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Financial Ratios

Financial Ratios Identified

Identify two ratios that you feel would be most important for each of the following groups. Explain your rationale. Shareholders. Bankers. Bondholders. Managers. Then, asssess these two ratios defined for each group and make an additional argument for a third important ratio for each group. 909 words

Contribution margin ratio; break-even point in dollar sales

Madison Musical Education Company (MME) provides instrumental music education to children of all ages. Payment for services comes from 2 sources: (1) a contract with Country Day School to provide private music lessons for up to 150 band students a year (where a year is 9 months of education) for a f

Finance: ratios, analysis

Use the following information to answer questions # 7 through 16 Enron Corporation Income Statement for the year ending 12/31/XX (in thousands of dollars) Net sales $ 2,700 Operating Costs (2,350) Depreciation ( 150) Interest Expense ( 70) EBT 130 Income Tax (40%) ( 52) N

Contribution margin ratio

Herriot Company has total fixed costs of $180,000 and a contribution margin ratio of 40%. Assume tht an additional advertising expenditure of $4,000 would increase sales by $8,000. Should the company spend this additional amount on advertising? Explain either a yes or no response and show calculations to support your answer.

Griffin Company financial data: compute ROA, current ratio

The 2009 financial statements for the Griffin Company are as follows: GRIFFIN COMPANY STATEMENT OF FINANCIAL POSITION 12/31/09 12/31/08 Assets Cash $40,000 $10,00 Accounts receivable 30,000 55,000 Inventory 110,000 70,000 Property, plant, and equipment 250,000 257,000 Total assets $430,000 $392,000 Liabilities and st

Financial statements for a health care facility

Appendix A Figure 1 Summary Period End July 31, 2010 Appendix B Figure 2 Statement of Operations Appendix C Figure 3 Balance Sheet Appendix D Figure 4 Statement of Cash Flows Appendix A Figure 1 Summary Period End June 30, 2010 Appendix B Figure 2

Financial Ratio Analysis: Compare operating costs for Wal-Mart and Sears

Wal-Mart and Sears are my two organizations The chief executive officer of your organization has asked you to compare the organization you are thinking of acquiring with a competitor. Obtain financial statements for the organization under investigation and its competitor, and perform the following tasks: *Discuss the conc

Pocco Company: Create a template including all formulas for ratio computations

See attached files. Provide "How to" template to include all formulas for problem 13-23A. PROBLEM 13-23A - Ratio Analysis Use the financial statements for Pocco Company from Problem 13-22A to calculate the following ratios for 2006 and 2005. a. Working capital b. Current ratio c. Quick ratio d. Accounts receivab

Comparative Analysis Problem: Tootsie Roll VS. Hershey Foods The problem includes the calculation of certain ratios for both the companies and their comparison regaring the liquidity, profitability and solvency of both the companies.

Comparative Analysis Problem: Tootsie Roll VS. Hershey Foods The financial stataments of Tootsie Rolls and Hershey Foods are attached. Hershey's average number of shares outstanding was 253,881,000 and Tootsie Rolls was 52,366,000. Instructions: (a) For each company calculate the following values: (1) Working C

Comparative Analysis: Hershey & Tootsie Financial Ratios

Using the financial statements for Tootsie Roll Industries and The Hershey Company, respectively, calculate and compare the financial ratios listed below for the year ended on December 31, 2007. Prepare a four-column worksheet in Excel, with the left-most column (column 1) to write the ratio names, the second column from the

Analysis of Amount of Dividends, Cash or Stock, Payout Ratio

Please show all the work in a non Excel format. 1. The Hastings Sugar Corporation has the following pattern of net income each year, and associated capital expenditure projects. The firm can earn a higher return on the projects than the stockholders could earn if the funds were paid out in the form of dividends.

Contribution margin ratio and its usefulness in business planning

Please show references. 1. What is meant by a product's contribution margin ratio? How is this ratio useful in planning business operations? Give an example of a company and specific items that might go into the calculation of the contribution margin. Can break-even sales be calculated by using contribution ratio? 2. Your

Financial Ratios for External and Internal Users

(1) What three ratios would you list as the most important? Why? (2) Which ratios would external users be most interested in? Why? (3) Which ratios would best help internal users manage the business? Why? (4) Beyond the basic financial statements what other information would you want to fully analyze a company's p

Calculating financial ratios: SmallBiz Industries Inc.

Below are the items that I need help figuring out. I need to be able to show the work. I also need any references documented. Thanks!! Following are selected account balances for SmallBiz Industries Inc.: Description Current Year Last Year Cash

Granny Strand Company and Speir Specialty Manufacturing Problems

Problem 1 Granny Strand Company provided the following information for the product it sells: Sales price $50 per unit Variable cost of goods sold $23 per unit Fixed cost of goods sold $800,000 Variable selling expense 10% of sales price Variable administrative expense $2.00 per unit Fixed selling expense $400,000 Fixe

Susie's Cakes by Design: Financial/Ratio Analysis and Commentary

Given the following financial information (balance sheet, income statement, and historical and industry averages), analyze the company's overall financial situation. Base your analysis on these financial statements and financial ratios. 1. Calculate 13 financial ratios as follows: Profitability Ratios (3 ratios) Asset Ut

Susie's Cakes by Design: Break Even Analysis, earnings per share

Susie has just informed you that she is considering an expansion of her facilities to accommodate business growth. The current income statement is as follows: Sales $5,000,000 Less: Variable expenses (50% of sales) $2,500,000 Fixed expenses $1,800,000 Earnings before interest and taxes (EBIT) $700,000

Finance: 7 multiple choice in which ratios are used in business analysis

1. Which of the following statements is CORRECT? a. If one firm has a higher debt ratio than another, we can be certain that the firm with the higher debt ratio will have the lower TIE ratio, as that ratio depends entirely on the amount of debt a firm uses. b. A firm's use of debt will have no effect on its profit margin on

Compute break-even point for The Lake Shore Inn

The Lake Shore Inn is trying to determine its break-even point. The inn has 50 rooms that it rents at $60 a night. Operatings costs are as follows: Salaries $7,200 per month Utilities 1,500 per month Depreciation 1,200 per month Maintenance 300 per month Maid Service

Financial ratio analysis for hotel in Costa Mesa, California

See attached files. Prepare a analysis of Situation 9.6 In your financial analysis, discuss the findings from your calculations and how they effect the organization. Your analysis should be based on the calculation of the following financial ratios: Occupancy percentage Cost of labor percentage for rooms and F&B

Werner Company: dividends, cash for purchases, net income, cash flow, ratios

1. The retained earnings balance of Werner Company was $46,800 on January 1, 2005. Net income for 2005 was $26,480. If retained earnings had a credit balance of $21,000 after closing entries were posted on December 31, 2005, and if additional stock of $13,000 was issued during the year, dividends paid during 2005 were: a.

Wamser Company: Prepare Selected Ratios

The following information pertains to Wamser Company: Cash $ 40,000 Accounts receivable 125,000 Merchandise inventory 75,000 Plant assets (net) 360,000 Total assets $600,000 Accounts payable $ 55,000 Accrued taxes and expenses payable 25,000 Long-term debt 120,000 Common stock ($10 par) 160,000 Paid-

Unique Boutique balance sheet: Calculate the current ratio and liquidity

September 30 (in thousands) 2007 2006 Current assets Cash and short-term deposits $2,574 $1,021 Accounts receivable 2,347 1,575 Inventories 1,201 1,010 Other current assets 322 192 Total current assets $6,444 $3,798 Current liabilities $5,303 $4,008 Instructions (a) Calculate the current ratio for Unique Boutique