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# Financial Ratios

### Sales Ratio, Break-Even Point, and Profit Volume Chart

The Varihary Company manufactures 2 products, Sintax and Gremmer, which sell for \$10 and \$ 15 respectively. The following Figures apply to the year ended 30 September 2002. Sintax Gremmer. Sales \$90 000

### Calculating Asset Activity Ratios

I need to calculate the following asset activity ratios for the end of 1999. 1. Average Collection Period 2. Inventory Turnover 3. Total Asset Turnover.

### Joe and Mary's Dog Food, Financial Statement Analysis. Calculate ratios

**Please see attachment for case study info and balance sheet and income statement. 1. Create Funds statements for 2001, 2002 and 2003. 2. Calculate the following ratios for 2000: Current ratio, Quick ratio, Inventory turnover ratio, Gross profit Margin, Net profit margin, ROA, Asset turnover ratio, fixed asset turnover ra

### Contribution Margins and Break-even Point

Andre has asked you to evaluate his business, Andre's Hair Stylling. Andre has five barbers working for him. (Andre is not one of them.) Each barber is paid \$9.90 per hour and works a 40-hour week and a 50-week year, regardless of the number of haircuts. Rent and other fixed expenses are \$1,750 per month. Assume that the on

### Utilizing Past Cost & Expense Ratios

In a period of rising sales, utilizing past costs and expense ratios (percent-of-sales method) when preparing pro forma financial statements will trend to _______ overstate costs and overstate profits, overstate costs and understate profits, understate costs and overstate profits, or understate costs and understate profits.

### Improve Collection Practices and Pay Accounts

A firm has a current ratio of 1; in order to improve liquidity ratios, the firm might ______. improve its collection practices, thereby increasing cash and increasing its current and quick ratios, improve its collection practices and pay accounts payable, thereby decreasing current liabilities and increasing its current and

### Break even points are denoted.

You own a company that manufactures and sells widgets. Your sales for last year were \$100,000. Each widget sells for \$8.50. The cost of material for each widget is \$4.00 and last years labor cost was \$285,000.00. The fixed costs for the operation are \$185,000. What is the break-even in widgets and dollars.

### 1) If they borrow \$2 million at 10% and use it to retire stock, how will the return on their investment change if operating income remains the same? 2) What is the maximum receivables balance Partridge can tolerate and still receive a good rating with respect to credit and collections? 3) What percentage of its assets are financed by equity? 4) Calculate accounts receivable , inventory, current assets, current liabilities, debt, equity, ROA, and ROE. 5) What pure interest rate is implied by these assumptions? 6) What is the real risk free rate and the maturity risk premium for two-year debt?

1-Gatwick Ltd. has after tax profits of \$500,000 and no debt. The owners have \$6 million invested in the business. If they borrow \$2 million at 10% and use it to retire stock, how will the return on their investment change if operating income remains the same ? Assume a flat 40% tax rate and that the loan reduces equity dollar f

### Ratio of liabilites to stockholders equity

Lowes is a major competition to Home Depot in the home improvement business and operates over 700 stores. For the years ending January 31,2003 and Feb 1,2002 lowes reported the following balance sheet data in millions. 2003- total assets-16,109 total liabilities-8302 2002- total assets-13,736- totoal liabilites-7062 a. det

### Data for Barry Computer Company and its industry averages follow

Data for Barry Computer Company and its industry averages follow: A. Calculate the indicated ratios for Barry. B. Construct and extend DuPont evaluation for both Barry and the industry. C. Outline Barry's strengths and weaknesses as revealed by your analysis. D. Suppose Barry had doubled i

### Determine the NLF, NSF and the liquidity ratio

Determine the NLF, NSF and the liquidity ratio for the FY ending on January 31st, 2004. Please show all work. Use the following links for Staples: http://finance.yahoo.com/q/is?s=SPLS&annual http://finance.yahoo.com/q/bs?s=SPLS&annual http://finance.yahoo.com/q/ks?s=SPLS

### Asset Activity Ratios (Average Collection Period; Inventory / Total Asset Turnover): Calculate the following asset activity ratios for the end of 1999. 1. Average Collection Period 2. Inventory Turnover 3. Total Asset Turnover

Use the attached information to answer the three questions that follow: Use the following information to answer the three questions that follow: ABC Fitness Company 000's INCOME STATEMENT Dec. 99 Sales 1968.016 Cost of Goods Sold 1466.733 Gross Profit 501.283 Selling and Ad. Expenses 361.402 Depreciation 35.7 Operat

### Times Interest Earned (TIE) Ratio problem

The Hr Picket Corporation has a \$500,000 of debt out standing and it pays an interest rate of 10% annually. Pickets annual sales are 2 Million dollars and its average tax rate is 30% and its net profit margin on sales is 5%. If the company does not maintain a TIE ratio of at least 5 times its bank will refuse to renew the loan

### Break even analysis is achieved.

How can break-even be used as a price setting model for the organization? How might it be helpful?

### Financial Ratios: Multiple Choice Question

Management's use of resources can best be evaluated by focusing on measures of: A. Liquidity B. Activity C. Leverage D. Book Value

### How can the break-even point be lowered?

How can the break-even point be lowered?

### Harding Company manufactures skates: compute ratios and break-even point in units

The Harding Company manufactures skates. The company's income statement for 2001 is as follows: (See attachment) Given this income statement, compute the following: a. Degree of operating leverage. b. Degree of financial leverage. c. Degree of combined leverage. d. Break-even point in units (number of skates).

### Building Financial Models The following tables contain financial statements for Dynastatics Corporation. a. Produce a set of financial statements for 2001. Assume that net working capital will equal 50 percent of fixed assets. b. Now assume that the balancing item is debt, and that no equity is to be issued. Prepare a completed pro forma balance sheet for 2001. What is the projected debt ratio for 2001?

Building Financial Models. The following tables contain financial statements for Dynastatics Corporation. Although the company has not been growing, it now plans to expand and will increase net fixed assets (that is, assets net of depreciation) by \$200,000 per year for the next 5 years and forecasts that the ratio of revenues to

### Attack ratio and Positive predictive value

I am having diffiuculty with 2 questions. 1. Does specificity, or prevalence have a greater effect on positive predicitve values (PPV)? 2. 200 people at a dinner. 122 people get sick. 150 (of the 200) had ice cream- 118 got sick, while- 50 (of the 200) had pie- 4 got sick. Which desert was responsible for the ill

### Fixed annual and variable costs

Please help me solve this problem. The Retread Tire Company recaps tires. The fixed annual cost of the recaping operation is \$60,000. The variable cost of recapping a tire is \$9. The company charges \$25 to recap a tire. a) For annual volume of 12,000 tires, determine the total cost, total revenue, and profit. b) Determine

### Contribution margin

Andre has asked you to evaluate his business, Andre's Hair Stylling. Andre has five barbers working for him. (Andre is not one of them.) Each barber is paid \$9.90 per hour and works a 40-hour week and a 50-week year, regardless of the number of haircuts. Rent and other fixed expenses are \$1,750 per month. Assume that the only se

### Statement of Cash Flow: The financial statements of Frank B Robinson Company appear below. a) Prepare a statement of cash flow using the indirect method b) Compute the following cash basis ratios 1) Current cash debt coverage ratio 2) Cash return on sales ratio 3) Cash debt coverage ratio

The financial statements of Frank B Robinson Company appear below (See attachment) Additional Information ?          Dividends declared and paid were \$ 3000 ?          During the year equipment was sold for \$ 8500 cash. The equipment cost \$18,000 originally and had a book value of \$8,500 at the time of

### Using only one financial ratio is examined.

What are the shortcomings of analyzing companies using only one financial ratio?

### an example of ratio analysis

Can you please explain an example of ratio analysis before? Where would it be helpful? Where could it hurt?

### Debt-Equity Ratio and Calculating WACC

A company has a debt-equity ratio of 1.5. Its WACC is 14%, and its cost of debt is 9%. There is no corporate tax. A. What is the company's cost of equity capital? B. What would the cost of equity be if the debt-equity ratio were 1.0? What if it were 0.5? What is it were 0?

### Calculate the following asset activity ratios for the end of 1999. 1. Average Collection Period, 2. Inventory Turnover, 3. Total Asset Turnover

Use the following information to answer the three questions that follow: ABC Fitness Company 000's INCOME STATEMENT Dec. 99 Sales 1968.016 Cost of Goods Sold 1466.733 Gross Profit 501.283 Selling and Ad. Expenses 361.402 Depreciation 35.7 Operating Income (EBIT) 104.181 Interest Expense 34.482 Other Expense 14.124 EB

### Accounting - Financial Ratios

Financial Ratios: Given below are comparative balance sheets and an income statement for the Richmond Corporation...Please see attachment for table All sales were made on account. Cash dividends declared during the year totaled \$57, 150. Compute the following: a) Average accounts receivable turnover b) Average invento

### Help

1) Chuck McElravy owns Common Grounds Coffee House, near the campus of Manatee College. The business has cash of \$2,000 and furniture that cost \$8,000. Liabilities include accounts payable of \$1,000 and a \$6,000 note payable. How much equity does McElravy have in the business? Using the above figures, write the accounting eq

### Calculating Ratios etc

1. Calculating Ratios. Here are simplified financial statements of Phone Corporation from a recent year. Income Statement (Figures in millions of dollars) Net Sales 13,193 Cost of goods sold 4,060 Other Expenses 4,049 Depreciation 2,518 Earings before interest and taxes (EBIT) 2,566 Int

### Two Primary Financial Perspectives

What are the two primary financial perspectives used when performing financial ratio analysis? Please explain. How may years of financial reports should one review at the same time?