Share
Explore BrainMass

Financial Ratios

Incremental contribution margin

I am working on cost analysis and got stuck on the incremental contribution margin. It's number 2 in the worksheet attached. I put my notes of what I was trying to do next to the line items.

Three questions/ multiple choice

Holding all other factors constant, the break-even point will be decreased by a. increasing the fixed costs. b. decreasing the contribution margin. c. increasing the selling price. d. increasing the variable cost per unit. Louie's Lunch Counter's employees know that they serve three meat and potatoes lunch

Short-term ability to pay

Ratio analysis for the short-term is important and many of the techniques are easy to use and can provide you significant data as to the company's ability to pay short-term debt. But, will these same techniques provide you with abundant information about the current daily operations for the same period? Will the cash flow of the

Profitability

(See attached file for full problem description) P 8-5 Required : a. Calculate the following for 2004 and 2003 1) Net profit margin 2)Return on assets (using ending assets) 3) Total assets turnover (using ending assets) 4) Dupont analysis 5) Operating income margin 6) Return on operating assets ( using ending assets) 7

Accounting questions

On January 1, 2003, Holt Company purchased 30,000 shares of the 100,000 common shares outstanding of Crane Company for $1,080,000. During 2003, Crane Company reported net income of $240,000 and paid a cash dividend of $110,000. The balance of the Stock Investments account on the books of Holt Company on December 31, 2003, is

"Company A" a merchandising entity...

I need to know if "Company A" a merchandising entity, service business or both? How would I be able to tell? I would need to list the items on "Company A's" financial statements that influence the answer. I would also need to compute "Company A's" gross profit for fiscal years 2001 and 2000. Can you tell if the gross profi

Financial Analysis

I need to add a "financial analysis" of liquidity and profit ability ratios to my final (about DELL Inc.)- Could you help me with this?

Classification of Accounts/Accounting Concepts

E6: The following data pertain to a sole proprietorship: Sales, $405,000 Cost of Goods Sold, $220,000 Selling Expenses, $90,000 General and Administrative Expenses, $60,000 Interest Expense, $4,000 Interest Income, $3,000 1. Prepare a condensed single-step income statement. 2. Prepare a condensed multistep income st

Accounting and Forecasting for ABC Fitness: Asset activity ratios

ABC Fitness 000's Income Statement Dec-05 Sales 2004.016 Cost of Goods Sold 1446.733 Gross Profit 557.283 Selling and Ad Expenses 361.402 Depreciation 56.87 Operating Income (EBIT) 139.011 Interest expense 34.482 Other Expense 14.124 EBT 90.405 Taxes 24.701 Net Income 65.704 Balance Sheet

Describe in simple terms waht each calculated number means to Target.

Describe in simple terms waht each calculated number means to Target. Current Ratio, Average collection period, Inventory turnover ratio, Cash Ratio and Net Profit margin. Please help with this problem, what does each of the above listed items mean to Target. I am beyond confused.

Contribution Margin

Use any data for this problem:Dizzy Amusement Park is open from 8:00 am till midnight every day of the year. Dizzy charges its patrons a daily entrance fee of $XX per person which gives them unlimited access to all of the park's 35 rides. a. Dizzy gives out a free T-shirt to every XXXth customer entering the park. The cost

Break-Even Units & Weighted Averages

Use any data to complete the following problem: Douglas Corporation produces and sells two models of vacuum cleaners, Standard and Deluxe. Company records show the following data relating to these two products: Standard Deluxe: Selling price per unit Variable production costs per unit Variable selling and admin. expe

Financial Analysis

Based on my balance sheet and income statement please perform a financial analysis including liquidity and profitability ratios, asset and debt management and substantial growth rate. Identify key strengths and weaknesses of my financial position. What do you recommend to improve future performance?

TREND ANALYSIS

( Liquidity & Asset Utilization Ratios Sears (SHLD) This Year Last Year Walmart (WMT) This Year Last Year Current Ratio Current Assets $15,207,000.00 $7,541,000.00 38,491,000.00 34,421,000.00 Current Liabilities $10,350,000.00 1.47 $2,086,000.00 3.62 42,888,000.00 0.9

Ratios

The financial information below was taken from the annual financial statements of Gant Company. 2003 2002 Current assets $200,000 $170,000 Current liabilities 80,000 90,000 Total assets 550,000 450,000 Sales 720,000 600,000 Cost of goods sold 472,000 510,000 Inventory 100,000 110,000 Receivables (net) 100,000 60

Case Study-Ratio Analysis

This is a short case study. The subject is 'Financial Management' and the topic is 'Ratio Analysis.' (See attached files for full problem description)

Farrell Company manufactures a product that sells for $50 per unit.

Farrell Company manufactures a product that sells for $50 per unit. Farrell incurs a variable cost per unit of $30 and $3,400,000 in total fixed costs to produce this product. They are currently selling 200,000 units. Instructions: Complete each of the following requirements, presenting labeled supporting computations. (a)

Cash inflows and outflows are...

Post Corporation purchases from suppliers on net 30 day terms, has an Accounts Receivable Turnover of 8 times, and an Inventory Turnover of 12 times. Cash inflows and outflows are a. evenly matched. b. negatively mismatched by 60 days. d. negatively mismatched by 45 days.

Condensed financial data...

(See attached file for full problem description) 1. Condensed financial data are presented below for the Phoenix Corporation: 2006 2005 Accounts receivable 267,500 230,000 Inventory 312,500 257,500 Total current assets 670,000 565,000 Intangible assets 50,000 60,000 Total assets 825,000 695,00

Phillip Company: break-even

For the current year ending April 30, Phillip Company expects fixed costs of $70,000, a unit variable cost of $60, and a unit selling price of $95. (a) Compute the anticipated break-even sales (units). (b) Compute the sales (units) required to realize an operating profit of $8,000.