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Financial Ratios

Operating Cycle and Breakeven Point

Choose the correct answer. 1. The operating cycle measures the time between acquiring and selling inventory. a) True b) False 2. If a firm's sale price per unit decreases, the firm's operating breakeven point will a) Decrease b) Increase c) Remain unchanged d) Change in an undetermined direction

Analyze the financial performance of your division

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 use them

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

Free cash flow ratio

I need to find Landry's Restaurants Free Cash Flow Ratio for 2002 and 2003 using the following formula: Free Cash Flow = Cash provided by operations - Capital expenditures - Cash Dividends. ** Please see the attached files for the data **

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

Financial Decision Making

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 use them

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

Noticed an error in one of your solutions when comparing answers

In comparing my answers to one of your postings # 147076 which was originally created on 10/2/07, I noticed an error and am hoping that you can help me with this as I am a bit confused. It seems to me that the OTA used the same figures from the Accounts Receivables balance for both the Accounts Receivables and Account Payables

Coca-Cola and PepsiCo: Solvency ratios

Given the following data, prepare a solvency analysis of Coca-cola and PepsiCo. Coca-Cola PepsiCo Total current asset $ 12,094 $ 8,639 Total current liabilities 10,971 6,752 Net sales 21,962 29,261 Cost of goods sold 7,638 13,406 Net income 4,847 4,212 Average (net) rec

Boise Company manufactures and sells three products:

Boise Company manufactures and sells three products: Good, Better, and Best. Annual fixed costs are $3,315,000, and data about the three products follow. Good Better Best Sales mix in units 30% 50% 20% Selling price $250 $350 $500 Variable cost 100 150 250 Required: A. Determine the weighted-average unit c

Golden Company: Breaking Even and Additional Sales for Promotions

The Golden Company has experienced a steady growth in the past three years. The managemetn of the company believes that an additional sales promotion program is necessary to maintain the compan's present growth. The company's normal activity is 20,000 units per year. The following budgeted data have been prepared for the curren

Multi Product Break-Even Analysis

Irle Enterprises is the distributor for two products. Model A100 and Model B900. Monthly sales and the contribution margin ratios for the two products follow: Product Model A 100 Model B 900 Total Sales $700,000 $300,000 $1,000,000 Contribution margin ratio 60% 70% ? The company's fixed expenses total $598,500

Calculating CM Ratio, breakeven sales and operating leverage

Refer data given below: MARJOLEIN & CO. Unit price $20 Variable cost per unit 6 Annual fixed costs 210,000 Calculate CM Ratio, Contribution margin and breakeven sales. (3) Estimated sales increase $200,000 Calculate in increase in contribution margin and net operating income.

Industry structure

Industry structure is often measured by computing the Four-Firm Concentration Ratio. Suppose you have an industry with 20 firms and the CR is 30%. How would you describe this industry? Suppose the demand for the product rises and pushes up the price for the good. What long-run adjustments would you expect following this change i

Ratio Analysis Techniques

Which of the following is not one of the accepted ratio analysis techniques: a Trend analysis b Boolean analysis c Cross-sectional analysis d Industry comparables analysis Please give me a brief explanation of why.

Effect of transactions on liquidity measures

Please see attached. Selected balance sheet accounts for Tibbets Company on September 30,2008 are as follows; Cash $32,000 Marketable securities 58,000 Accounts receivable, net 86,000 Inventory 90,000 Prepaid expenses 14,000 Total current assets $280,000 Accounts payable $98,000 Other accrued liabilities 22

Spectrum, Inc: Prepare and evaluate Financial Ratios

Utilizing the attached Enclosure 1 "Balance Sheet and Income Statement for Spectrum, Inc" a) Compute the following eight (8) financial ratios and provide a one sentence explanation of the analytic use of each ratio test. Show your formulas and input. Accuracy to two decimal points is sufficient. b) Evaluate how Spectrum's fi

Understanding the Effects of Operating Leverage

Lowell Inc. and Tuscan Time operate in the same industry and had the following operating results in 2007. Sales = $2,100,000, $2,100,000 Variable Expenses = $420,000, $1,260,000 Contribution Margin = $1,680,000, $840,000 Fixed Expenses = $1,470,000, $630,000 Operating Income = $210,000, $210,000 a. Calculate the break-

Zoldt Corp. P/E ratio

6.In the event that Zoldt Corporation, which has a low P/E ratio, were to acquire Sky Corporation, which has a higher P/E ratio, an analyst can be certain that one of the following will occur. a. Zoldt Corp. will see an immediate increase in EPS. b. Zoldt Corp. will see an immediate increase in the growth rate of EPS c. Zol

Market/book ratio

Winton Washers' stock price is $75 per share. Winston has $10 billion in total assets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 800 million shares of common stock outstanding. What is Winston's market/book ratio. Please show your work.

Favorite Financial Ratios for Investors

If you were an investor in a firm what ratio's would you be particular concerned about? What concerns would you have (if any) concerning the accounting records that the ratio's are based on? How would you provide yourself with additional confidence?

Disney Corporation: Ratio Analysis

Determine these ratios, for Disney Corporation. Current Ratio Inventory Turnover Ratio Accounts Receivable Turnover Ratio Debt to equity Ration Return on Assets Return on Equity Gross Margin on Sales

Market/Book Ratio of Winston Washers

Winston Washers' stock price is $75 per share. Winston has $10 billion in total assets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 800 million shares of common stock outstanding. What is Winston's market/book ratio?

Breakeven Analysis: Innovative Sports

Innovative Sports sells a patented golf trainer called the Puttmaster. This device, sells for $69.95. The Puttmaster is sold through a distributor who sells to retail stores. The distributor pays Innovative Sports $30.85 for each Puttmaster. Innovative Sports also sells them through 30-min television infomercials for $69.95 p

Balance Sheet & Income statement

I'm getting a lot of different answers. Could someone please help with the yellow section. Thank you. Huffman Trucking Balance Sheet (Unaudited) (In Thousands)

Income statement

Please find answers top C and D. Huffman Trucking Statement of Income (Unaudited) December 31st 2006 2005 (In Thousands) Revenue $879,944 $807,288 Operating Expenses Salaries, Wages & Benefits $353,739 $330,597 Fuel Expense 217,363 192,357 Operating Supplies and Expenses 152,318 136,319