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Financial Ratios

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

Financial Statements

Given the financial statements for Johnson Corporation and Simpson Corporation shown here: a. To which company would you, as credit manager for a supplier, approve the extension of (short-term) trade credit? Why? Compute all relevant ratios before answering. b. In which one would you buy stock? Why? See attached file

Ratio Analysis Information

Who uses financial ratio analysis information? How can you determine if an organization will be unable to pay its bills? How can you determine if an organization is using too much debt?

C-V-P Equations

C-V-P Equations. 9. What is the basic C-V-P equation? What is a more detailed version of this equation? 10. What is the contribution margin, and why is it important for managers to know the contribution margins of their products? 11. How much will profits increase for every unit sold over the break-even point? 12. What is

What is the break even level of daily output for the firm?

Tetrangle Manufacturing has fixed costs of $2,160 per day. The firm manufactures bicycle component upgrade kits. The kits have a short-run average variable cost of $48 and are sold for $66 each. (i) What is the break even level of daily output for the firm? (ii) What is the degree of operating leverage when daily output is

Compute the company's monthly break-even point in units of product.

Parkins Company produces and sells a single product. The company's income statement for the most recent month is given below: Sales (6,000 units at $40 per unit) $240,000 Less manufacturing costs: Direct materials $48,000 Direct labor (variable) 60,000 Variable factory overhead 12,000 Fixed factory overh

Bank Notes and Liquidity

NBS Company has guaranteed a $1,000,000 bank note for XY Company. How would this influence the liquidity ratios of NBS Company? How should this situation be considered?

Find the financial ratios for Wal-Mart and Federated Department stores.

See attached file for full problem description. If the figures are not accurate please help with that too. 1. From Investor Relations sections of websites of Wal-Mart and Robinsons May (use Google), compile dividend (annual) information and net income figures of each company for the years 1998, 1999, 2000, 2001, 2002, and 20

Annie McCoy - Break Even Analysis

Annie McCoy, a student at Tech, plans to open a hot dog stand inside Tech's football stadium during home games. There are seven home games scheduled for the upcoming season. She must pay the Tech athletic department a vendor's fee of $3,000 for the season. Her stand and other equipment will cost her $4,500 for the season. She es

Capital Ratio and Balance Sheet Analysis

National Bank has the following balance sheet (in millions) and has no off-balance-sheet activities. (See attached file for full problem description) Assets Liabilities and Equity Cash $20 Deposits $980 Treasury bills 40 Subordinated debentures 40 Residential mortgage 600 Common Stock 4

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


(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