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# Financial Ratios

### CVP, Curvilinear costs, break even, operating range, target income, margin ratio

Question 1 The relevant range of operations excludes extremely high and low levels of production that are not likely to occur. True False Question 2 Curvilinear costs are also known as nonlinear costs. True False Question 3 The margin of safety is the excess of:

### Calculate Income and Dividend Payout Ratio

D. Paul Inc. forecasts a capital budget of \$725,000. The CFO wants to maintain a target capital structure of 45% debt and 55% equity, and it also wants to pay dividends of \$500,000. If the company follows the residual dividend policy, how much income must it earn, and what will its dividend payout ratio be? Net Income Payout

### Break even point calculations for Serendipity Sound, Inc.

Serendipity Sound, Inc. manufactures and sells compact discs. Price and cost data are as follows: Required: 1. What is Serendipity Sound's break-even point in units? 2. What is the company's break-even point in sales dollars? 3. How many units would Serendipity Sound have to sell in order to earn \$260,000? 4. What is

### Finding financial ratios

This assignment is very important. I want to make sure I am on track with my answers. Refer to attached table for data 1. The return on assets ratio for year 2 is __________. 2. The operating profit margin for year 2 is __________. 3. The current ratio for year 2 is __________. 4. The quick ratio for year 2 is _________

### Caremore: Target Costing for return-on-sales ratio; target costing for banking

Stacey Yoo, President of Caremore, Inc., an appliance manufactuer in Seattle, Washinton, has been trying to decide whether one of her products-line managers, Bill Mann, has been achieving the companywide return-on-sales target of 45%. Stacy has just received data from the new target costing system regarding Bill's operation. Bi

### Mickey Co and Minnie Co: vertical analysis; Art Mart Co financial ratios

Please see attached file. Use Excel format. Mickey Company and Minnie Company: prepare a vertical analysis Art Mart Company: compute financial ratios

### Financial Statement

Please see attached. The condensed financial statements of Westward Corporation for 2006 are presented below. Westward Corporation Westward Corporation Balance Sheet Income Statement December 31, 2006 For the Year Ended December 31, 2006 Assets Revenues \$2,000,000 Current assets Expenses Cash and temporary C

### Complete Ratio Analysis

HH, Inc. has come to Jane Ross for a yearly financial checkup. As a first step, Jane has prepared a complete set of ratios for the fiscal years of 2008 and 2009. She will use them to look for significant changes in the company's situation from one year to the next: a) To focus on the degree of change, calculate the year-to-

### Accounting: percentage increase, quick assets, AR turnover, days sales, cost

Please see attach document. 1. What type of analysis is indicated by the following? Increase (Decrease*) 2007 2006 Amount Percent Current assets \$ 380,000 \$ 500,000 \$120,000* 24%* Fixed assets 1,680,000 1,500,000 180,000 12% vertical analysis horizontal analysis liquidity a

### Financial Ratios for Common Stockholders

Refer to the financial statements and other data in PROBLEM 14-12B. Assume that you are an account executive for a large brokerage house and that one of your clients has asked for a recommendation about the possible purchase of Newport Industry stock. You are not acquainted with the stock and for this reason wish to do some anal

### Financial Ratios for Common Stockholders

Exercise 14-6 Selected Financial Ratios (LO3, LO4) Recent financial statements for Madison Corporation, a company that sells drilling equipment, are given below: Madison Corporation Balance Sheet 30-Jun Assets Current assets: Cash 21,000 Accounts recievabl

### Le Blue Company's Net Fixed Assets

The Le Blue Company has a ratio of long-term debt to total assets of 0.70 and a current ratio of 1.20. Current liabilities are \$850, sales are \$4,310, profit margin is 9.5 percent, and Return of Equity (ROE) is 21.5 percent. What is the amount of the firm's net fixed assets?

### Excelsior: Prepare ratio analysis for liquidity, asset management, debt & profitability

Complete the following table using the data provided on pages 6 and 7. Note that after calculating the ratios for the company, indicating whether it is better or worse than the industry average for that category. Ratio Analysis for Excelsior, Inc. 2000X Industry Avgs Better / Worse? Liquidity Curren

### Growth rate in dividends is a function of what two ratios?

Growth rate in dividends is a function of what two ratios? Transaction Audit Objectives

### XYZ Company ratio analysis: Net income/total assets; Debt/total assets

6. XYZ Company posts the following results along with information from comparable companies. XYZ company Industry data Year Net income Total Assets (net income / total assets) 1998 \$350,000 \$2,800,000 11.5% 1999 375,000 3,200,000 8.4% 2000 375,000 3,750,000 5.5% Year

### Breakeven analysis

A company's fixed operating costs are 500,000, its variable costs are 3.00 per unit, and the product's sales price is 4.00. What is the company's breakeven point ; that is, at what unit sales volume would its income equal its costs? Please show calculations.

### Time Warner: The Cost of Equity

In the previous part of the SLP you considered the market value of the company's long and short term debt and the market value of your company's equity. In this section of the Session Long Project you'll estimate the cost of equity or the rate of return that TIME WARNER'S shareholders 'require'. This is an important piece of

### Chapter 5 Risk analysis: Barnett Corp, Solar Designs, portfolio analysis

Please see attached file and show all your calculations. Chapter 5 P5-3: Risk preferences Sharon Smith, the financial manager for Barnett Corporation, wishes to evaluate three prospective investments: X, Y, and Z. Currently, the firm earns 12% on its investments, which have a risk index of 6%. The expected return and expec

### Financial ratios for Walgreens

Using the most current financial statements for Walgreens, calculate and compare the financial ratios listed below. The financial statements can be located on the web. Liquidity Measures- Working capital, Current ratio, Acid test ratio Activity Measures- Total asset turnover, Inventory turnover Profitability Measures- G

### Russert Corporation: Compute the seven listed ratios for 2006

The condensed financial statements of Russert Corporation for 2006 are presented below. Russert Corporation Russert Corporation Balance Sheet Income Statement December 31, 2006 For the Year Ended December 31, 2006 Assets Revenues \$2,000,000 Current assets Expenses Cash and temporary Cost of goods sold 1,080,000

### Debt & Ratio analysis for Creek Enterprises and Fox Manufacturing

See attached document for full problems P2-12 Debt analysis Springfield Bank is evaluating Creek Enterprises, which has requested a \$4,000,000 loan, to assess the firm's financial leverage and financial risk. On the basis of the debt ratios for Creek, along with the industry averages and Creek's recent financial statements

### What are the benefits and disadvantges of using ratio analysis to evaluate performance?

What are the benefits and disadvantges of using ratio analysis to evaluate performance?

### Target costing: Return on Sales for Caremore, Inc

7-51 Target costing: return on sales Stacy Yoo, president of Caremore, Inc., an appliance manufacturer in Seattle, Washington, has been trying to decide whether one of her product-line managers, Bill Mann, has been achieving the companywide return-on-sales target of 45%. Stacy has just received data from the new target co

### Ratio calculations for Jackson Electronics

Jackson Electronics is a retailer of electronic products. Using the financial data provided, complete the financial ratio calculations for 2007. (see attached files) Jackson Electronics is a retailer of electronic products. Using the financial data provided, complete the financial ratio calculations for 2007.

### Break Even Point

Hamby Company has a unit selling price of \$400, variable costs per unit of \$260, and fixed costs of \$210,000. Compute the break-even point in units using (a) the mathematical equation and (b) contribution margin per unit. (a) Breakeven point using mathematical equation units (b) Breakeven point using contribution margin pe

### Forever Young litigation costs; Teddy Bear break-even point

2-38 Cost analysis, litigation risk, ethnics. Sam Nash is the manager of a new product development of Forever Young (FY). Nash is currently considering Enhance, which would be FY's next major product. All FY's current products are cosmetics applied to the skin by the consumer. In contrast, Enhance is inserted via a needle in

### Break even analysis..

A friend of yours is trying to determine whether to open a sandwich stand at the local mall based on the following data. She expects total fixed costs per year of \$24,000, a sale price per sandwich of \$3.00, and variable costs per sandwich of \$1.80. The break-even level of output for this endeavor is: a. 12,000. b. 16,00

### Segment margin ratio

Compute the segment-margin ratio. Net sales revenue .. . . . \$728,000 Cost of goods sold . . . . 416,000 Selling and administrative costs ..104,000 Advertising cost . . . . . . . . . 62,400 Insurance cost . . . . . . . . . . 82,000

### Computing Leverage and Breakeven Analysis: Fastron, Inc.

- Fastron, Inc. expects sales of silicon chips to be \$60 million this year. Because this is a very capital-intensive business, fixed operating cost are \$20 million. The variable cost ratio is 40 percent. The firm's debt obligations consist of a \$4 million, 10 percent bank loan and a \$20 million bond issue with an 11 percent c

### Computing Leverage and Break-Even Analysis

Assuming that all other factors remain unchanged, determine how a firm's breakeven point is affected by each of the following: a. The firm finds it necessary to reduce the price per unit because of competitive conditions in the market. b. The firm's direct labor cost increase as a result of a new labor contract. c. T