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Financial Ratios

Financial Statement Analysis - Profitability

I need your help with answering the lettered questions for each problem in the following problem sets: ? 4.11 Analyzing Operating Profitability ? 4.14 Calculating and Interpreting Accounts Receivable and Inventory Turnover Ratios ? 4.15 Calculating and Interpreting Fixed Asset Turnover Ratios ? 4.18 Calculating and Interp

Construct the current assets section

It is as follows: Construct the current assets section of the balance sheet from the following data. (Use cash as a plug figure after computing the other values.) Yearly sales (credit................$720,000 Inventory turnover..................6 times Current liabilities....................$105,000 Current ratio.......

Practice Questions

Can someone please help me with the following practice questions? 1. Most business enterprises in the United States are A) proprietorships and partnerships. B) partnerships. C) corporations. D) government units. 2. Which of the following would not be classified as a long-term liability? A) Current maturities of long-t

Calculating Break Even of the Workshops

Training Revenue (200 x 20 x $300) $1,200,000 Less Expenses: Trainer costs (200 x 2 x $1500) 600,000 Manager's Salary 120,000 Training officer 90,000 Administrative staff 80,000 Utilities/phone costs 20,000 Manuals for participants 120,000

Five procedures followed by The Beat Company

E8-5 Listed below are five procedures followed by The Beat Company. 1. Several individuals operate the cash register using the same register drawer. 2. A monthly bank reconciliation is prepared by someone who has no other cash responsibilities. 3. Ellen May writes checks and also records cash payment journal entries.

Funds Flow and Ratio Analysis

I am struggling with this question can you describe the primary difference between "funds flows" analysis and ratio analysis. Which analysis technique is preferred and why?

Accounting

The comparative balance sheet of a company at October 31, 2009 for the years 2009 and 2008, and the income statements for the years ended October 31, 2008 and 2009, are presented on the following page. Balance Sheet October 31 Assets 2009 2008 Cash $ 34,324 $13,050 Accounts receiva

Debt Ratios and EBITDA Coverage

1. A company has a total asset turnover ratio of 3.5X and net annual sales of $42.00 million, if a company has $3 million of total debt on its balance sheet, what would the debt ratio? 2. Suppose we pay 10% annual interest on our outstanding debt. If we have a total operating cost (including depreciation and amortization) equ

Horizantal & vertical analysis and Ratios

1. Prepare horizontal and vertical analyses. The comparative balance sheets of Philip Morris Companies, Inc. are presented here. PHILIP MORRIS COMPANIES, INC. Comparative Balance Sheets December 31 ($ in millions) Assets 2004 2003 Current assets $25,901 $21,382 Property, plant, and equipment (net) 16,305 1

Dependent variable

Identify the level of dependent variable measurement (nominal, ordinal, interval, or ratio) implied by the statement. 1. You asked congressmen if the money they have received from PACs is more than $100,000, between $50,000 and $100,000, or less than $50,000. 2. You asked congress about the primary source of their PAC

Compare Bailey and Brothers to the industry using ratio analysis

Bailey and Brothers has applied for a loan from the Me Too Bank in order to invest in several potential opportunities. In order to evaluate the firm as a potential debtor, the bank would like to compare Bailey and Brothers to the industry. The following are the financial statements given to Trust Us Bank See Attachment - Must

Calculations for Financial Ratios

4.2 Liquidity ratios: Flying Penguins Corp. has total current assets of $11,845,175, current liabilities of $5,311,020, and a quick ratio of 0.89. What is its level of inventory? 4.6 Leverage ratios: Breckenridge Ski Company has total assets of $422,235,811 and a debt ratio of 29.5 percent. Calculate the company's

Accounting Principles: Ratio Calculations

Scully Corporation's comparative balance sheets are presented in the attached file. Scully's 2008 income statement included net sales of $100,000, cost of goods sold of $60,000, and a net income of $15,000. Instructions: Compute the following ratios for 2008. (a) Current ratio. (b) Acid-test ratio. (c) Receivables turnover

Effect of Transactions on Various Financial Ratios

Effect of transactions on various financial ratios Indicate the effect that each transaction/event listed here will have on the financial ratio listed opposite it, and provide an explanation for your answer. Use + for increase, - for decrease, and (NE) for no effect. Assume that current assets exceed current liabilities in al

Choosing Financial Targets: Evaluating Capital Structure

Bixton Company's new chief financial officer is evaluating Bixton's capital structure. She is concerned that the firm might be over-leveraged, even though the firm has larger-than-average research and development and foreign tax credits when compared to other firms in its industry. Her staff prepared the industry comparison show

Functional Area Interrelationships paper (Kudler Fine Foods)

Based on the Virtual Organization (please see BELOW), I need help with a 250- to 300 word paper in which I need to complete the following: Identify and explain the steps of the collaboration process among the functional areas that needs to be employed to achieve organizational goals, and prepare an action plan to implement th

Conducting a Break-Even Analysis

Conduct Break-Even Analysis in the following two scenarios: 1. R Squared is a mobile diagnostic imaging company that performs MRI scans of patients at hospitals and clinics that cannot afford their own scanners. General Hospital has contacted R Squared regarding a contract for services. Accountants at R Squared have calcula

Return on investment (ROI) and residual income

See attachment. Return on investment (ROI) and Residual Income Kirsi products is a decentralized wholesaler with four autonomous divisions. The divisions are evaluated on the basis of ROI, with year-end bonuses given to divisional managers who have the highest ROI. Operating results for the company's East division for la

Ratio analysis & vertical analysis

3) Exercise E15-11 Scully Corporation's comparative balance sheets are presented below. SCULLY CORPORATION Balance Sheets December 31 2008 2007 Cash $ 4,300 $ 3,700 Accounts receivable 21,200 23,400 Inventory 10,000 7,000 Land 20,000 26,000 Building 70,000 70

Sharpe ratio calculations....

A measure of risk adjusted performance that is often used in practice is the Sharpe ratio. The Sharpe ratio is calculated as the risk premium of an asset divided by its standard deviation. a.The standard deviations and returns for the funds over the past 10 years are listed below. Assuming a risk free rate of 4%, calculate t

Health Finance

You have just been selected as the new Chief Executive Officer of OHC Medical Center, a 600-bed hospital in the suburbs of a city with a population of over 1.5 million. The former CEO, Ms. Andrews, was terminated because of her inability to engage in key managerial functions. Ms. Andrews was unable to effectively use financial

Accounting Multiple Choice Practice Set: Ratios, Adjustments, Balances, Ect.

1. Zelma Company's last financial statements provided the following ratios: Current ratio 3:2 Quick ratio 1:2 Accounts receivable turnover 9.0 times Inventory turnover 8.0 times Net income percentage 12.5% Return on equity 22.6% Return on assets 9.8% To the nearest day, what is the operating cycle for Zelm

Spread Sheet Problem

Spread sheet problem. The following are the expected revenue and costs from developing two different computer products over a five year period. At the end of five years, each system will have to be replaced. The salvage value for each is the same at $50,000. The fixed costs over the five year period for system 1 is $1,000,

Point of Indifference

This analysis is for graduate level Operations Managment course. Consider the mathematical model for point of indifference: Company XYZ is considering a location move. The selling price of $10 per customer will stay the same. The company's goal is to make money now and in the future. Current State: Fixed Cost $2,000, Va

Ratio Compuation and Analysis

Given the financial statements for Jones Corporation and Smith Corporation shown here: a. To which one would you, as credit manager for a supplier, approve the extension of (short-term) trade credit? Why? Compute all ratios before answering. b. In which one would you buy stock? Why?

An Analysis of Kevin's Bicycle Shop

Ken's Bicycle Shop sells mountain bikes. For purposes of a cost-volume-profit analysis, the shop owner has divided sales into two categories, as follows: Product Category Sales Price Invoice Cost Sales Commissions High quality $700 $375 20% of sales Medium quality 500 235 20% of sales The shop antici