,100 units. During August, the company manufactured 6,950 units. 25,000 lbs of DM wer


1. In the year-end financial statements, the Manufacturing Overhead account should have: a. A debit balance, representing overhead on hand and available for use. b. A credit balance, representing accumulated depreciation and amounts owed to suppliers of overhead items. c. Either a debit or a credit balance, depending upon


Use the following to answer questions 1-4: Shown below are selected data from the balance sheet of Ames Hardware, a small retail store (dollar amounts are in thousands): Cash $20 Accounts receivable 100 Inventory 195 Total assets 450 Current liabilities 150 Non-current liabilities 120 1. Refer to the above data. Ames' d


1. Newby Corporation's 2000 net income is smaller than net cash flow from operating activities. Which of the following would not be an explanation of why net income is smaller than net cash flow from operating activities? a. Newby paid dividends to shareholders during 2000. b. Newby's accounts payable increased during 2000.

Accounting/ business analysis

1. Tandem Corporation issued 200,000 shares of $2 par value capital stock at date of incorporation for cash at a price of $7 per share. During the first year of operations, the company earned $80,000 and declared a dividend of $25,000. At the end of this first year of operations, the balance of the Common Stock account is:

Tax factors

Using the case below, please help with the following questions: What tax factors are relevant to Whelan Pharmaceuticlas in deciding where to manufacture Varex? Which country is favored in site selection? What are the non tax factors? Should the sourcing committee choose Ireland or continental Europe? Where should Whe

Accounting/business analysis

Use the following to answer questions 1-2. The following information is from the manufacturing budget and budgeted financial statements of Pinecove Industries: Direct materials inventory, 1/1 $104,000 Direct materials inventory, 12/31 128,000 Direct materials budgeted for use during year 400,000 Accounts payable to supplie

Business analysis: Baker Company, Boggs Corporation, Stellar Corporation

1. Baker Company manufactures and sells 20,000 units of product X per month. Each unit of product X sells for $15 and has a contribution margin of $4. If product X is discontinued, $56,000 in fixed monthly overhead costs would be eliminated and there would be no effect on the sales volume of Baker Company's other products. I

Accounting/business analysis

Malachite Company produces a single product. The selling price is $30 per unit, and variable costs amount to $21 per unit. Malachite's fixed costs per month total $45,000. 1. Refer to the above information. What is the contribution margin ratio of Malachite's product? a. 70%. b. 42.9%. c. 30%. d. 18%. 2. Refer to the ab

Accounting/ business analysis

The following information is available regarding the total manufacturing overhead of Peterson Company for a recent four month period. Direct Labor Manufacturing Hours Overhead May 90,000 $213,000 June 100,000 227,000 July 70,000 185,000 August 80,000 199,000 1. Refer to the above information. Using the high-low method,

Tax factors

Whelan Pharmaceuticals, a U.S. company with $3 billion in sales, must decide where to manufacture its newest product. In considering possible sites, both foreign and U.S., the firm must identify and make trade-offs between tax, marketing, and manufacturing factors. what tax issues are relevant in to this company which site

Accounting/business analysis

Use the following to answer questions 1-3. Kresswall Construction applies overhead to its projects at a rate of $250 per direct labor hour. Laborers are paid an average rate of $20 per hour. The Hillside Apartments project was charged a total of $500,000 in direct materials and $80,000 in direct labor costs. 1. Refer to th

Centel Corporation: disclosure in annual report. Is it a liability?

The following appeared in Centel Corporation's annual report: "In December, an investor in the Argo group Inc (TAGI) filed suit against a subsidiary of the company for damages from alleged breach of fiduciary duty and negligence related to the bankruptcy of a subsidiary of TAGI. The company cannot predict the ultimate outco

Accounting for market values

Accounting for market values. Mrs. Rosewood recently approached her bank manager and requested a loan for her business, Flowers Ltd. After viewing Flowers' financial information, the bank manager made the following estimates concerning Flowers, Ltd: Unrecorded Goodwill $300,000 The market value of inventories, capital asset

ABC Costing Problem

A company produces two types of leather purses: standard and handcrafted Both purses use equipment for cutting and stitching. The equipment also has the capability of creating standard designs. The standard purses use only these standard designs. They are all of the same size to accommodate the design features of the equipme

Miller-Orr Model

In the Miller-Orr Model, which is NOT true ______ When the cash balance falls to zero, the amount coverted from maretable securities to cash is the amount represented by the upper limit or When the cash balance reaches the upper limit, an amount equal to the return point minus the upper limit is converted to marketabl