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Financial Ratios

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 & break-even point in dollar sales

The Tremont Company makes and sells two products, as follows: For product A:sales price per unit is $40, Variable cost is 30, contribution margin per unit is $10. For Product B: sales price per unit is $100, Variable cost per unit is 60, contribution margin per unit is $40. The Tremont Company expects to incur annual f

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

Debt ratio: Charter Enterprises

Various capital structures: Charter enterprises currently has $3 million in total assets and is totally equity-based. It is contemplating a change in capital structure. (Note: The amount of total assets would not change.) a. Compute the amount of debt that would be outstanding if the firm were to shift to a debt ratio of 5

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

Finding the Break-Even Point and Contribution Margin

Sammy's Salsa, Inc. sells a single product. This year, 10,000 units were sold resulting in $65,000 of sales revenue, $30,000 of variable costs, and $17,500 of fixed costs. Find: a) The number of units that must be sold annually to achieve $52,500 of profits b) The break even point c) The contribution margin.

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

Haywood and More: PE Ratio after extra cash dividend

20. Haywood and More have a market value balance sheet as shown below. The firm currently has 5,000 shares of stock outstanding at a market price per share of $35.40. Net income is $9,500. market value balance sheet excess cash $8000 debt 0 other assets $203,000

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.

Conversion Ratio and Conversion Price

Diamond Drill Inc. has 150,000 shares and 15,000 warrants outstanding. A warrant holder can purchase a new share of stock for five warrants and $5.00 per warrant. The stock is currently selling for $27 per share. a) The holder of a $1,000 face value bond can exchange the bond any time for 25 shares of stock. The conversion r

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

Current ratio measure

Hi could you please assist me with these 2 questions? 1. If you are just looking at the 2.15 current ratio for one company does not provide a clear enough picture. What if the industry average is 4.0 and then what does that tells us about the company? 2. From a liquidity stand point, is it better to put a large amount of

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

Sharpe Ratio Questions

Field A Field B Field C Field D Field E Results 10 Year annual return Standard deviation Expected return Standard deviation Sharpe ratio Bledsoe S&P Index Fund 12.41 16.04 17 65 16.80907692 Bledsoe Small Cap Fund 17.05 19.64 17 65 16.73769231 Bledsoe Large Company Stock Fund 11.93 15.71 17 65 16.8164615

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