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Financial Ratios

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.

Ratio's of a company's current position

I have attached an Excel spreadsheet listing the current ratio's as of December 2012. Can you please help in explaining their position compared to the industry standard? Please provide alternative's as to how to improve or what might be going on. Reference: http://www.thestreet.com/quote/WFM/details/growth-rates.html

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 www.msn.com 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

Annual report analysis: technology sector

Part 1 Review the Management Discussion and Analysis section of the latest annual report for two of the following organizations and discuss the management's perspective of the organizations future. Which organization is to be considered the leader company and the other is the challenger company? Technology Sector: (www.googl

The best time to buy robots in manufacturing

Robots, through depreciation, would be included in fixed costs. The cost to run them would be included in overhead. If the sales volume went down, the company would not be able to cover the fixed costs. What should the company have done before buying the robots to prepare a full financial analysis?

Turnover Ratio & Break-Even/Margin of Safety

There are two Experts I've had the pleasure working with (1 is you) and both of you explain these problems in a way I can understand them. So thank you for that!! 1. Adam Company offers two products. At present, the following represents the usual results of a month's operations:

The Griggs Corporation: Creating a Balance Sheet from Ratios

The Griggs Corporation has credit sales of 1,200,000. Given the following ratios, fill in the balance sheet below. Total assets turnover - 2.4 times Cash to total assets - 2.0% Accounts receivable turnover - 8.0 times Inventory turnover - 10.0 times Current ratio - 2.0 times Debt to total assets - 61.0% Griggs Corpor

Ratio Trends

Company "A" has the follwing ratios over 2 years: Year 1 Year 2 Current ratio 0.88 0.87 Debt ratio 58.96% 57.28% Return on Equity 19.98% 19.66% Please state the trend of each ratio over the 2

Balance Sheet and Market Value of General Mills

Refer to General Mills most recent balance sheet. Review the "liabilities and equity side" of the balance sheet. A) Short term liabilities (or debt) and long term liabilities. Find out from the balance sheet of the company the total of the short term liabilities (also called 'short term debt') and long term liabilities (also

Ratio of Cost to Charges

An uninsured patient receives services with charges of $5,000 from a hospital. The hospital staff bills the patient $1,000 and records $4,000 as charity care. If the hospital's ratio of cost to charges is 50%, what amount would the hospital recognize as charity care in Schedule H of IRS Form 990? A. $5,000 B. $2,00

Market-to-book ratio

A company has current assets that have an estimated book value (if sold) of $20 million. The fixed assets book value is $120 million, but the market value (if sold) is $180 million. The company has total debt on the books of $80 million; however interest rate declines have increased the market value of the debt to about $100 mil

Calculating Return: Sales Ratio, Assets, Equity

S&J Plumbing, Incorporated's income statement shows a net profit before tax of $468 and net sales of $7,482 for 2010. Total assets are at $3,244. The balance sheet lists the company's equity for fiscal year ending 2010 as $1,746. Calculate the following ratios for this company: -Return on sales ratio (net profit margin)

Margin Ratio and Net Income

A company's manager estimates that in the upcoming year, decreasing advertising costs by $35,000 will cause sales revenue to decrease by $80,000. if the company's contribution margin ratio is 40% what will be the overall effect on net income? a) Net income will increase by $3,000 b) Net income will decrease by $3,000 c) Net

Hunter Inc.: Analysis of Net Income and Margin Ratio

Hunter Inc. sells a unique product with the following information available: Sales price - $85 per unit Variable costs- $25 per unit Fixed costs- $10,000 Units produced and sold - 1,250 1. If one more unit is sold, net income will: a) decrease by $33 b) increase by $52 c) increase by $60 d) decrease by $8 2. W

Expected Payout Ratio

General Electric's expected net income for next year is 1,000,000. The company's target and current capital structure is 40 percent debt and 60 percent common equity. The optimal capital budget for next year is 1.2 million. If John uses the residual theory of dividends to determine next year's dividend payout, what is the exp

PROBLEM 15-19 Incomplete Statements; Analysis of Ratios

Incomplete financial statements for Tanner Company are given below: Tanner Company Income Statement For the Year Ended December 31 Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,700,000 Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . ? Gross margin . . . .