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Financial Ratios

The Number of Pints of Fruit Sold at the Break-Even Point

Matsunaga Farms produces strawberries and raspberries. Annual fixed costs are $15, 600. The cost driver for variable costs is 'pints of fruit produced'. The variable cost is $0.75 per pint of strawberries and $0.95 per pint of raspberries. Strawberries sell for $1.10 per pint, raspberries for $1.45 per pint. Two pints of strawbe

St. Martin Hospital Break Even Point

St. Martin Hospital has overall variable cost of 20% of total revenue and fixed costs of $40 million per year. 1. Computer the break even point expressed in total revenue. 2. A patient-day is often used to measure the volume of a hospital. Suppose there are to be 40,000 patient-days next year. Compute the average daily re

Determine the Contribution Margin for Nixon Company

1. In the month of September, Nixon Company sold 800 units of product. The average sales price was $30. During the month, fixed costs were $7,200 and variable costs were 60% of sales. Instructions (a) Determine the contribution margin in dollars, per unit, and as a ratio. (b) Using the contribution margin technique, compute

Harbor Co had sales of $1,500,000 for the year ended in 20x4 an asset turnover ratio of 2 for the same period, and a return on invesment of 6%. What was Harbor's net income and investment base? Assets Net income a. $500,000 $30,000 b. 750,000 45,000 c. 1,000,000 60,000 d. 1,500,000 90,000

1. Harbor Co had sales of $1,500,000 for the year ended in 20x4 an asset turnover ratio of 2 for the same period, and a return on invesment of 6%. What was Harbor's net income and investment base? Assets Net income a. $500,000 $30,000 b. 750,000

TCB financial reviewed by lending bank: Issues with current ratio

Upon reviewing the audited statements submitted by TCB, the lending bank noted that the current ratio for the company of 4:1 is too high. Please explain the bank's remark to the exasperated management. What is the industry standard for current ratio? Is high current ratio healthy?

Camping USA Inc: Analysis in Excel of financial risks, break even point, ratios

Camping USA Inc. has only been operating for 2 years in the outskirts of Albuquerque, New Mexico, and is a new manufacturer of a top-of-the-line camping tent. You are starting an internship as assistant to the chief financial officer of the company, and the owner and CEO, Tom Charles, has decided that this is the right time to k

Finanical Problem

See attachments Calculate 7 ratios for two years for each category. Show the ratios in a table similar to this one below: DEER PARK FINANCIAL RATIOS 20XX 20XX Solvency Ratios Solvency Ratio 1 0.60 0.51 Solvency Ratio 2 0.38 0.24 Liquidity Ratios Liqui

Break even calculations and financial ratios

Please help with the following calculations. ' 1) If the sales price per unit is $100, the unit variable cost is $75 and total fixed cost are $150,000 then the break even volume in dollar sales is? 2) Company produce dolls. Each doll sells for $20.00. Variable cost is per unit total is $14.00 of which is direct material and

Ratio Analysis Example Problem

Please calculate the average total assets, net income margin, sales and ROI based on the provided information (see attachment).

Two Not Mutually Exclusive; Breakeven Point

If two events are NOT mutually exclusive, then - their probabilities can be added. - they may also be collectively exhaustive. - they cannot have a joint probability. - the list of outcomes includes every possible outcome. What is the formula for the break-even point of a simple profit model?

Fixed and Variable Costs for specialty widgets; breakeven point

You have just become product manager for a line of specialty widgets. Your Fixed Costs (FC) for running your plant are $250,000 a month. This includes salaries, insurance, rent, amortized capitalization of equipment, etc. Your Variable Costs (VC) per unit will, of course, vary. You have looked at your hourly salaries, your

Produces Large Quantities of a Standardized Product

PROBLEM 20-3A Crystal Company produces large quantities of a standardized product. The following information is available for its production activities for March: Raw materials Beginning inventory $ 26,000 Raw materials purchased (on credit) 255,000 Direct materials used (172,000) Indirect materials used (81,000) En

Operating leverage problem with Bozeman Co. and Billings Co.

Operating leverage problem with Bozeman Co. and Billings Co. Reference Text below: Can you indicate what applies to my ques above (if you can) Any explanation or guidance much appreciated. Cost Structure and Operating Leverage Cost structure refers to the relative proportion of fixed versus variable costs

Fin Accounting MBA

One problem caused by using turnover ratios to calculate asset balances is that it can lead to volatility in projected ending balances. What might an analyst do to reduce the "sawtooth" pattern caused by using turnover ratios?

Operating Leverage and Break Even Point

Exercises EXERCISE 4-1. Operating Leverage [LO 5] John Diaz owns Pacific Electric, a large electrical contracting firm that provides services to building construction projects. The company has 2,000 employees and operates in three western states. Recently the company experienced large losses due to a downturn in the economy and

Risk based capital ratios

Solve the following problem A large Bank Holding Company has Tier-1 capital of $40 billion and Tier-2 capital of $20 billion and risk weighted assets of $550 billion. Calculate the risk based capital ratios and determine whether they meet the required standards.

Reserve Requirement Ratio

Assume that the reserve requirement ratio is 12% and that the Fed uses open market operations by selling $200 million worth of Treasury securities. Assuming that banks use all funds except required reserves to make loans and that the public does not store any cash, the money supply should____________by about__________.

Accounting

3. Espinola Corporation's most recent balance sheet and income statement appear below: BALANCE SHEETS 2006 2005 ASSETS Cash & equivalents $320,000 $180,000 Accounta receivable 220,000 240,000 Inventory 140,000 130,000 Prepaid expenses 20,000 20,000 Total current assets 700,000 570,000

Short answer question

What are three primary roles of the U.S. Securities and Exchange Commission (SEC)? How does the Sarbanes-Oxley Act of 2002 augment the SECâ??s role in managing financial governance? Do you think businesses became more ethical after Sarbanes-Oxley was passed? Provide examples to support your answer ---------------

Ratios for Garney Company for 2010

The financial information below was taken from the annual financial statements of Garney Company: 2010 2009 Current assets $192,000 $212,000 Current liabilities 80,000

For three companies, recommend a capital structure; discuss debt vs equity

The background readings of this Module provide plenty of information regarding both the issue of the capital structure decision and the concept of the weighted average cost of capital. Consider three companies: Borders, Clorox, and Amazon. Reflect on the nature of the business of these three companies. You are recommended to

Questions About Financial Ratios

Financial ratios are important to the understanding of the financial health of a company. You and your colleagues work for a financial services firm. You are discussing the merits of the various financial ratios. Identify 4 financial ratios, and state what they tell you about a firm and why it's important to understand what thes

Financial Analysis: Boeing Raytheon Lockheed Martin

Create common size statements for Boeing, Raytheon and Lockheed Martin for 2007, 2008 and 2009. Prepare a financial analysis, computing all the classic ratios (see list below). Prepare an executive summary with overall assessment. Characterize the strength of the company, along with the level of risk assumed. Discussio

Thorn Company: Ratio analysis

See attached file. Use the financial statements for Thorn Company to calculate the following ratios for 2008 and 2007 a. working capital b. current ratio c. quick ratio d. accounts receivable turnover (beginning receivables at Jan. 1, 2007, were 47,000). e. average number of days to collect accounts receivable f. Inve

Forecasted dividend payout ratio

Portland Plastics Inc. has the following data. If it follows the residual dividend policy, what is its forecasted dividend payout ratio? Capital budget $12,500 % Debt 40% Net income (NI) $9,250 a. 19.68% b. 23.65% c. 18.92% d. 17.22% e. 15.70%

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

Total asset turnover/price earnings ratio

1. Dell had net sales of $35,404 million. Its average total assets for the period were $14,502 million. Dell's total asset turnover equals: 0.40. 0.35. 1.45. 2.44. 2. The price-earnings ratio is calculated by dividing: market value per share by earnings per share. earnings per share by market valu