Explore BrainMass
Share

# Financial Ratios

### Financial and Ratio Analysis for CanGo

See attached files. Assumptions: 1. At the beginning of 2009, CanGo purchased the online gaming company. This purchase was for cash, paid for through the proceeds of the IPO and results in goodwill. 2. 90% of the online book sales comes from JIT, the other 10% through the inventory which CanGo possesses. 10

### Short term loans expected to be refinanced

The following information comes from the financial statements of Randall Stewart company: current assets 80,000 accounts payable 55,000 short term payable 65,000 long term debt 110,000 other long term liabilities 10000 total stockholders equity 180000 Randall has arranged with its bank t refinance its short ter

### Analyst determine whether a company's ratio is good or bad

How could an analyst determine whether a company's ratio is good or bad?

### Breakeven Analysis for a cookie store

Let's say we had a cookie store open 20 days a month. How many cookies would we have to sell each day to break even if we sold our cookies at \$1 apiece and had the following expenses? Rent = \$ 600 per month. Bank loan for our equipment = \$300 per month. Insurance = \$1,200 per year. Cookie ingredients amount to 50-cen

### EBITDA

Ziebart Corp.'s EBITDA last year was \$390,000 (= EBIT + depreciation + amortization), its interest charges were \$9,500, it had to repay \$26,000 of long-term debt, and it had to make a payment of \$17,400 under a long-term lease. The firm had no amortization charges. What was the EBITDA coverage ratio?

### Dousmann Company: Compute margin of safety in dollars; margin of safety ratio

For Dousmann Company actual sales are \$1,200,000 and break-even sales are \$840,000. Compute the following (a) the margin of safety in dollars and (b) the margin of safety ratio. Margin of safety in dollars \$ Margin of safety ratio

### Bennis Company - Ratio Analysis Example

E18-7 Bennis Company has the following comparative balance sheet data: Bennis Company Balance Sheet (Partial) December 31, 2010 2011 2012 Cash \$15,000 \$30,000 Receivables (net) 70,000 60,000 Inventories 60,000 50,000

### Stock Dividend, Common Stock, and Dividend Payout Ratio

1. Heintz Corp. has just declared a 10% stock dividend. The company's pre-stock dividend common stockholders' equity was as follows: Common stock (\$0.50 par, 10,000,000 shares) \$5,000,000 Contributed capital in excess of par 48,000,000 Retained earnings 97,500,000 Total common stockholders'

### Paula's Beauty Salon: Compute Contribution Margin, Break Even and Margin of Safety

In the month of June, Paula's Beauty Salon gave 3400 haircuts, shampoos, and permanents at an average price of \$34. During the month, fixed costs were \$12716 and variable costs were 83% of sales. A) Determine the contribution margin in dollars, per unit, and as a ratio. B) Using the contribution margin technique, compute th

### Benefits of financial bubbles in commercialization of space

Are the 'bubbles' are such a bad thing? Maybe those investing are laying the foundations of what is still to be achieved - pioneers that do not make money out of it. NASA (i.e government) did some pioneering work and now the money is to be made by commercialization of space.

### Applying the Regression Model

1. During its first year of operations, ABC Company paid \$23,000 for direct materials and \$18,500 for production workers' wages. Indirect manufacturing costs on the production facilities amounted to \$16,500 while general, selling, and administrative expenses totaled \$3,000. The company produced 16,000 units and sold 14,000 units

### Compute the missing amount in the paris-perfume.com financial statement

The following information is provided in the 2011 annual report to shareholders of paris-perfume.com: December 31, 2011 December 31, 2010 Accounts receivable ??? \$100 million Inventory \$70 million \$30 million Other assets ??? \$170 million Total assets ??? \$300 million Total liabilities ??? \$100 million Total stockhol

### 11.12 Whittaker, Inc: Income statement and ratio analysis

See attached case study for Whittaker, IncProblem Description: Presented below are partially completed financial statements for Whittaker, Inc.: WHITTAKER, INC. Income Statement For the Year Ended December 31, 2011 Sales \$

### Which the following are factors in determining a company's credit rating? Its loans outstanding, dividend payout ratio, free cash flow, and debt-equity ratio Its debt-equity ratio, current ratio, and free cash flow Its interest coverage ratio, debt-asset ratio, and default risk ratio Its annual interest payments, current ratio, times-interest-earned ratio, debt-equity ratio, and ROE A company's current ratio, how much it has in accounts payable, the value of pairs in inventory, and its annual interest payments

Which the following are factors in determining a company's credit rating? Its loans outstanding, dividend payout ratio, free cash flow, and debt-equity ratio Its debt-equity ratio, current ratio, and free cash flow Its interest coverage ratio, debt-asset ratio, and default risk ratio Its annual interest payme

### Discussing the concept of breaking even

We hear a lot from those we know in business, from our studies, or from the news the words "break even". If the adage in business is to make a profit, or if the firm is a sole-proprietorship, does breaking even help the owners? If the incoming revenue equals the expenses incurred, is this profitable? Can the sole-proprietor surv

### Margin of safety & Breakeven point

Mohan Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning next month's budget appear below: Selling price \$25 per unit Variable expenses \$15 per unit Fixed expenses \$8,500 per month Unit sales 1,000 units per month Required: 1. Compute the company's margin

### How to calculate Beak-Even in Units and Dollars

RL Corp. sells its finished product for an average of \$35 per unit with a variable cost per unit of \$21. The company has fixed operating costs of \$1,050,000. a) Calculate the firm's operating breakeven point in units. b) Calculate the firm's operating breakeven in dollars. c) Using 100,000 units as a base, what is the firm'

### Hi/Low and Regression Forecasts with template

Please answer the attached questions, in a word document, using the attached excel template. Hi/Low and Regression Models: a. Complete the analysis (see Excel template) b. 1) Anne asked specifically about the revenue and volume levels necessary to produce an operating income of \$55,000 which you identified as: ________

### Comparative Ratio Analysis for Coca-Cola and PepsiCo

C11-11 Analytical case-comparative analysis of profitability and financial leverage measures The annual reports of the Coca-Cola Co. and PepsiCo, Inc., indicate the following for the year ended December 31, 2008 (amounts in millions): Coca-Cola Co. PepsiCo., Inc. Net revenues \$31,994 \$43,251 Net income 5,807 5,

### P11-8 Tice Company ratios, journalize transactions

P11-8 Effect of transactions on liquidity measures Requirement 1: Calculate the working capital, current ratio, and acid-test ratio for Tice Company as of September 30, 2010. Requirement 2: Summarized here are the transactions/events that took place during the fiscal year ended September 30, 2011. 1. Credit sales for th

### Evaluate the use of common size analysis and/or percent change analysis. List some of the limitations of the uses of using ratios.

1) An alternative approach to assessing the financial health and performance of a firm is to conduct a common size analysis or percent change analysis. Define each of these methods of evaluating firm performance. 2) Finally, present a few (i.e., three or four) of the limitations of uses of ratios and financial statement ana

### Indicate the effect of the following actions on cash levels and current ratio.

Indicate the effect of the following actions on cash levels and current ratio. Assume the company has a current ratio greater than one. Indicate whether the effect is to increase (I), decrease (D), or if it has no effect (NE). Consider each action independent from the others.

### Use of High Low method for variable and fixed costs; Carmelita contribution margin

1.)The manufacturing cost of Mocha Industries for three months of the year are provided below: Total Cost Production April \$63,100 1,200 units May

### Cash flow, financial statements, ratio analysis and time value of money

Given your understanding of cash flow, financial statements, ratio analysis and time value of money, provide an in depth example of why the integration of these concepts would be important.

### Break-Even Point Questions for Flecker Vending and Morgan Tool

Using an Excel spreadsheet (see attached file), complete Problems 1 & 2 below. Problem 1 - Flecker Vending Company Flecker Vending Company operates and services snack vending machines located in restaurants, gas stations, and factories in four northwestern states. The machines are rented from the manufacturer. In addition

### The capital structure decision and the cost of capital

Balance Sheet and Market Value of Raytheon Liabilities and Equity Refer to Raytheon most recent balance sheet. Review the "liabilities and equity side" of the balance sheet. (a) Short term liabilities (or debt) and long term liabilities Find out from the balance sheet of the company the total of the short term liabiliti

### Ratio Analysis Performance Terms

Base on the information provided (please see attachment), Please explain the company's performance in terms of its liquidity, debt and asset management, profitability, profitability, activity, and market value. What do the numbers say about the company and its past, present, and future potential? Use tables and graphs as appro

### The 3-Stage Dupont Formula

See attached file for the tables. Ratio Analysis a. Calculate the 3 stage DuPont equation for Williams Corporation given the following 2007 information: b. Discuss at least 3 qualitative factors that should be considered when analyzing a company's financial performance.

### estimate the cost of equity

You need to estimate the equity cost of capital for XYZ Corp. You have the following data available regarding past returns: 2007 Risk free return 3% Market return 6% XYZ return 10% 2008 Risk free return 1% Market return -37% XYZ return -45% A) What was XYZ's average historical return? B) Compute the markets an

### Given financial statements, calculate ratios for 2010; analyze overall financial situation

See attached file.