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# Financial Ratios

### Calculation of Receivables Turnover Ratio

I would like to know if I have correctly identified the correct dollar amounts from the attached financial statements for calculating Receivables Turnover ratio. One of the things I am not certain of is whether I should be working with both the Net Sales Revenues for Dec 31, 2009 and Dec 31, 2008, or with just the Dec 31 2009. I

### Four Key Financial Ratios

Managers rely on financial ratio analysis when making decisions. What are the four key ratios? What information does each provide?

### Financial Ratios: Intel 2008

Requirement 1: Compute the following profitability measures for the year ended December 27, 2008: (a) Return on investment, based on net income (perform a DuPont analysis). (b) Return on equity, based on net income. (c) Price/earnings ratio. (d) Dividend yield. (e) Dividend payout ratio. Requirement 2: Compute the f

### Break-Even Point Analysis

Give an example from your own experience where you used a break-even point analysis. What parameters were necessary to find the break-even point?

### Break-Even and Budgeting

1. The break even or cost volume profit (CVP) model is based on a number of assumptions. Discuss these assumptions and whether or not they are correct in the real world. Finally, discuss how CVP analysis can be useful in planning. 2. Describe the advantages and disadvantages of budgeting

### Accounting: Computing Ratios for the Yadier Corporation Case

The attached MS Excel spreadsheet contains detailed instructions for the calculation of financial ratios for the Yadier Corporation exercise; including, current ratio, acid-test ratio, accounts receivable turnover, profit margin, asset turnover, return on assets, return on common stockholders' equity, and debt to total assets.

### Break Even Point at Foxy Shirts and Farris Billiard Supplise

1. Gina Fox has started her own company, Foxy Shirts, which manufactures imprinted shirts for special occasions. Since she has just begun this operation, she rents the equipment from a local printing shop when necessary. The cost of the equipment is \$350.00. The materials used in one shirt costs \$8.00, and Gina can sell these fo

### Managerial Accounting and Ratio Computation

The following calendar year-end information is taken from December 31,2011, the adjusted trial balance and other records of Plaza company. Advertising expense 30,750 Depreciation expense-Office equipment 9,250 Depreciation expense-Selling equipment 10,600 Depreciation expense-factory equipment 35,550 Factory supervisi

### Influence of Pay Ratio and Equity on Employee Performance

Describe the influence that pay ratio and pay equity has on employee performance and the importance of relating pay to the strategy and tactics of the organization.

### Computation of times interest earned ratio and debt-to-equity ratio

Comparative financial statements for Heritage Antiquing Services for the fiscal year ending December 31 appear on the following page. The company did not issue any new common or preferred stock during the year. A total of 500 thousand shares of common stock were outstanding. The interest rate on the bond payable was 10%, the inc

### Ratio Analysis for McDonalds and Wendy's, 2010 & 2011

PART 3, RATIO ANALYSIS: (1) LIQUIDITY: FY 2010 FY 2011 Current Ratio: McDonalds ____ ____ Wendy's ____ ____ Quick Ratio: McDonalds ____ ____ Wendy's ____ ____ Comments On McDonalds Liquidity: Be sure to include comments! The numbers are meaningless by themselves. Comment on what

### Transaction Effects on Financial Ratios

Indicate the effect that each transaction/event listed here will have on the financial ratio listed opposite it, and provide an explanation for your answer. Use + for increase, - for decrease, and (NE) for no effect. Assume that current assets exceed current liabilities in all cases, both before and after the transaction/event.

### Financial Ratio Understanding

Why is it important to understand the calculation and interpretation of ratios to complete a financial ratio analysis? Please provide pros and cons.

### Ratio, Vertical, and Horizontal analyses

Examine PepsiCo, Inc.'s Consolidated Balance Sheet on p. A6 in Appendix A of Financial Accounting, especially its Current Assets, Current Liabilities, and Total Assets for years 2004 and 2005. Calculate the following for PepsiCo, Inc. and show all calculations: a) Debt to total Asset Ratio for 2005 b) Debt to total Asset

### Balance Sheet, Income Statement and Financial Ratio Analysis: Caribou Coffee and Fazer Group

Review of the income statement and balance sheet and compute the ratios for Caribou Coffee and Fazer Group. Financial Rations: Profitability ratios: Gross profit margin Net profit margin Return on stockholders' equity Liquidity ratios: Current ratio Quick ratio inventory turnover Leverage ratios: Debt-to-a

### Cell Phone - Industry Analysis

Complete an Industry analysis. Describe and analyze the following: a. Barriers of Entry b. Barriers of Exit c. Customer Buyer Power d. Supplier Selling Power e. Product Substitutes f. Competitive Rivalry Do not ramble, or re-define the concepts, apply them and be precise. Make your points in approximately 6 paragraphs;

### Limitations of Financial Ratio Analysis for Non-Profit Organizations

United Way of Metropolitan Chicago is a nonprofit, tax exempt corporation. Because it receives significant revenue in its annual campaign from large corporations, a recent reform of the board of directors resulted in a majority of directors from the Civic Committee of the Commercial Club that were corporate Presidents. The Civ

### Discussion of Financial Ratio Analysis

Hi, I need help with a written paper on financial ratio analysis. I need to discuss what is it used for and how to use it. I am not too sure how to approach this. Any assistance would be appreciated. Also, could you tell me about some of the weaknesses of using financial ratios.

### Financial Statement Analysis Problem

Marva Rossen, who just two years ago was appointed president of Hedrick Company, admits that the company has been "inconsistent" in its performance over the past several years. But Rossen argues that the company has its costs under control and is now experiencing strong sales growth, as evidenced by the more than 24% increase in

### Financial Performance Analysis: Sparklin Automotive Company

Write a memo to your superior analyzing the performance of Sparklin Automotive Company for 2010 and 2011. This analysis should be based on the information found in the consolidated financial statements. Your memo should include the following financial ratios and a comparison of the ratios over the two-year period: - current

### Dell: Liquidity, inventory turnover ratio, DuPont analysis

1. What has happened to Dell's liquidity position over the past 3 years? How does Dell's liquidity compare with that of its peers? 2. Take a look at Dell's inventory turnover ratio. How does this ratio compare with that of its peers? Have there been any interesting changes over time in this measure? Do you consider Dell's i

### Ratios and Fixed Assets - Hooya Company.

How do you find Net Fixed Assets in this problem? The Hooya Company has a long-term debt ratio (i.e., the ratio of long-term debt to long-term debt plus equity) of 0.7 and a current ratio of 1.1. Current liabilities are \$900, sales are \$4,180, profit margin is 11 percent, and ROE is 18.5 percent. The firm has \$ ____in net

### Find the break even point and output level at which Richard would prefer the second process.

Richard Winchester, owner of Winchester Products, is considering introducing a new product which will require \$25,000 of initial investment for plant and equipment. Winchester estimates the variable costs approximately at \$10 per unit. a) If the unit selling price is set at \$30, how many units must be produced and sold per ye

### Gearing and Calculating Earnings per Share

Tobi Industries wishes to undertake a project that will cost R2 500 000. The project has already been evaluated and has a positive net present value. The decision now facing management is how to finance the project. Three alternative financial "packages" are under consideration: - Issue 1250 000 new ordinary shares at 200 cents

### Standard patterns of behavior in the workplace

Employees need a "standard" to pattern their behavior in the workplace. What part does breaking protocol and speaking directly to "prohibited" levels of management stifle employee promotions or their ability to relate to their managers?

### Financial Ratios: Medical Group and Industry

Attached is the financial ratios for Medical group as well as the industry. 1. Interpret the financial ratio of this company for 2009, 2010 and 2011 2. Compare the Medical hospital number for the year of 2009. 2010 with the industry ratios for the year 2009 and 2010. How does the hospital compare with the national norm? 3.

### Evaluating Elements

In Chapter 7 of Writing Today, you'll find a student evaluation, Danielle Cordaro's "How We Ended Up in Louisville: An Evaluation of Spring Break Options" (pp. 104-106.) Cordaro evaluates the pros and cons of three spring break options before finally deciding on Louisville. What is her organizational pattern, and what details d

### 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