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    Analysis of Financial Statements and Income Statements

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    1. Prepare an income statement for the month of February. Compute the ratio of total operating expense to total revenue and operating income to total revenue.
    2. Compute the per unit cost of repairing one windshield.
    3. The manager of The Windshield People must keep unit operating cost below $50 per windshield in order to get his bonus. Did he meet the goal?
    4. What kind of system could The Windshield People use to integrate all its data?
    1. Which of these suggested strategies are inconsistent with IMA standards?
    2. What should Wallace do if Cauvet insists that she follow all of these suggestions?
    1. Compute the following ratios for both companies for the current year, and decide which company's stock better fits your investment strategy.
    " a. Acid-test ratio
    b. Inventory turnover
    c. Days' sales in receivables
    d. Debt ratio
    e. Earnings per share of common stock
    f. Price/earnings ratio
    g. Dividend payout"

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    Solution Summary

    The solution provides an example where ratio analysis is used to invest in narrowed down companies. Further income statement is prepared for a repair shop.