Explore BrainMass

Financial Ratios

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

Do managers want contribution margin to be a bigger or smaller figure? Why?

Your CEO has limited knowledge of management accounting but of course, is vitally interested in forecasting profitability under different scenarios. He asked you, the management accountant, to begin your report by answering a few basic questions he's always wondered about. He has also given you some data to review and has asked

Breakeven Analysis of Boston Beer Company

Prepare a breakeven analysis for Boston Beer company including definitions of the following: - A unit of measurement for the activity - Revenue per unit for the activity - Variable costs for the activity - Fixed costs for the period in the activity Report should include: - Name and nature of the organization - The a


Please answer it. The comparative statements of Dillon Company are presented below DILLON COMPANY Income Statement For Year Ended December 31 2009 2008 Net sales (all on account) $600,000 $520,000 Expenses Cost of goods sold 415,000 354,000 Selling and administrative 120,800 114,800 Interest expense 7,800 6,000 In

Robbins Company Analysis of Given Ratios

(Analysis of Given Ratios) Robbins Company is a wholesale distributor of professional equipment and supplies. The company's sales have averaged about $900,000 annually for the 3-year period 2009-2011. The firm's total assets at the end of 2011 amounted to $850,000. The president of Robbins Company has asked the contr

P 11.6 & 11.12: Common size balance sheet for Intel, Ratios for Whittaker, Inc.

See attached files. 11.6 - Prepare a common size balance sheet for Intel, 2008 Solve the requirements of Problem 11.5 for the year ended December 27, 2008. 11.12 - Analytical case to complete an income statement and balance sheet using financial ratio data. Partially completed financial statements for Whittaker, Inc., fol

The Jumbo Group: Basic Ratio Analysis, Limitations of Ratios

See attached file. Financial Statement Analysis Briefing Note Financial Statements - JUMBO GROUP The JUMBO GROUP has traded successfully for a number of years.. The Finance Department of ABC is preparing draft financial statements for the year ended 31st December 2009 for review by the company's Board of Directors. Th

Calculations for Break Even Point

The information that follows was obtained from the account records of Gladstone Mfg. during a period when the company sold 100.000 units. Sales $8,800.000 Variable Costs 2,400,000 Fixed Costs 6,016,000 Required: A. Compute the company's per unit contribution margin and break even point. B. How many units must Glads

What is ratio analysis?

Please help answer the following questions in at least 200 words. What is ratio analysis? What ratios do you think are most valuable to top managers in organizations like General Electric? in Lucy's Organic Chicken Farm? in an international (non-profit) relief organization like Samaritan's Purse?

Determining Expected Payout Ratio: MicroSemiSun System

MicroSemiSun System expects to have a net income of $800,000 during the next year. Its target and current capital structure is 40% debt and 60% common equity. The Director of Capital Budgeting has determined that the optimal capital budget for next year is $1.2 million. If strategic uses the residual dividend model to determine

Breakeven Point Calculate Variable Costs Per Meal

O Calculate the breakeven point using the following information: The fixed costs associated with providing the food is $150,000. The variable cost per meal is $1.00. The price of meals is $4 per meal.

Financial and Ratio Analysis for Home Depot, Inc.

Develop a Financial Analysis for Home Depot, Inc. 1- Calculate the following financial ratios/numbers as the Starting point of your analysis. (Note: there are five categories with a total of 19 ratios/numbers. LIQUIDITY (Short-term solvency) Current ratio Quick/Acid Test Ratio Cash Ratio Financial Leverage (Long-term

Managerial Finance: Financial Ratios

Details: Use the annual information found that can be found by clicking here to answer this assignment. Calculate the following asset activity ratios for the end of 2005: Average Collection Period Inventory Turnover Total Asset Turnover To receive full credit on this assignment, please show all work, including formulae an


Question 35 At the end of 2009, Gilley Company implemented a new labor process and redesigned its product with the expectation that input usage efficiency would increase. Now, at the end of 2010, the president of the company wants an assessment of the changes on the company's productivity. The data needed for the assessment are


Evaluate financial performance for 2007, 2008, and 2009. using financial ratios. Calculate the ratios for each year. Reports to use Annual Reports:

Planning and Budgeting

Andre has asked you to evaluate his business, Andre's Hair Styling. Andre has five barbers working for him. (Andre is not one of them.) Each barber is paid $9.90 per hour and works a 40-hour week and a 50-week year, regardless of the number of haircuts. Rent and other fixed expenses are $1,750 per month. Hair shampoo used on all

Break-even analysis and Pricing

Imagine that you are an entrepreneur at a location in the United States. You are planning to enter the gourmet vegetarian burger market. [1] Using break-even analysis, you want to determine at what volume of burger sales will you start to make money. One of your partners developed an expected unit sales forecast. You want

Break-Even Analysis/Variances/Conversion Costs

I need help with the following problems. Please explain how you arrived at each calculation so I have a better chance of understanding the process. Carlton Corporation manufactures paper shredding equipment. You are requested to "audit" a sampling of computations made by Carlton's internal accountants via your independent re

Step-by-step answer to break even analysis

C-V-P Analysis: Jesse, Inc., located in Mesa, Arizona, manufactures high-end baby chairs. The firm's cost accountant, Lisa, has been assigned by the CEO to determine how many baby chairs Jesse, Inc., needs to make and sell in order to break even. She is given the following data: Determine how many baby chairs Jesse, Inc.,

Multiple choice: contribution margin (Sutton Company)

I have a multiple choice problem I need help with: Sutton Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $6 of variable costs to make. During April, 1,000 drives were sold. Fixed costs for April were $2 per unit for a total of $2,000 for the month. How much is the contribution


1. A company's ability to pay its suppliers on time is best measured by its a. Current ratio b. Operating margin c. Asset turnover ratio 2. A company's profitability on shareholders' investment is measured by its a. Quick ratio b. Return on equity c. Debt/equity ratio d. Asset turnover ratio 3. For the year

Administrators at a university are planning to offer a summer seminar...

1) Administrators at a university are planning to offer a summer seminar. It costs $3000 to reserve a room, hire an instructor, and bring in the equipment. Assume it costs $25 per student for the administrators to provide the course materials. If we know that 20 people will attend, what price should be charged per person to brea