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Financial Ratios

Return on Equity / Growth Rate

Three companies have the following results during the recent period K L M Net profit margin 0.04 0.06 0.1 Total assets turnover 2.2 2 1.4 Total assets / equity 2.4 2.2 1.5 a. Derive for each its return on equity based on the three DuPont components. B.Given the

Analyzing the Financial Performance of a Division

Details: You have been given the financial statements and asked to analyze the financial performance of your division. Other managers have suggested you use financial ratios in your analysis. What are financial ratios? Which ratios might you use in your analysis? List them and explain what information they provide. How would you

Financial Ratio Calculation and Trend Analysis

Evaluate Barnes & Noble's financial performance for 2007 and 2008 using financial ratios. Calculate the following ratios for each year: a) Current b) Debt c) ROE (Return on Equity) d) Days receivable Be sure to discuss the trend for each of the above ratios. See link for report:

Margin of Safety Calculations

The following is Arkadia Corporation's contribution format income statement for last month: Sales $1,200,000 Variable expenses 800,000 Contribution margin 400,000 Fixed expenses 300,000 Net operating income $ 100,000 The company has no beginning or ending inventories and produced and sold 20,000

Assume the likelihood that any flight on Northwest Airlines

Assume the likelihood that any flight on Northwest Airlines arrives within 15 minutes of the scheduled time is .90. We select four flights from yesterday for study. a. What is the likelihood all four of the selected flights arrived within 15 minutes of the scheduled time? b. What is the likelihood that none of the selected fli

Contribution margin ratio and break-even point

The following information describes a product expected to be produced and sold by Hadley Company: Selling price $80 per unit Variable costs $32 per unit Total fixed costs $630,000 Required: (a) Calculate the contribution margin ratio. (b) Calculate the break-even point in dollar sales. (c) What dollar amount o

Ratios and analysis of performance (Hershey & Tootsie)

Compare two companies in the candy industries, and help with the following: (Any) ? Current ratio ? Acid-test (quick) ratio ? Inventory turnover ? Accounts receivable turnover ? Debt ratio ? Return on net sales ? Return on total assets ? Return on common stockholder's equity ? Earnings per share And 2 pages of

Ratio Calculations - Income Statement

Question 2 (4%) The following items have been pulled from the Income Statement and the Balance Sheet. Use the data to calculate the ratios below and compare them to the industry. The ratio is "better" or "worse" is insufficient, tell me why. Balance Sheet Items Income Statement Items

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

Expansion and Desired Debt Ratio: Altman Co. Example

The Altman Co. has a debt ratio of 33.33% and it needs to raise $100,000 to expand. Mangement feels that an optimaldebt ratio would be 16.67%. Sales are currently $750,000, and the total assets turnover is 7.5. How should the expansion be financed to achieve the desired debt ratio? a) 100% equity b) 100% debt c) 20% debt

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?


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

Calculating Financial Ratios from Data

Use the financial data shown below to calculate the following ratios for the current year: (a) Current ratio. (b) Acid-test ratio. (c) Accounts receivable turnover. (d) Days' sales uncollected. (e) Inventory turnover. (f) Days' sales in inventory.

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