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Financial Ratios

Changes in Ratio Analysis

Over the past year, M.D. Ryngaert & Co. has realized an increase in its current ratio and a drop in its total assets turnover ratio. However, the company's sales, quick ratio, and fixed assets turnover ratio have remained constant. What explains these changes?

Ratio Analysis

The following are summary financial data for Parker Enterprises, Inc., and Boulder, Inc., for three recent years: Year Year 2 Year 1 Net sales (in millions): Parker Enterprises, Inc. . . . . . . . . . . . . . . . . . . $ 3,700 $ 3,875 $ 3,882 Boulder, Inc . . . . . . . .

Break-Even Point & Contribution Margin

Regional Airways, Inc., a small two-plane passenger airline, has asked for your assistance in some basic analysis of its operations. Both planes seat 10 passengers each, and they fly commuters from Regional's base airport to the major city in the state, Metropolis. Each month 40 round-trip flights are made. Shown on page 219 is

Important Information About Dividend Payout Ratio

Lenti Inc. expects EBIT of $2,000,000 for the current year. The firm's capital structure consists of 40 percent debt and 60 percent equity, and its marginal tax rate is 40 percent. The cost of equity is 14 percent, and the company pays a 10 percent rate on its $5,000,000 of long-term debt. One million shares of common stock are

Find BEP (break-even point) for a process-focused shop.

A product is currently made in a process-focused shop, where fixed costs are $9,000 per year and variable cost is $50 per unit. The firm sells the product for $200 per unit. What is the break-even point for this operation?

Break-even analysis for Ha'Peppas pizza ovens.

Janelle Heinke, the owner of Ha'Peppas!, is considering a new oven in which to bake the firm's signature dish, vegetarian pizza. Oven type A can handle 20 pizzas an hour. The fixed costs associated with oven A are $20,000 and the variable costs are $2.00 per pizza. Oven B is larger and can handle 40 pizzas an hour. The fixed cos

Constant-Growth Model

Here are data on two stocks, both of which have discount rates of 15 percent: Stock A Stock B Return on equity 15% 10% Earnings per share $2.00 $1.50 Dividends per share $1.00 $1.00 a. What are the dividend payout ratios for each firm? b. What are the expected dividend growth rates for each firm? c. What is the proper sto

Calculating current ratio and return on equity

A company has the following accounts: cash ($25,000), net income ($50,000) interest income ($12,000), accounts payable ($75,000), factory ($85,000), equity ($305,000), inventory ($75,000), and accounts receivable ($6,000). What is the current ratio for the company? Show your calculations. What is the return on equity? Sho

Break Even Point Contribution Margin

Thorpe Corporation sells products for $15 each that have variable costs of $10 per unit. Thorpe's annual fixed cost is $300,000. User the per unit contribution margin approach to determine the break-even point in units and dollars.

Contribution margin per unit

Icon Industries is considering a new product for its Trophy Division. The product, which would feature an alligator, is expected to have global market appeal and to become the mascot for many high school and university athletic teams. Expected variable unit costs are as follows: direct materials, $18.50; direct labor, $4.25; pro

Break Even Points

C-V-P Analysis The Last Outpost is a tourist stop in a western resort community. Kerry Yost, the owner of the shop, sells hand-woven blankets for an average price of $30 per blanket. Kerry buys the blankets from weavers at an average cost of $21. In addition, he has selling expenses of $3 per blanket. Kerry rents the building

Accounting question - Ratio Analysis

1. Determine the change in market price of the capital stock from the end of 20X1 to the end of 20X3. 2. What are the total assets at the end of each year? 3. What is the return on owners' equity for 20X3? (Hint: A=L+E) For this question, assume that the total owners' equity did not change during the year. See attached file

Ratio Analysis for Kale Company

Compute the specific ratios using Kale Company's balance sheet at December 31, 2004. Assets Cash 15,000 Marketable Securites 8,000 Accounts Receivable 13,000 Inventory 11,000 Property and Equipment 1

Ratio

I would like for you to reference the www.sec.gov and choose. (Targets Stores). Calculate the basic Inventory Ratios...Days sales in inventory and inventory turnover. Have these ratios been improving or deteriorating? Based on the reading of the 10k what strategies are employed by your respective company in managing inventory

Comparative income statement and balance sheet

7-10 slides Details: Put together a slide presentation for familiarizing staff with the current condition of the company. Those attending your presentation will include some who are less familiar with the use of financial ratios. Use the following financial statements for ALLGR Manufacturing to derive important financial rati

Contribution Margin/Break-Even Calculations - Lucido Products

Lucido Products markets two computer games: Claimjumper and makeover. A contribution format income statement for a recent month for the two games appears below: Claimjumper Makeover Total Sales $30,000 $70,000 $100,000 Less variable expenses 20,000 50,000 70,000 Contribution margin $10,000 $20,000 30,000 Less fixed exp

Break Even Point Calculations

If a firm has a break-even point of 20,000 units and the contribution margin on the firm's single product is $3.00 per unit and fixed costs are $60,000, what will the firm's net income be with sales of 30,000 units?

Company TIE Ratio Calculation

A Company has the following data: Assets: $10,000; Profit margin: 3.0%; Tax rate: 40%; Debt ratio: 60.0%; Interest rate: 10.0%; and Total assets turnover: 2.0. What is the Company's TIE ratio?

Financial Analysis - Liquidity Position

You have taken the following information from a firm's financial statements. As an investor in the firm's debt instruments, you are concerned with its liquidity position and its use of financial leverage. What conclusions can you draw from this information? 2004 2003 2002 Sales $1,700,000 $1,500,000 1,000,000 Ca

Company Contribution Margin

Sales (30,000 basket balls at $50) 1,500,000 less Variable Expenses 900,000 Contribution margin 600,000 Less fixed Expenses 280,000 Net income 320,000 Compute the company's contribution margin percentage and break even point in both units and

Finance Problems

1. Why is interest expense said to cost the firm substantially less than the actual expense, while dividends cost it 100 percent of the outlay? 2. If the accounts receivable turnover ratio is decreasing, what will be happening to the average collection period? 3. Griffey Junior Wear, Inc. has $800,000 in assets and $200,00

NuWell Trading Ltd. - Financial Ratios

NuWell Trading Ltd. a) Calculate 1. Current ratio 2. Inventory turnover 3. Interest Cover Ratio 4. Return on Ordinary shareholders' equity 5. Earnings per ordinary share 6. Price/earning ratio b) Based on the ratios computed, comment on NuWell's financial position and the attractiveness of its ordinary shares to investors.

RATIO - DISCOUNT RATE

Assuming that the current ratio is currently 2, which of the following actions will increase it? 1. Purchasing inventory with cash. 2. Purchasing inventory on short-term credit. 3. Paying off a short-term bank loan with long-term debt. 4. None of the above increase the current ratio. 5. All of

EPS and PE Ratio

Walker machine tools has 5 million shares of common stock outstanding. The current market price of Walker common stock is $42 per share rights-on. The company's net income this year is $15 million. A rights offering has been announced in which 500,000 new shares will be sold at $36.50 per share. The subscription price plus 10 ri

Compare and contrast standards and budgets, compute the variable overhead total, spending and efficiency variances for manufacturing overhead, compute the ROI and intermediate values using the DuPont approach, and create a cash budget

See attached file. 1. Compare and contrast standards and budgets. 2. Compute the variable overhead total, spending and efficiency variances for manufacturing overhead given the following information. Actual hours x1000, standard hours 900, standard rate $1.5/hours and actual rate $1.25/hour. 3. Given the following info

Finance

Indicate for each of the following items whether it would appear on a balance sheet (BS) or an income statement (IS). If a balance sheet item, is it an asset (A), a liability (L), or an owners' equity item (OE)? Assuming no additional investments by or distributions to owners, compute the missing amounts for companies X, Y