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# Financial Ratios

### Financials of the 2004 Annual Report for General Motors at the GM Web site.

Http://www.gm.com/company/investor_information/stockholder_info/ · Your instructor will divide the class into two discussion clusters. · Respond to one of the following in your assigned cluster thread: o As a lender, state which financial ratios you would use and how you would use them to evaluate a company. Identify

### Profitability ratios

Access the filing of the 2004 10-K (annual report) of the Hershey Foods Corporations (ticker HSY) at: http://www.sec.gov/Archives/edgar/data/47111/000004711105000107/d16234_10-k.htm and complete the following requirements. Compute or identify the following profitability ratios of Hershey for its years ending December 31, 2004

### Evaluating Target Corporation's Annual Report

I need help with the following assignment. You can go to www.annualreports.com to retrieve Target's '06 and '07 reports Prepare a 1,750- to 2,100-word paper,that includes performance ratios based on the company's last two annual reports and data available on the company's Web site. o Compute the eight ratios listed below

### Contribution-Margin Ratio and Breakeven Point

Boston Bakers Inc, manufactures and sells a line of fat-free cookies under the name Aunt Maggie's Cookies. The process Boston Bakers uses to manufacture of the cookies is labor intensive. It relies on heavily on direct labor. Last year Boston Bakers sold 300,000 dozen cookies at \$2.50 per dozen. Variable costs at this leve

### A machine originally had an estimated useful life of 5 years, but after 3 complete years, it was decided that the original estimate of useful life should have been 10 years.

Question 1 A machine originally had an estimated useful life of 5 years, but after 3 complete years, it was decided that the original estimate of useful life should have been 10 years. At that point the remaining cost to be depreciated should be allocated over the remaining: a.2 years. b.5 years. c.7 yea

### Risk and Return of Assets for Chargers Products

Michele Stuart, a financial analyst for Chargers Products, a manufacturer of stadium benches, must evaluate the risk and return of two assets, X and Y. The firm is considering adding these assets to its diversified asset portfolio. To assess the return and risk of each asset, Michele gathered data on the annual cash flow and beg

### Howton: forecast AFN for coming year with increase in payout ratio

Howton & Howton Worldwide (HHW) is planning its operations for the coming year, and the CEO wants you to forecast the firm's additional funds needed (AFN). Data for use in the forecast are shown below. However, the CEO is concerned about the impact of a change in the payout ratio from the 10% that was used in the past to 50%, wh

### Calculate selected financial ratios and explain financial reporting issues

C11.14 a. There is a 2009 income statement and balance sheet for Gerrard Construction Co. What other financial statements are required? What information would these statements communicate that could not be determined by reviewing only the income statement and balance sheet? b. Briefly describe the note disclosures that shou

### Coca Cola vs Pepsi Co: based on ratios presented, which company is more profitable?

2007 Ratio Computations for Coca-Cola & PepsiCo. Computation of Profitability Ratios: 1) Profit margin Coca-Cola Company PepsiCo. Formula: Net income Net sales 5,981 = 21% 5,658 = 14% 28,857 39,474 Commentaries:

### Erascible Company: Compute acid-test ratio

Question 38: Erascible Company has \$13,000 in cash, \$10,800 in marketable securities, \$31,000 in accounts receivable, \$28,000 in inventories, and \$30,000 in current liabilities. The company's current assets consist of cash, marketable securities, accounts receivable, and inventory. The company's acid-test ratio is closest to

### Disney's 2006 & 2007 Annual Reports Ratio Analysis

Attached are the URLs to Disney's 2006 & 2007 annual reports. Calculate the following ratios for each year: ? Current ? Debt ? Return on Equity ? Days Receivable Be sure to discuss the trend for each ratio and what it tells about the organization's financial health. http://amedia.disney.go.com/investorrelations/annu

### Contribution margin, Break evenpoint

The snowboard sells for \$180. a) What is the unit contribution margin per snowboard? b) What is the breakeven point in units? c) Explain what the contribution margin is, and why it is useful information for Elizabeth. Please refer to attachment.

### The Eddison Electronics Company (EEC) owns a wide variety of manufacturing companies that make sophisticated electronic controls. You are EEC's corporate business financial analyst.

Scenario: The Eddison Electronics Company (EEC) owns a wide variety of manufacturing companies that make sophisticated electronic controls. You are EEC's corporate business financial analyst. Your responsibilities include the following: Creating and analyzing the monthly performance of each company within EEC. Provid

### Explain and Compute the Retention Ratio

Quick question: If I have net income of \$3600, expected dividend of 1098 and a 34% tax rate, how would I figure my retention ratio?

### Plowback Ratio

Stormy Weather has no attractive investment opportunities. Its return on investment (ROE) is equal to the discount rate that is 10 percent. Its expected earnings this year are \$3 per share. Find the stock price for a plowback ratio (retention ratio) of 40%.

### Compute the Return on Investment

Tundra Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below: Sales \$18,000,000 Net operating income \$5,400,000 Average operating assets \$36,000,000 Compute the margin for Tundra Services Co

### Fixed Monthly Costs

Group Mates: Holmes, Brenda Hulse, Thomas Johnson, April Kamposh, Faye Kostuch, Kristine laatsch, yvonne Lennox, Crystal Details: The individual portion of this assignment is for each person to produce his/her own solution to the following. Claire's Antiques has fixed cost of \$75,000 per month. Each antique has the f

### CompuDesk, Inc., makes an oak desk specially designed for personal computers. The desk sells for \$200. Data for last year's operations follow:

CompuDesk, Inc., makes an oak desk specially designed for personal computers. The desk sells for \$200. Data for last year's operations follow: Units Beginning Inventory 0 Units Produced 10,000 Units Sold 9,000 Units in Ending Inventory 1,000 Variable Costs per Unit: Direct Materials \$60 Direct Labor \$30 V

### You have been hired as a consultant for JetSet Travel, Inc. (JTI), a company which develops, manufactures, and sells a wide range of travel-related equipment and products.

Scenario: You have been hired as a consultant for JetSet Travel, Inc. (JTI), a company which develops, manufactures, and sells a wide range of travel-related equipment and products. The company expanded its luggage production this year and invested much of its manufacturing funds into the initial manufacture of a lightweight,

### Compounding, Balance Sheets, Ratios

1. (1 point) If you deposit \$1,000 each year in a savings account earning 4%, compounded annually, how much will you have in 10 years? 2. (1 point) You have decided to invest \$500 in a mutual fund today and make \$500 end-of-the-year investments in the fund each year until you retire for 40 years. Assuming an opportunity

### Ratio analysis and financial analysis

Tell what four ratios would be helpful in assessing the financial strength of a company and why each ratio would be helpful. Which is more important to the short-term lender: the stock of cash or the flow of cash? Why? Can a businesses operate with no current liabilities? Why?

### McFrugal, Inc. has expected sales of \$20 million. Fixed operating costs are \$2.5 million, and the variable cost ratio is 65 percent.

Please see attached. Thanks! Complete problems 10, 12, & 15 on text pp. 414-415 of Ch. 13....6 and 8 on p. 439 of Ch. 14 and problems 4, 5, & 6 on text pp. 441-442 of Ch. 14. 10. McFrugal, Inc. has expected sales of \$20 million. Fixed operating costs are \$2.5 million, and the variable cost ratio is 65 percent. McFrugal

### Financial data for Ratco Company last year

Please see attached file. thanks Financial data for Ratco Company last year appear below: Ratco company Statements of Financial Position Beginning balance Ending

### Break even problem

JJ company offers 2 products. At the present, the following represents the usual results of a month's operations: Product K Product L Amount Per Unit Amount Per unit Combined amount Sales revenue \$120,000 \$1.20 \$80,000 \$

### Operating Leverage on 10-Year project

Consider a 10-year project with the following information: initial fixed asset investment = \$330,000; straight-line depreciation to zero over the 10-year life; zero salvage value; price = \$37; variable costs = \$13; fixed costs = \$112,200; quantity sold = 47,124 units; tax rate = 35 percent. The degree of operating leverage at 47

### Return on investment (ROI)

Exercise 12-14 Effects of Changes in Sales, Expenses, and Assets on ROI [LO2] BusServ.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales \$ 7,900,000 Net operating income \$ 780,000 Average operating assets \$ 2,500,000 __________________

### leasing of non current(fixed)assets-effect on ratios

What is the effect on the financial statement ratios if the company decides to lease the noncurrent assets needed to expand the business?

### Contribution-Margin Ratio

At a volume level of 500,000 units, Smith Brothers reported the following information: Sales Price \$74 Variable cost per unit 38 Fixed cost per unit 4 The company's contribution-margin ratio (to two decimal points) is?

### What can a company can do to improve its financial ratios?

What can a company can do to improve its financial ratios?

### Range of Capacity Volume in Break Even Analysis

What is the importance of using a break-even analysis that incorporates more than one range of capacity volume?