Explore BrainMass

Financial Ratios

Madison Corporation

Please see the attached. Thank you. EXERCISE 14-7 Selected Financial Ratios for Common Stockholders (LO2) Recent financial statements for the Madison Corporation, a company that sells drilling equipment, are given below: Madison Corporation Balance Sheet June 30 Assets Current Assets: Cash $21, 000 Accou

Financial Accounting - Gap Inc.

Go to and click on Investors. Click on Financials on the menu to the left. Then click on 2006 Annual Report under "Downloads" in the box to the right. Read the entire report, skimming the technical areas. Also start reading articles about the print or online. This will give you a feel for th

Multiple choice questions in Accounts: Allowance for Doubtful Accounts, Current liabilities, Proceeds from the sale of the used equipment, operating activities section of a statement of cash flows, liquidity, profitability, and solvency ratios, significant influence

1) Allowance for Doubtful Accounts is reported in the a. balance sheet as a contra asset. b. balance sheet as a contra liability account. c. income statement under other expenses and losses. d. income statement under other revenues and gains. 2) Current liabilities are obligations that are reasonably

Management Efficiency Ratio comparison for Wal-Mart and Target

This is my first accounting class and I am not very good at it. I would appreciate any assistance that I am given. My assignment is to complete a management efficiency ratio of both company's financial statement and give my findings for both. Wal-Mart Stores, Inc. (Wal-Mart) operates retail stores in various formats around t

Financial Ratios for Fashions Inc

3. Fashions, Inc. is a retail store that sells sweaters and jackets. In the past, it has bought all its sweaters from a supplier for $20 per unit. However, Fashions has the opportunity to acquire a small manufacturing facility where it could produce its own sweaters. The projected data for producing its own sweaters are as fol

Huffman Trucking Co - Ratio Analysis

Use the information contained in Huffman Trucking Co. balance sheet and income statement to calculate the following ratios (balance sheet and income statements below: Liquidity ratios Current ratio Acid-test (quick) ratio Receivables turnover Inventory turnover Profitability ratios Asset turnover Profit margin Return o

Financial Ratios - CCB Enterprises

Using the attached information (see the attached file): 1. Calculate the following financial ratios for 2004 for CCB Enterprises. a. Times interest earned b. Return on total assets c. Return on common stockholder's equity d. Debt-equity ratio (at December 31, 2004) e. Current ratio (at December 31, 2004) f. Quick (aci

Breakeven capacity analysis

Hello, I have modest familiarity with the simple break even analysis. However, the new slant in the current class are the elements of production rates, best price, and sensitivity of profits within the break even analysis. It is safe to say that right now I am a little overwhelmed! My primary interest is in what pitfal

Inventories and Ratios

Which is true and why? a) A reduction in inventories held would have no effect on the current ratio. b) An increase in inventories would have no effect on the current ratio. c) If a firm increases its sales while holding its inventories constant, then, other things held constant, its inventory turnover ratio will increase.

Transactions and Financial Statements

The president of Castle Enterprises Ltd., Nicole Castle, is considering the impact that certain transactions have on its receivables turnover and average collection period ratios. Prior to the following transactions, Castle's receivables turnover was 6 times, and its average collection period was 61 days. See attached file fo

Spartan Sportswear's Current Assets

Spartan Sportswear's current assets consist of cash, marketable securities, accounts receivable, and inventories. The following data was abstracted from a recent financial statement: Inventories $180,000 Total assets $720,000 Current ratio 2.75 Acid-test ratio 1.5 Debt to equity ratio 1.4 Compute the following for Spar

Harry Hufnpuff GlassBlowing Analysis & Recommendations

Thanks in advance for your time and assistance! Below is a description of a company, Harry Hufnpuff, which is involved in glassblowing. You are to prepare a report with an analysis of Harry's business and recommendations for improvement as indicated below. Be sure to include your financial computations as indicated below:

Preparing Closing Entries, Financial Statements, and Ratios

See attachment for full data tables. 1. Prepare the income statement and the statement of owner's equity for the calendar year 2005 and the classified balance sheet at December 31, 2005. 2. Prepare necessary closing entries at December 31, 2005. 3. Use the information in the financial statements to calculate these ratio

Balance Sheet Accounting Ratios for a car-manufacturing company

Please see the attached file. "A" Plc is a car-manufacturing company. The profit and loss account and balance sheet for the year ended 31st March 2007 are shown below with comparative figures for 2006. "A" Plc Profit and Loss Account For the year ended 31st March 2007 2007 2006 ?000s ?000s ?000s ?000s Turn

Information about "Return on equity"

Return on equity West Packaging's ROE last year was only 3%, but its management has developed a new operating plan that calls for a total debit ratio of 60%, which will result in annual interest charges of $300,000. Management project and EBIT of $1,000,000 on sales of $10,000,000 and it expects to have a total assets turnover r

Financial Ratios Analyzing Financial Performance

What are the different types of financial ratios used to analyze financial performance? Are some ratios more important than others are? Why? Which ratios are important to creditors? Investors? Managers? Why?

The Weaver Watch Company

The Weaver Watch Company sells watches for $25; the fixed costs are $140,000; and variable costs are $15 per watch What is the firm's gain or loss at sales of $8,000 watches? At 18,000 watches? What is the breakeven point? Illustrate it by means of a chart. What would happen to the breakeven point if the selling price w

Company Ratios

Two financial managers are in a heated discussion concerning the importance of trend analysis. Manager A states that all he is interested in are the absolute levels of the firm's ratios and their comparisons to industry averages, while Manager B states that he is just as interested in a trend analysis of the firm's ratios. Discu

Overcoming a Bottleneck Operation

Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation through the addition of new equipment. Two vendors have presented proposals. The fixed costs for proposal A are $50,000, and for proposal B, $70,000. The variable cost for A is $15.00, and for B, $6.00. The revenue generated by each unit is

Financial Ratio Comparrison: Computronix and Digitek

Please see the attached file. You have the following information taken from the 1996 financial statements of Computronics Corporation and Digitek Corporation (all figures are in $ millions except per share amounts): Computronix Digitek Net income 153.7 239.0 Dividend payout ration 40.0% 20.0% EB

C-V-P Analysis for Decisions

What is an example of a business decision requiring C-V-P analysis? Which variable(s) would have to change in order to impact the outcome of the C-V-P analysis? How could a C-V-P graph be used to predict the changes to break-even point and profitability given a 10% increase in sales.

How could the EEOC prove adverse impact?

A)How could the EEOC prove adverse impact? b)Cite specific discriminatory personnel practices at Dan Jones's company. c)How could Jones's company defend itself against the allegations of discriminatory practice? d)Would it make sense for this company to try to defend itself against the discrimination allegations? Dan Jones

Variable Cost/Fixed Costs

Slick Pads is a company that manufactures laptop notebook computers. The company is considering adding its own line of computer printers as well. It has considered the implications from the marketing and financial perspectives and estimates fixed costs to be $500,000. Variable costs are estimated at $200 per unit produced and so

Break Even Analysis for Aldo Redondo

Aldo Redondo drives his own car on company business. His employer reimburses him for travel at the rate of 36 cents per mile. Aldo estimates that his fixed cost per year such as taxes, insurance and depreciation are $2052. The direct or variable costs such as gas, oil and maintaince average about 14.4 cents per mile. How many mi