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
Can someone please explain to me in layman's terms how to calculate these ratios? Is there an easy way to do this? If so what is it? This is the actual assignment (the discussion part is done).. First, you will discuss key elements with top executives. How will investors assess the stability of Strident Marks? What are the
A firm has revenues of $120,000, a contribution margin ratio of 30%, and fixed expenses that total $56,000. If revenues increase $10,000, then: operating income will increase by $3000. operating income will be $3000. operating income will increase by $7000.
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
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?
Operating leverage and ratios Mr. Katz is in the widget business. He currently sells 2 million widgets a year at $4 each. His variable cost to produce the widgets is $3 per unit, and he has $1,500,000 in fixed costs. His sales-to-assets ratio is four times, and 40 percent of his assets are financed with 9 percent debt, with the
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
Ensco Lighting Company has fixed costs of $100,000, sells its units for $28, and has variable costs of $15.50 per unit. 1. Compute the break-even point. 2. Ms. Watts comes up with a new plan to cut fixed costs to $75,000. However, more labor will now be required, which will increase variable costs per unit to $17. The sales
If someone was going to give you $1M dollars but the only way you could get it is if you invested the entire amount in the stock market for 1 full year. The other stipulation was that you could only use one ratio to analyze stocks with. Which ratio would you use?
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
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
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
P1. Longhorn Corporation is a startup company that wishes to calculate its weighted average cost of capital. You have been hired to perform this work, and the CFO has provided the following facts relative to it: Debt Ratio Equity Ratio Debt Yield (a-tax) Cost of Equity 20% 80% 6.00% 8.50% 40% 60% 7.00% 9.00% 50
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 following identifiable sales price, variable material costs, and fixed monthly costs, respectively. Sales Price Variable Material Costs Fix
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
Each of the following questions should have an answer that addresses total current assets, current ratio, and effect on net income relative to +, -, 0 and an explanation relative to the question. What are the effects of these transactions + increase, - decrease, and 0 no effect, assuming a Current Ratio of more than 1 to 1:
Problem C - II ? Ratios (10 points) The following information is available for Balken Corporation: 2006 2005 Common stockholders' equity $1,100,000 $900,000 Dividends paid to common stockholders 62,500 57,600 Dividends paid to preferred stockholders 25,000 20,000 Net income 250,000 240,000 Comm
"Who can figure bankers?" Pehr Weisengraf mumbled as he returned to the office of his small candy manufacturing business, Professional Confectioners. "They're willing to lend money only to those business owners who don't really need it. If you can prove you don't need it, they'll throw it at your feet. Unfortunately, we need it,
CVP application-eliminate product from operations? Muscle Beach, Inc. makes three models of high-performance weight-training benches. Current operating data are summarized here: MegaMuscle PowerGym ProForce Selling price per unit $140 $200 $290 Contribution margin
2002 2001 Sales 1,000,000 1,200,000 COGS 800,000 960,000 Accounts Receivable 500,000 600,000 Net Income 52,000
What are the effects of these transactions + increase, - decrease, and 0 no effect, assuming a Current Ratio of more than 1 to 1: Total Effect Current Current on Net Assets Ratio Income a
Personal Investors are opening an Office. Fixed monthly expenses are office rent-($2,500), depreciation on office furniture ($260), utilities ($280), special telephone lines ($600), a connection with an online brokerage service ($640), and the salary of a financial planner ($3,400). Variable expenses include payments to the fin
(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
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
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
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?
What are the limitations of using ratios for financial statement analysis? What are the benefits? Will different user groups focus on different ratios? Why or why not? Which ratios would you use to analyze a company? Why?
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
Who can figure bankers?" Pehr Weisengraf mumbled as he returned to the office of his small candy manufacturing business, Professional Confectioners. "They're willing to lend money only to those business owners who don't really need it. If you can prove you don't need it, they'll throw it at your feet. Unfortunately, we need it,
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