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# Financial Ratios

### Open Systems Theory

I need help in writing a 2 to 3 page paper on Introduction to Open Systems Theory. I am totally lost and need assistance in getting started with this assignment. Please see attachment.

### E24-4 After ratio computation and analysis, which company is a better risk?

*E24-4 (Ratio Computation and Analysis; Liquidity) As loan analyst for Utrillo Bank, you have been presented the following information: Toulouse Co. Lautrec Co. Assets Cash \$ 120,000 \$ 320,000 Receivables 220,000 302,000 Inventories 570,000 518,000 Total current as

### Ethics, compliance, and ratios analysis - Wal-Mart

Evaluate your selected organization's financial performance over the past two years using financial rations. Calculate the following rations for each year: 1. Current 2. Debt 3. ROE (return on equity) 4. Days receivables Discuss the trend for each ratio and what it tells you about the organization's financial health.

### Computing a Break Even for New Skis

Please see the attached file for the complete problem description Ski-YA! Is Colorado-based company that sells high-performance ski equipment. When it comes to the serious business of sliding downhill, the Ski-YA! Dudes of Colorado don't trouble themselves with petty categories: to them, all alpine snow equipment is summed up

### Westwood Corporation: Compute Ratios

42. From the following information, compute the ratios indicated and place the proper numbers in the spaces provided. Assume the average for the year is the same as the ending balances for the balance sheet accounts. Round percentages to one decimal place, and show your work. Westwood Corporation Balance Sheet December 31,

### Cadet Corporation: Compute 11 ratio analyzes

Selected year-end financial statements of Cadet Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2008, were inventory, \$56,900; total assets, \$219,400; common stock, \$85,000; and retained earnings, \$52,348.) CADET CORPORATION Income Statement For Year Ended December 31, 2009

### Description of Current Ratio

The current ratio in the company, for which you are a financial analyst, is 3 to 1. The average for other firms in the industry is 1.6 to 1. Management has asked you to evaluate the company's ratio, and explain why it is nearly twice the industry's average. What factors are responsible for the difference? Are we better off than

### Effect on Firm's Return on Net Operating Assets

A firm earns a profit margin of 3.8 percent on sales of \$435 million and employs net operating assets of \$150 million to do so. It considers adding another product line that will earn a 4.8 percent profit margin with an asset turnover of 2.3. What would be the effect on the firm's return on net operating assets of adding the ne

### Auditor's use of ratios in analytical procedures. Calculate and explain use of one ratio.

Auditors use several financial ratios during the audit process as well. Can you provide the purpose of one of the ratios used for analytical procedures? Please provide the calculation for the ratio and explain how an auditor might use the information in order to understand a client's business. The current ratio is analyzed.

### The cost ratio in the retail method is found by the cost of goods available for sale at cost divided by:

1. The cost ratio in the retail method is found by the cost of goods available for sale at cost divided by: a.net sales. b.ending inventory at retail. c.cost of goods available for sale at retail. d.net purchases at cost. e.none of these 2. Jill Hartman earns \$750 per week plus 3 percent of

### Industry Analysis

See Attachment (All three tabs) 1) Find the most recent three year financial data on US Steel, Microsoft, Disney, and Home Depot. Provide three years of ratios for each: Retention ratio US Steel Microsoft Disney Home Depot Year 1 (most current) Year 2 Year 3 Net profit margin US Steel Microsoft D

### Ratio Transaction Effects

Indicate the effect of each transaction on the ratio (Time Interest Earned) (Debt ratio) (Debt to equity ratio) and (Debt to Tangible net worth). Use + to indicate increase and - to indicate decrease and 0 for no effect. Assume an initial time interest earned of more than 1, and a debt ratio, debt/equity ratio, and total debt to

### Sam's Pizza Budget Break-Even and Profits

Week Three Problems 1) Sam's Pizza is a restaurant business in Cincinnati. His income statement for 2006 shows the following: Net Sales \$ 70,000 Cost of Goods Sold \$ 34,000 Selling, general and admin expenses \$ 20,000 Operating Income \$ 16,000 Assume that Sam's Pizza had a 10% increase in sales in 2007 and t

### Ratio analysis for Home Depot

At the time that of its 10-Q filing of financial statements for the first half of its January 2002 fiscal year, Home Depot's shares traded at \$50 per share. The following are summaries from those financial statements. Balance Sheet, July 29, 2001 (in millions of dollars) Financial liabilities 1,320 Oper

### Feather Friends: CM ratio, breakeven, leverage, income statement in 2 formats

Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for \$20 per unit. Variable costs are \$8 per unit, and fixed costs total \$180,000 per year. Required: Answer the following independent questions: 1. What is the product's CM ratio? 2. Use the CM ratio to determine the break-even point in sales d

### Trend and ratio analysis

Perform trend and ratio analysis on the following: 1. Current assets 2. Fixed assets 3. Current liabilities 4. Long-term liabilities 5. Owner's equity 6. Sales revenue 7. EBIT 8. EPS Project these trends 3 years into the future. Please send in excel and word.

### Forsythe Co manufacturing Statement; ratio analysis

See attached files for full problems. Problem #1 Using the given information, prepare the manufacturing statement for Forsythe Company for the month ended June 30. Problem #3 Using the given comparative calendar-year financial data for the company, calculate: (1) Accounts receivable turnover for 2005. (2) Days' sal

### Gray Computer Co: Calculate the Amount of Cash

How much cash does Gray Computer Co. have if the firm has a current ratio of 2.5, a quick ratio of 1.2, and current liabilities of \$12,000? Gray's credit sales are \$98,000 and its average collection period is 40 days (Assume 365 days per year.)

### Financial Analysis of Merck & Co: profit, liquidity and leverage ratios

See attached file. Based on the attached financial reports, I need a brief financial analysis of Merck & Co. addressing specifically their profit, liquidity and leverage ratios.

### Capacity Planning: Smithson Cutting & Markland Manufacturing

S7.9. Smithson Cutting is opening a new line of scisors for supermarket distribution. It estimates its fixed cost to be \$500.00 and its variable cost to be \$0.50 per unit. Selling price is expeted to average \$0.75 per unit. a) What is Smithson's Break-even point in units ? b) What is the break even point in dollars ? S7

### Computing Intrinsic Price-To-Book Ratio

A firm with a book value of \$15.60 share and 100 percent dividend payout is expected to have a return on common equity of 15 percent per year indefinitely in the future. Its cost of equity is 10 percent. a) Calculate the intrinsic price-to-book ratio b) Suppose this firm announced that it was reducing its payout to 50 percen

### Dillon Company: Compute 13 separate ratios

See attached file also. P18-6A The comparative statements of Dillon Company are presented below. DILLON COMPANY Income Statement For the Year Ended December 31 2009 2008 Net sales (all on account) \$600,000 \$520,000 Expenses Cost of goods sold 415,000 354,000 Se

### Target Corporation: Compute various ratios and analyze

I'm using the Target Corporation and I need help computing the Current Ratio, Inventory turnover ratio, Accounts receivable turnover ratio, debt to equity, return on assets, return on equity, and gross margin on sales. The numbers are: Current Ratio: 1.80, Inventory Turnover Ratio: 6.79, Accounts Receivable Turnover Ratio: 1.47,

### Forward P/E, Growth Rate, Dividend Payout Ratio & Target Price

Kleenex brand trading at \$63.20 down to a near low from 52-week high of \$72.79. The trailing p/e of 15 was low by historical standards. This is as cheap as it gets for this company claimed a portfolio manager. In 2007, Kimberly Clark grew sales by 9 percent compared with just over 5 percent the year before. Even though it absorb

### Company Loss and Profit Accounting

1. Entries of \$ 700 in the discount received account had not been entered in the creditor's ledger. During the year a machine was sold for \$ 1000. There was only one entry made and it was a credit in the bank account. What is the balance on the suspense account? A. \$ 1700 credit B. \$ 1700 debit C. \$ 2700 credit D. \$ 2700 d

### Price to book ratio

A firm reported \$250 million in total assets and \$140 in debt. It had no interest-bearing securities among its assets. In the income statement is reported \$560 million in sales; the firm's 80 million shares are traded at 47 each. What is the price to book ratio (P/B)/

### Calculate Ratios for PepsiCo: current ratio in vertical and horizontal formats

See file attached. Calculate the following for PepsiCo, Inc. and show your work: o The Current Ratio for 2005 o The Current Ratio for 2004 o Two measures of vertical analysis-for example, compute the current assets divided by total assets for each year, and express your result as a percentage o

### Pocca Co Ratio Analysis: compute 19 ratios

See attached file. Use the financial statements for Pocca Company to calculate the following ratios for 2006 amd 2005. The following must be done for both years. Attached is the Balance Sheet & Statements of Income and Retained Earnings a. Working Capital b. Current Ratio c. Quick Ratio d. Accounts receivable tur

### Important information about Ratio computation and analysis

(Ratio Computation and Analysis; Liquidity) As loan analyst for Utrillo Bank, you have been presented the following information. Toulouse Co. Lautrec Co. Assets Cash \$ 120,000 \$ 320,000 Receivables 220,000 302,000 Inventories 570,000 518,000

### Ratio computation and analysis

Given the financial statements for Jones Corporation and Smith Corporation: a. To which company 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?