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Financial Ratios

Financial Measurements and Ratios

49. Income statements for LaRue Co. show the following: 2011 2010 2009 Sales (net) ..................... $500,000 $400,000 $350,000 Cost of goods sold: Beginning inventory ............. 110,000 90,000 20,000 Purchases ....................... 420,000 330,000 370,000 $530,000 $420,000 $390,000 Ending inventor

Financial Management: Depreciation, Variable Pricing

You are considering a new product launch. The project will cost $1,550,000, have a four-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 150 units per year; price per unit will be $19,000, variable cost per unit will be $11,000, and fixed costs will be $460,000 per year. The req

Net Present Value of a Depreciable Asset

Dog Up! Franks is looking at a new sausage system with an installed cost of $490,000. This cost will be depreciated straight-line to zero over the project's five-year life, at the end of which the sausage system can be scrapped for $72,000. The sausage system will save the firm $170,000 per year in pre-tax operating costs, and t

Calculating financial ratios and interpreting

Using the sample financial statements, calculate the financial ratios and then interpret those results against historical data and industry benchmarks. Write a 350- to 700-word summary of your analysis. Show financial calculations where appropriate.

Cash Flow Problems

1. The payback period is the length of time it takes an investment to generate sufficient cash flows to enable the project to: A. produce a positive annual cash flow. B. produce a positive cash flow from assets. C. offset its fixed expenses. D. offset its total expenses. E. recoup its initial cost. 2. The average net

Capital Structure Multiple Choice

True/ False: 2 points each 1. The degree of operating leverage is an index number that measures the effect of a change in sales price on the operating breakeven point__________. 2. The degree of financial leverage gives an indication of how a change in EBIT will affect EPS_________. 3. Other things held constant, a high degre

Stock, Dividends, and Financial Ratios

1. Patience Inc. just got paid a dividend of $2.35 per share on its stock. The dividends are expected to grow at a constant rate of 4.5% per year, indefinitely. If investors require an 11% return on this stock, what is the current price? What will the price be in 3 years? In 15 years? 2. The next dividend payment by Moss Co

Users of Financial Ratio Analysis

1.There are several different groups that use financial ratio analysis. Who are these groups and what are the primary concerns of each? 2.It has been said that a balance sheet is a snapshot of the firm at some point in time. What does this mean? How does it differ from what the income statement is showing? 3.What is the prima

Loan Evaluation: Financial Ratios and Loan Decisions

As a practitioner-researcher, you will apply knowledge to real-life situations. In the following scenario, assume you are a loan officer for a bank and the owner of a small business approaches you regarding a loan. Consider the following questions as you formulate your decision: - What financial ratios would you examine and w

Assessing a Variety of Business's Financial Ratios

Working on an assignment and need help with the following: For the past year, De Vries, Inc. had a cost of goods sold of $59,382. At the end of the year, the accounts payable balance was $13,689. How long on average did it take the company to pay off its suppliers during the year? What might a large value for this ratio im

Introductory Finance Ratios

1. Ermy corporation has ending inventory of 682,173 and cost of goods sold for the year jsut ended was $6,487,318. What is the inventory turn over? THe days' sales in inventory? How long on average dud a unit of inventory sit on the shelf before it was sold? 2. Boyd Inc, has a total debt ratio of 0.45. What is its debt-e

Halfway Company Ratios and Account Information

Halfway Company: See the attachment for the full information. 1a Compute current ratio for both years. 1b Compute quick ratio for both years. 1c Comment briefly on Halfway's liquidity position. 1d Identify the chief weakness of current ratio as an analytical tool. 2a Compute days sales in accounts receivable for 2012 and

Rocky Mountain Catering Company: Break even

Rocky Mountain Catering Company. The budget data for 20X5 are as follows: (Use Excel to answer these.) Chicken Tacos Beef Enchiladas Selling price to restaurants $5 $7 Variable Expenses $3 $4 Contribution Margin $2 $3 Number of meals 250,000 125,000 The company prepares the items in the same kit

Home Depot Ratios

For Home Depot: Analyze these ratios versus industry: Profit as percent of sales Current ratio Debt to equity ratio Return on Equity (ROE) Discuss how these ratios depict the financial health of this company as compared to the industry average and what the company might do to get better in each area.

FASB Cases: Sales Returns, Drummond Company, Lion Company

Mini-Case # 1 You and your colleagues are having a discussion about sales returns. One person thinks that you should give customers whatever kind of sales return policy it takes to beat out competitors and drive up sales revenue. As an accountant you think that FASB might have other ideas about customers being able to return

Milton Friedman Goal of the Firm

Prepare a paper using APA format discussing the Milton Friedman Goal of the Firm. Does this goal still apply to our understanding of the role of the business firm in society? Provide examples to support your understanding. Does government or society have a role to play in expanding the Friedman discussion?

Financial Ratios and Risk Analysis

Blemker Corporation has $500 million of total assets, its basic earning power is 15%, and it currently has no debt in its capital structure. The CFO is contemplating a recapitalization where it will issue debt at a cost of 10% and use the proceeds to buy back shares of the company's common stock, paying book value. If the compan

Liquidity: Working Capital/Current Ratio

Following are the current asset and current liability sections of the balance sheets for Calketch, Inc, at August 31, 2014 and 2013 (in millions) Current assets: August 31, 2014 August 31,2013 cash $18 $36 marketable securities

Evaluating Financial Ratios

In anticipation of Mary's request for comparative analysis, it will be useful at this time to do some research for the PowerPoint presentation you are working on for Apex. You know that you can obtain the financials of companies within the same sector or Standard Industry Code as Apex Printing (i.e., commercial printing), and th

A Response to the EITF Recommendation

Issue No. 13-C, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward or Tax Credit Carryforward Exists." The settlement of a liability for an unrecognized tax benefit may be reduced by a net operating loss (NOL) carryforward or a tax credit carryforward as required by U.S. tax law. The IRS does not

Free Cash Flow, Ratio Analysis, and Cash Referencing

1. Explain free cash flow and its importance to a business. 2. Explain the weaknesses of ratio analysis 3. Contrast sources and uses of cash referencing using at least two examples of assets and liabilities (four total). Provide examples of how cash is used or provided depending on whether it is categorized as an asset or liab

Emerging Issues Task Force

Issue No. 13-C, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward or Tax Credit Carryforward Exists." The settlement of a liability for an unrecognized tax benefit may be reduced by a net operating loss (NOL) carryforward or a tax credit carryforward as required by U.S. tax law. The IRS does not

Asset Management Questions

I need an elaborate full explanatory step-by-step solution to the 4 questions in the attached file. The solution should be in a Word document file showing the formulas in in each question writing the formulas manually in front of each in order to know and understand clearly the components of the formulas and the topic so that th

Term Break-Even Analysis

Perform an Internet search using the term break-even analysis. Select and read a case study or article from the results of your search. Summarize the case study or article.

Calculating Ratios for Coca Cola 10-K Report

Calculate the following ratios. Using the data from coca cola 10-k report filed with the SEC. Below are the data needed to complete this task (see attachment). Profitability ratios: 1. Profit Margin 2. Return on assets( investment) 3. Return on equity Asset Utilization Ratios 4. Receivable turnover 5. Inventory turnov

Ratio Analysis: Dell INC

Use to find financial statements for any "for profit" company in the computer hardware industry. 1.enter the company symbol 2.go to menu on left side of screen 3.go to financial results 4.go to financial ratios Complete a ratio analysis for that company's last year's financial data. At a minimum, list and di