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Financial Ratios

Liquidity Ratio Calculations

Nordstrom Inc. operates department stores in numerous states. Selected financial statement data for the year ending January 29, 2012, are as follows. NORDSTROM, INC. Balance Sheet (partial) (in millions) E

Baldwin Company Ratio Analysis

Selling expense to sales 10.1% 14.0% 15.6% Sales to plant assets ratio 3.8 to 1 3.6 to 1 3.3 to 1 Current ratio 2.9 to 1 2.7 to 1 2.4 to 1 Acid-test ratio 1.1 to 1 1.4 to 1 1.5 to 1 Inventory turnover 7.8 times 9.0 times 10.2 times Accounts Receivable turnover 7.0 times 7.7 times 8.5 times Total assets turnover 2.9 t

Ratio, Interval, Ordinal, and Nominative Scales

Suppose you work for a bank. The vice president of marketing has assigned you to gather data for use in a competitive analysis of the bank's customer service. She asks you to compare the customer service in your bank's branches with that of the other three major banks in the city. - What data would you want to gather, and why

The Times Interest Earned Ratio

I need assistance with the 2 questions below. Attached is the income statement and balance sheet. 1. Show the calculation for the ratio Times interest earned 2. What do the liquidity, profitability, and solvency ratios reveal about the company's financial position?

Pete's Pet Products is a sole proprietorship owned

Pete's Pet Products is a sole proprietorship owned by Pete Thompson. The store provides a full-line of pet products, including food, grooming materials, toys, leashes, etc. The company also sells hand-made pet houses, including dog houses, bird cages, and cat castles. Each of the pet houses is being evaluated in terms of cost-vo

Problem 13-5 CCB Enterprises Basic Financial Ratios

The accounting staff of CCB Enterprises has completed the financial statements for the 2008 calendar year. The statement of income for the current year and the comparative statements of financial position for 2008 and 2007 follow. CCB Enterprises Statement of Income For the Year Ended December 31, 2008 (Thousands

Practice multiple choice problems in accounting

Financial practice accounting multiple choice Financial statement ratios support informed judgments and decision making most effectively: a. When viewed for a single year. b. When viewed as a trend of entity data. c. When compared to an industry average for the most recent year. d. When the trend of entity data is

Break-Even Analysis & Planning

Pringly Division A meeting of senior managers at the Pringly Division has been called to discuss the pricing strategy for a new product. Part of the discussion will focus on estimating sales for the new product. Over the past years, a number of new products have failed to meet their sales targets. It appears that the company'


1. Use the financial statements for Bernard Company from Problem 9-22 to calculate the following from 2012 and 2011. Bernard Company Balance Sheet As of December 31 2012 2011 Assets Current assets Cash $16,000 $12,000 Marketable securities 20,000 6,000 Accounts receivable (net) 54,000 46,000 Inventories 135,000 143

Common Ratios Used to Analyse Financial Information

What are some common ratios used to analyze financial information? Which are the most important? What are some examples of how ratios are used in the decision-making process? Two popular methods of financial statement analysis are horizontal analysis and vertical analysis. What are the differences between these two methods?

P2-24 Integrative: Sterling Company's financial ratios for the most recent year

P2-24 Integrative?Complete ratio analysis Given the following financial statements (below and on page 96), historical ratios, and industry averages, calculate Sterling Company's financial ratios for the most recent year. (Assume a 365-day year.) Analyze its overall financial situation from both a cross-sectional and a time-se

Tootsie Roll Industries Inc. Loan Package

Read the financial statement for Tootsie Roll Industries Inc. The financial statement can be found here: Conduct an Internet search information on how to assemble a loan package by researching loan package requirements at The U.S. Small Business Administration website (http://www.sba

UABC: Common sizing, solvency, performance ratios

A. Prepare a comprehensive analysis of UABC for 2011, including the following measures (round all calculations to three decimal places. 1. Short-term solvency ratios (current ratio, acid test, inventory turnover, and days sales in receivables ratios) 2. Long-term solvency ratios (debt-to-equity and times-interest-earned ratio

break even analyses

Break even analysis utilizes both current and projected figures. In a rapidly changing economy, there are many individuals who are finding that their initial break even analyses were incorrect. In your opinion, what could be done to minimize errors in projections?

Analysis of financial statements

Choose a publicly traded company and perform an expanded analysis on the financial statements. Please use the most current financial statements available on Perform horizontal and vertical analysis, selected liquidity, profitability, and solvency ratios, and other selected financial ratios. A one page executive summ

Ratio Analysis between McDonalds and Burger King years 2010 and 2011

Ratio Analysis portion of the case study report and submit it as an attachment here. Note that your Ratio Analysis should include ratios for the years 2010 and 2011 and should include comparisons between McDonalds and Burger King. Organize your ratio analysis per the following outline: 1. Liquidity -Current ratio -Quick

Ratio analysis, proforma analysis, NPV for Friendly Cards Inc

Using the Case: "Friendly Cards Inc." (Harvard Business School case, no. 9-293-135): 1. Perform a ratio analysis of Friendly Cards for 1985-1987 and discuss the company's health. Decided if Friendly Cards should accept the West Coast investors offer and issue new equity. 2. Perform a Pro Forma Analysis for Friendly Card

Hotel Financing

COMPARING INDUSTRY RATIOS (BASIC) You are interested in investing in a regional hotel company and have investigated the financial statements of four potential investments. Use the information in the table below to answer the questions at the bottom of the page. Hotel N Hotel J Hotel C Ho

Financial Analysis of Companies

1. Under what circumstances might a company have a high p/e ratio even when investors are not optimistic about the company's future prospects? 2. Assume that you have several thousand dollars to invest in the stock market. Given that "people will always have to eat," you have decided to explore the possibility of investing in

Contribution margin ratio, net income, markup percentage

1. One Small Grill Company is a start up with the following profile: Unit selling price = $230; Variable cost per unit = $130; Fixed Costs = $36,000; Tax rate = 40%. How many units should Small Grill sell to achieve an after-tax target income of $6,000? A) 200 B) 460 C) 230 D) 300 2. JungleGym, a best-selling toy ha

Current ratio, leverage, risk ratios, firm's performance measures

Q12: Airlux Antarctica has current assets of $300 million, current liabilities of $200 million, and a crash-sorry-cash ration of .05. How much cash and marketable securities does it hold? Q18: Current Ratio. How would the following actions affect a firm's current ratio? a. Inventory is sold. b. The firm takes out a bank loa

Break-Even Analysis and Planning

Pringly Division A meeting of senior managers at the Pringly Division has been called to discuss the pricing strategy for a new product. Part of the discussion will focus on estimating sales for the new product. Over the past years, a number of new products have failed to meet their sales targets. It appears that the company'