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# Financial Ratios

### Calculating and Assessing Debt Ratio for Apple, Inc.

Hi, I need some assistance with the following regarding Apple Inc: Balance Sheet and Market Value of Your Company's Liabilities and Equity. Refer to Apple's Inc most recent balance sheet. (Find at: http://investor.apple.com/secfiling.cfm?filingID=1193125-11-282113&CIK=320193) a) Short term liabilities (or debt) and long t

### No-Growth Industries pays out all of its earnings as dividends

No-Growth Industries pays out all of its earnings as dividends. It will pay its next \$4 per share dividend in a year. The discount rate is 12%. a. What is the price-earnings ratio of the company? b. What would the P/E ratio be if the discount rate were 10%?

### Pettijohn Inc: Given the financial statements, compute current ratio, quick ratio, asset and inventory turnover, debt ratio, ROA, ROE

Questions 14-20 Please use this data to complete questions 14-20. The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.

### How to improve financial ratios.

The course is Corporate Finance The CFO wants a discussion on what the company can do to improve its financial ratios. A colleague of yours has some ideas, but you consider them somewhat radical. THE CFO likes debate and encourages each of you to outline your ideas of what the company can do. Analysis of ratios are attac

### Ratio Analysis and Statement for Manufacturing Firms

Problem 1. The following information applies to Barnhart Company: Additional information: • Net Credit Sales = \$220,000 • Beginning Accounts Receivable = \$10,000 Solutions: a) Quick ratio = Quick Assets/Current Liabilities = (Cash + Accounts Receivable)/(Accounts Payable + Salaries Payable) (\$12,000+5000

### Accounting.

Problem 1. The following information applies to Barnhart Company: Additional information: - Net Credit Sales = \$220,000 - Beginning Accounts Receivable = \$10,000 Required: 1) Compute Barnhart's: a) Quick ratio b) Current ratio c) Working capital d) Accounts receivable turnover e) Average days to collect rece

### Hilda Company Ratio Analysis: Compute Six Financial Ratios

Compute the specified ratios using Hilda Company balance sheet at December 31, 2011 Assets Cash \$15,000.00 Marketable securities \$8,000.00 Accounts receivable \$13,000.00 Inventory \$11,000.00 Property a

### Market Value Leverage Ratio; Value of the Tax Shield

1. A firm has the following book-value balance sheet; Debt =\$13,000, Common Stock (\$1 par)= 697 and Retained Earnings = \$15,000. The book value of assets is the total of Debt, Common Stock and Retained Earnings. The firm's bonds are currently selling for \$996 and the firm's stock is currently selling for \$9. What is the firm's m

### The break-even point of Suni Corporation

A recent income statement of Suni Corporation reported the following data: Sales revenue \$6,800,000 Variable costs 2,800,000 Fixed costs 2,500,000 If these data are based on the sale of 20,000 units, the break-even point would be?

### Ratio analysis, overall financial condition and performance

See attached Vanguard file. 1. Calculate the firm's 2007 financial ratios. 2. Prepare an executive summary on the firm's overall financial condition and performance. Comment on the meaning of each ratio, discussing its trend and its comparison to the industry average.

### Financial Ratios: Break-Even

Fill in the missing data for each of the following independent cases. (Ignore income taxes.) (Leave no cells blank - be certain to enter "0" wherever required. Sales Variable Total Fixed Break-Even Rev Expenses Contribution Expenses Net Inc

### Serendipity Sound Inc. Questions

Serendipity Sound, Inc. manufactures and sells compact discs. Price and cost data are as follows: Selling price per unit (package of two CDs) \$ 25.00 Variable costs per unit: Direct material \$ 10.50 Direct labor 5.00 Manufacturing overhead 3.00 Selling expense

### Portfolio Weights, Expected Returns, and Standard Deviation

See attached file. #4. After examining the opportunity set, you notice that you can invest in a portfolio consisting of the bond fund and the large-cap stock fund that will have exactly the same standard deviation as the bond fund. This portfolio will also have a greater expected return. What are the portfolio weights and ex

### Financial Analysis.

The following data are taken from the financial statements of R. Reid Company. The average number of shares of common outstanding for the year was \$10,000. The following data are in the alphabetical order: A/P \$25,000 A/R 76,000 Cash

### Charlie's Hotdog Stand: how many additional hotdogs will need to be sold per month in order to break even?

Charlie's Hotdog Stand Charlie's Hotdog Stand sells hotdogs for \$2.50 each. The variable costs per hotdog are \$.50. Charlie's fixed costs are currently \$800 per month. Charlie is considering expanding his business to three hotdog stands which will increase fixed costs per month by \$1,200. Refer to the Charlie's Hotdog Stand

### Financial Reporting Compliance

How does a company stay in compliance with financial reporting activities and applicable financial reporting standards?

### Fine Manufacturing: Break even analysis to produce or sell the new product

George Fine, owner of Fine Manufacturing, is considering the introduction of a new product line. George has considered factors such as costs of raw materials, new equipment, and requirements of a new production process. He estimates that the variable costs of each unit produced would be \$8 and fixed cost would be \$70,000. (

### Vanguard Target Retirement 2035 Fund

Look up the mutual fund at the Morningstar Star Rating site at http://www.morningstar.com/allAnalyses/fundStarRatingList.html. Find its Morningstar Rating, Sharpe Ratio, and Standard Deviation (under Ratings and Risk). Explain what would happen to the Sharpe Ratio if the portfolio standard deviation is larger. Review the fun

### Usefulness of ratio analysis in financial statement fraud in the pharmaceutical industry

Discuss the usefulness of ratio analysis in the investigation of financial statement fraud. Use specific examples to explain the role of ratio analysis in assessing the risk of financial statement fraud in the pharmaceutical industry. Analysis should include the recording of research and development expenses in the financi

### Proctor Gamble Co: Compute ratios

See attached file. Procter Gamble Co. (NYS: PG) Required: A) Compute the following ratios for 2010, 2009 and 2008: 1. Current Ratio 2. Acid-Test (Quick) Ratio 3. Receivable Turnover Ratio 4. Inventory Turnover Ratio 5. Asset Turnover Ratio 6. Profit Margin on Sales 7. Rate of Return on Assets 7. Rate of Return on

### Explain the Capital Intensity Ratio

Explain why the following statement is False: If a company's capital intensity ratio (A*/S0) decreases as sales increase, use of the AFN formula is likely to understate the amount of additional funds required, other things held constant.

### A Firm's Debt Ratio

Answer the questions with explanation for each them. Why we choice this specific answer ? 1. Which of the following statements is CORRECT? a. The ratio of long-term debt to total capital is more likely to experience seasonal fluctuations than is either the DSO or the inventory turnover ratio. b. If two firms have the same

### 1 In the current economic environment, how can an accountant/auditor use financial ratios to determine the financial health of an organization? An accountant can use ratios to determine how much debt the company has compared to industry standards, the percentage of expenses to revenue, how solvent the company is, how liquid the company is. The auditor or accountant is looking for certain facts, including if the company were forced to close their doors tomorrow, how would the company handle their debts? How many assets can be turned into cash, to pay off creditors, to distribute to shareholders, etc. Financial ratios can also tell the auditor if the company can and should continue as a going concern - meaning, do they have enough money coming in to pay their bills, or are they starting to go under? 2 What ratios would be most appropriate to evaluate and why? Definitely the liquidity ratios, which show how liquid the company is. Liquidity is important because it shows how quickly a company can convert assets to cash. Profitability ratios are also a set of important ratios, because they show how profitable the company is, and the profitability is also compared against industry standards, which shows if the company is more or less profitable, in the current economic environment, when compared to other companies in the same industry.

1 In the current economic environment, how can an accountant/auditor use financial ratios to determine the financial health of an organization? An accountant can use ratios to determine how much debt the company has compared to industry standards, the percentage of expenses to revenue, how solvent the company is, how liquid

### Contribution margin ratio and sales mix and break-even point

Real-World Focus In a recent report the Del Monte Foods Company reported three separate operating segments: consumer products (which includes a variety of canned foods including tuna, fruit, and vegetables); pet products (which includes pet food and snacks and vegetarian products); and soup and infant-feeding products (which in

### Which firms do you expect to have particularly high or low asset turnover? Explain

Which of the following types of firms do you expect to have particularly high or low asset turnover? Explain why. Supermarket Pharmaceutical Company Jewelry Retailer Steel Company

### Bernard Company Balance Sheets

Bernard Company Balance Sheets Assets 2012 2011 current Assets Cash \$16,000 \$12,000 marketable Secr. 20,000 6,000 acct. rec. (net) 54,000 46,000 inventories 135,000 143,000 prepaid items 25,000

### Computing Total Asset Turnover

Our company has \$2,000,000 in accounts receivable and days sales outstanding is 36, half of the firm's current assets are comprised of accounts receivable. Our company has 6,000,000 in net fixed assets. Total assets turnover ratio is 1.921x?

### Starbucks financial health: Using various ratios

Please help with the following problem. Discuss the trend for each ratio and what it tells you about the organization's financial health. Use Starbucks Corporation Fiscal 2009 & 2010 Annual Report.

### Compute financial ratios for Donna Szabo Corporation

See attached file. Required: a. Compute or determine the following for the years 2003-2007. 1. Degree of financial leverage 2. Earnings per common share 3. Price/earnings ratio 4. Percentage of earnings retained 5. Dividend payout 6. Dividend yield 7. Book value per share 8. Materiality of options (use stock optio

### Ratio Scenario - Supreme Variable Franistats - current ratio, asset turnover

Scenario: Chase, Dan, and I stopped by the old watering hole for an attitude adjustment. The conversation turned to work. Over the past year, SVF (Supreme Variable Franistats) has realized an increase in our current ratio and a drop in total assets turnover ratio. Conversely, SVF's sales, quick ratio, and fixed assets turnover r