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Financial Ratios

Contribution Margin/Break-Even Calculations - Lucido Products

Lucido Products markets two computer games: Claimjumper and makeover. A contribution format income statement for a recent month for the two games appears below: Claimjumper Makeover Total Sales $30,000 $70,000 $100,000 Less variable expenses 20,000 50,000 70,000 Contribution margin $10,000 $20,000 30,000 Less fixed exp

You have taken the following information from a firm's financial statements. As an investor in the firm's debt instruments, you are concerned with its liquidity position and its use of financial leverage. What conclusions can you draw from this information?

You have taken the following information from a firm's financial statements. As an investor in the firm's debt instruments, you are concerned with its liquidity position and its use of financial leverage. What conclusions can you draw from this information? 2004 2003 2002 Sales $1,700,000 $1,500,000 1,000,000 Ca

Finance Problems

1. Why is interest expense said to cost the firm substantially less than the actual expense, while dividends cost it 100 percent of the outlay? 2. If the accounts receivable turnover ratio is decreasing, what will be happening to the average collection period? 3. Griffey Junior Wear, Inc. has $800,000 in assets and $200,00

Calculating Financial Ratios

NuWell Trading Ltd. a) Calculate 1. Current ratio 2. Inventory turnover 3. Interest Cover Ratio 4. Return on Ordinary shareholders' equity 5. Earnings per ordinary share 6. Price/earning ratio b) Based on the ratios computed, comment on NuWell's financial position and the attractiveness of its ordinary shares to investors.


Assuming that the current ratio is currently 2, which of the following actions will increase it? 1. Purchasing inventory with cash. 2. Purchasing inventory on short-term credit. 3. Paying off a short-term bank loan with long-term debt. 4. None of the above increase the current ratio. 5. All of

EPS and PE Ratio

Walker machine tools has 5 million shares of common stock outstanding. The current market price of Walker common stock is $42 per share rights-on. The company's net income this year is $15 million. A rights offering has been announced in which 500,000 new shares will be sold at $36.50 per share. The subscription price plus 10 ri

Compare and contrast standards and budgets, compute the variable overhead total, spending and efficiency variances for manufacturing overhead, compute the ROI and intermediate values using the DuPont approach, and create a cash budget

See attached file. 1. Compare and contrast standards and budgets. 2. Compute the variable overhead total, spending and efficiency variances for manufacturing overhead given the following information. Actual hours x1000, standard hours 900, standard rate $1.5/hours and actual rate $1.25/hour. 3. Given the following info


Indicate for each of the following items whether it would appear on a balance sheet (BS) or an income statement (IS). If a balance sheet item, is it an asset (A), a liability (L), or an owners' equity item (OE)? Assuming no additional investments by or distributions to owners, compute the missing amounts for companies X, Y

Debt to equity ratio

If your firm has a debt issue outstanding with 7 years to maturity at 87 percent of face value paying semi-annually at 6.5%, what is the cost of debt? Assume a 35% tax rate. Is there a debt to equity ratio that will maximize the value of the firm? Why or why not?

Planning & Budgeting for Andy Barber

Andy has five barbers working for him. Each Barber is paid $9.90/hr & works 40/hr week & a 50/wk year regardless of # of haircuts. Rent & other fixed expenses are $1750 per month. Hair shampoo used on all clients costs .40 per client. Assuming they are on ly doing haircuts the unit price is $12. 1 Find contribution margin per

Ratio and Cashflows

Apex Limited Income Statement For the Year Ended December 31 2006 2005 Net Sales $2,535,000 $2,412,000 Cost of goods sold 1,329,500 1,297,500 Gross profit 1,205,500 1,114,500 Selling/admin expenses 756,000

Walmart Strategic Audit

Walmart Stores, Inc: On Becoming the World's Largest Company (2002) I am doing a strategic audit on this case. I have done the EFAS, IFAS, and a partial TOWS Matrix that needs a couple of additions. I'd really appreciate it if someone could help me with the write up of the case. The strategic audit needs to be written in outline

GE and Tyco/Market to book ratios, etc.

Please use these companies: & Using each companies annual reports/financial information from; please help answering the following: 1. Divide each company's market capitalization by that company's shareholders' equity. This market-to-book ratio provides one measure of shareho

Healthcare related economics and accounting

1. In ratio analysis, an individual organization is usually compared to an appropriate industry average. How can one tell if the entire industry is doing poorly or well? 2. In deciding to continue (or discontinue) a service whose revenue do not cover total cost, which is more important in the short run, variable cost or fi


P15−2 Compute ratios from balance sheet and income statement. (SO 5) The comparative statements of Taylor Tool Company are presented below. Taylor Tool Company Income Statement For the Year Ended December 31 2006 2005 Net sales $1,818,500 $1,750,500 Cost of goods sold 1,011,500 996,000 Gross profit 807,000 754,

Brady Corporation - Financial Ratio Analysis

Brady Corporation is a leader in identification, safety, and material solutions. In 1998, the firm was hit hard by faltering foreign markets, so it embarked upon an aggressive campaign to redesign its cost structure. The firm believes this will help it to enhance future stockholder value. Brady follows the concept of Shareholder

Compute the analytical measures listed below

0. Ratio of fixed assets to long-term liabilities 1. Acid-test ratio 2. Current ratio 3. Working capital 4. Accounts receivable turnover 5. Rate earned on total assets 6. Rate earned on common stockholders' equity 7. Number of times interest charges earned 8. Earnings per share on common stock

Financial Ratios

For each category of financial ratios, give some examples of who would be likely to examine these ratios and why. Category 1.Liquidity Analysis ie-current Ratio, Quick Ratio, Net working capital 2. Profitability Analysis Ratios ie- Return on Assets,Return on equity, EPS, Profit Margin 3. Acti

The break-even point

The Bruggs & Strutton Company manufactures an engine for carpet cleaners called the "Snooper." Cost and revenue data for the "Snooper" are given below, based on sales of 40,000 units. Sales $1,600,000 Less: Cost of goods sold 1,120,000 Gross margin $ 480,000 Less: Operating expenses 100,000 Op

Various Components of Break-even Analysis

There are two ways to produce electric screwdrivers and each has a different cost structure though they could be sold for the same price: Process A Process B Unit sales price = $30.00 Unit sales price= $30.00 Unit variable cost = $15.00 Unit variable cost = $10.00 Fixed cost = $4,500 Fixed cos

Technical Knowledge of Accounting

Please provide help with the following questions: SCENARIO: You and your small group have been asked to create an informative slide presentation to managers, most of whom do not have a technical knowledge of accounting. QUESTIONS: 1. First, you will discuss key elements with top executives. 2, How will investor

Influence Chart and Spreadsheet

Constance's Vacation to New York Projected expenses broken down into 2 categories: "living expenses" (for food and lodging) and "vacation expenses" (for travel and internment). For planning purposes: plans to spend $90 per day for food and $ 170 per day for lodging. Travel costs a lump sum of $375 (including airli

Evaluating Financial Performance - R&E Supplies

Attached financial statements over the period 2002-2005 for R&E Supplies, Inc. A. Use these statements to calculate as many of the ratios in Table 2.2 as possible. B. What insights do these ratios provide about R&E's financial performance? What problems, if any, does the company appear to have?

Please provide answer and explanation in word format.

1. The Veblen Company and the Knight Company are identical in every respect except that Veblen is not levered. The market value of Knight Company's 6-percent bonds is $1 million. Financial information for the two firms appears below. All earnings streams are perpetuities. Neither firm pays taxes. Both firms distribute all earni

Ratio analysis - Liquidity ratios // Garcia Company

The financial statements of Garcia Company include the following data: Please see attached document. Compute the inventory turnover ratio for 2006. Round answer to two decimal places. Compute the debt to total assets ratio for 2006. Round answer to the nearest percentage. Use all the debt to calculate the ratio.

What we can do to improve our ratios so we can qualify for a loan?

"Who can figure bankers?" Pehr Weisengraf mumbled as he returned to the office of his small candy manufacturing business, Professional Confectioners. "They're willing to lend money only to those business owners who don't really need it. If you can prove you don't need it, they'll throw it at your feet. Unfortunately, we need it,

Break-Even Analysis for Kent Company

Kent Company prepared the following table detailing its operating percentages for last year: Sales.................................... 100% Cost of sales: Variable............................ 50% Fixed................................. 10% 60% Gross profit.......................... 40% Other operating expenses

Break-Even Analysis

Last year Easton Company reported sales of $720,000, a contribution margin ratio of 30% and a net loss of $24,000. Based on this information, the break-even point was: $640,000 $880,000 $744,000 $800,000