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# Financial Ratios

### What is the breakeven point for this company?

A company produces a single product with a sale price of \$25 per unit. The variable cost per unit is \$15 and the company incurs fixed costs of \$50,000 per month. What is the breakeven point for this company?

### Describe in simple terms waht each calculated number means to Target.

Describe in simple terms waht each calculated number means to Target. Current Ratio, Average collection period, Inventory turnover ratio, Cash Ratio and Net Profit margin. Please help with this problem, what does each of the above listed items mean to Target. I am beyond confused.

### Debt Ratio, Current Ratio, Times Interest Earned Ratio

10. As a short-term creditor concerned with a company's ability to meet it's financial Obligation to you, which one of the following combinations of ratios would you Most likely prefer? Debt ratio Current ratio Time interest earned a.

### Contribution Margin

Use any data for this problem:Dizzy Amusement Park is open from 8:00 am till midnight every day of the year. Dizzy charges its patrons a daily entrance fee of \$XX per person which gives them unlimited access to all of the park's 35 rides. a. Dizzy gives out a free T-shirt to every XXXth customer entering the park. The cost

### Break-Even Units & Weighted Averages

Use any data to complete the following problem: Douglas Corporation produces and sells two models of vacuum cleaners, Standard and Deluxe. Company records show the following data relating to these two products: Standard Deluxe: Selling price per unit Variable production costs per unit Variable selling and admin. expe

### Payout Ratio Question

Plato Inc. expects to have a net income of \$5,000,000 during the next year. Plato's target capital structure is 35% debt and 65% equity. The company's director of capital budgeting has determined that the optimal capital budget for the coming year is \$6,000,000. If Plato follows a residual dividend policy to determine the coming

### University Catering Break-Even Point and Degree of Leverage

University Catering sells 50-pound bags of popcorn to university dormitories for \$10 a bag. The fixed costs of this operation are \$80,000, while the variable costs of the popcorn are \$.10 per pound. a. What is the break-even point in bags? b. Calculate the profit or loss on 12,000 bags and on 25,000 bags. c. What is the deg

### 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 balance financed by common

### Calculate asset activity ratios

Use the annual information found that can be found by reviewing attached file to answer this assignment. Calculate the following asset activity ratios for the end of 2005: Average Collection Period Inventory Turnover Total Asset Turnover please show all work, including formulae and calculations used to arrive at financial

### Determine the Break Even Point-cost

An Excel Assignment: A book publishing company has hired a marketing consultation company to develop several "scenarios" regarding possible break even point production and pricing and also a suggested retail pricing model based upon book sale projections. There are three different books of various lengths (number of pages). Th

### Financial Analysis

Based on my balance sheet and income statement please perform a financial analysis including liquidity and profitability ratios, asset and debt management and substantial growth rate. Identify key strengths and weaknesses of my financial position. What do you recommend to improve future performance?

### Calculate D's expected return on equity for each of the following leverage ratios and evaluate the results:

The D Company wishes to calculate next year's return on equity under different leverage ratios. D's total assets are \$14 million, and its average tax rate is 40 percent. The company is able to estimate next year's earnings before interest and taxes (EBIT) for three possible states of the world: \$4.2 million with a 0.2 probabi

### TREND ANALYSIS

( Liquidity & Asset Utilization Ratios Sears (SHLD) This Year Last Year Walmart (WMT) This Year Last Year Current Ratio Current Assets \$15,207,000.00 \$7,541,000.00 38,491,000.00 34,421,000.00 Current Liabilities \$10,350,000.00 1.47 \$2,086,000.00 3.62 42,888,000.00 0.9

### Claire's Antiques

I need to produce a 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 Fixed Monthly Costs Clock

### Selected financial data of two intense competitors...

(See attached file for full problem description) --- Selected financial data of two intense competitors in a recent year are presented be-low in millions of dollars. Bethlehem Steel Inland Steel

### Ratio Versus Category of Ratios

Do you know the difference between a category of ratios versus specific ratios?

### Ratios

The financial information below was taken from the annual financial statements of Gant Company. 2003 2002 Current assets \$200,000 \$170,000 Current liabilities 80,000 90,000 Total assets 550,000 450,000 Sales 720,000 600,000 Cost of goods sold 472,000 510,000 Inventory 100,000 110,000 Receivables (net) 100,000 60

### Case Study-Ratio Analysis

This is a short case study. The subject is 'Financial Management' and the topic is 'Ratio Analysis.' (See attached files for full problem description)

### Ratio and trend analysis

How do ratio and trend analysis help detect problems or identify opportunities?

### Farrell Company manufactures a product that sells for \$50 per unit.

Farrell Company manufactures a product that sells for \$50 per unit. Farrell incurs a variable cost per unit of \$30 and \$3,400,000 in total fixed costs to produce this product. They are currently selling 200,000 units. Instructions: Complete each of the following requirements, presenting labeled supporting computations. (a)

### Impact of cash flows and ratios

Post Corporation purchases from suppliers on net 30 day terms, has an Accounts Receivable Turnover of 8 times, and an Inventory Turnover of 12 times. Cash inflows and outflows are a. evenly matched. b. negatively mismatched by 60 days. d. negatively mismatched by 45 days.

### Condensed financial data...

(See attached file for full problem description) 1. Condensed financial data are presented below for the Phoenix Corporation: 2006 2005 Accounts receivable 267,500 230,000 Inventory 312,500 257,500 Total current assets 670,000 565,000 Intangible assets 50,000 60,000 Total assets 825,000 695,00

### Phillip Company: break-even

For the current year ending April 30, Phillip Company expects fixed costs of \$70,000, a unit variable cost of \$60, and a unit selling price of \$95. (a) Compute the anticipated break-even sales (units). (b) Compute the sales (units) required to realize an operating profit of \$8,000.

### Analyzing the Effects of Current Ratio

Gil Corporation has current assets of \$90,000 and current liabilities of \$180,000. Required: Compute the effect of each of the following transactions on Gil's current ratio: 1. Refinancing a \$30,000 long-term mortgage with a short-term note. 2. Purchasing \$50,000 of merchandise inventory with short-term account payable.

### Ratio Analysis : Academic response

Dealey Products is a division of a major corporation. The following data are for the last year of operations: Sales 12,700,000 Net operating income 1,549,400 Average operating assets 5,000,000 The company's minimum required rate of return 10% Reference: 12-13 The division's turnover is closest to:

### Use financial ratio analysis to assess the stability of an organization.

Use the annual information found that can be found by clicking here to answer this assignment. Calculate the following asset activity ratios for the end of 2005: 1. Average Collection Period 2. Inventory Turnover 3. Total Asset Turnover The attachment are the information for solution and the assignment.

### Use the per unit contribution margin approach to determine the break-even point in units and dollars.

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

### Gross profit ratio

An item that cost \$90 is sold for \$120. The gross profit ratio for this item is: 20% 25% 33.3% 60%

### Ratio Analysis and Questions

I have attached 2 files. The first file has a problem is a balance sheet that needs some corrections for the 2003 and 2004 year and calculations for 2005. Some additional questions are asked which are attached in the file. The attached file which is the Word file on Brinker needs to be set-up and answered the same way the fi

### Percent-of-sales method: Will external financing be required for the Prep Shop during the coming year? What would be the need for external financing if the net profit margin went up to 14 percent and the dividend payout ratio was increased to 70 percent ?

(See attached file for full problem description) --- 24. Cambridge Prep Shops, a national clothing chain, had sales of \$200 million last year. The business has a steady net profit margin of 12 percent and a dividend payout ratio of 40 percent. The balance sheet for the end of last year is shown below.