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Financial Ratios

Information relates to the break-even point at Pezzo Corporation

The following information relates to the break-even point at Pezzo Corporation: Sales dollars ...................... $120,000 Total fixed expenses .......... $30,000 If Pezzo wants to generate net operating income of $12,000, what will its sales dollars have to be? A) $132,000 B) $136,000 C) $168,000 D) $176,000

break even, what if, high-low

High Low, Profit Equation [Lo 2] Rhetorix, Inc. produces stereo speakers. Each unit (a pair of speakers) sells for $900. Below is information on production/sales and costs for 2010. Production and sales in unit Production costs Selling and Admin Costs January 105

Debt Ratio

Please help with the following problem regarding debt ratio. Include references in the solution. The debt ratio of Ryznak Industries, a Japanese corporation, is 62%. Why might this be difficult to compare to the debt ratio of a U.S. manufacturing corporation? A) U.S. companies generally have debt ratios greater than 62%

Financial Ratios in same industry: Dangerous?

Need help in discussing and addressing the following concerning financial ratios: Do you think it is dangerous or misleading to compare financial ratios with other firms in the same industry? Why or why not?

Ratio Analysis for McDonald's Corporation

Has the financial performance of McDonald's Corporation improved or declined year-over-year? Provide an analysis of the performance of the firm based on the analysis tools used, and a summary of the company's financial performance and assessment of whether it has improved or declined year-over-year in terms of profitability, ass

BEP, CM Ratio and degree of operating leverage

Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable costs are high, totaling $15 per ball, of which 60% is direct labor cost. Last year, the company sold 30,000 of these balls, with

Pringly Division: break even analysis

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'

Darlarna Furniture LTD - Financial ratios

Populate the answers in the Financial ratios Word .doc chart for years 2006, 2007, and 2008 based on the financial statements on pages 4 and 5 in the Darlanrna Furniture Ltd (910B02) case study. - Comment on the differences between case study ratios and the industry averages. - Conduct a vertical analysis of income statem

Ratio Analysis Overview

See attached Excel file. This first part of this file is an overview of ratio analysis. The second part is specific instructions on how to do Discussion Board 2. Ratio analysis is a way to make the numbers given in financial statements come alive and tell you about the operations and risk of the company you are analyzing or t

Using Ratio Analysis to Complete a Balance Sheet

The following balance sheet information (in $ millions) comes from the Annual Report to Shareholders of Marriott International Inc. for the 2006 fiscal year. Certain amounts have been replaced with question marks to test your understanding of balance sheets. In addition, you are provided with the following informatio

Audit evidence: Evaluate inquiry and oral evidence, limitations of ratio analysis

1. Describe the factors that the auditor should consider in evaluating inquiry and oral evidence provided by client officers and employees? 2. Discuss the validity and limitations of inquiry and oral evidence? 3. Discuss the validity and limitations of ratio analysis in an audit. 4. Discuss the validity and limitations of the

Break Even Estimated Sales in Units

Tops Company sells Products D and E and has made the following estimates for the coming year: Product Unit Selling Price Unit Variable Cost Sales Mix D $30 $24 60% E 70 56 40 Fixed costs are estimated at $202,400. Determine: (a) the estimated sales in units of the overall product (Sales Mix) necessary to reach

Sprint-Nextel 2010 Ratio Analysis

Need the Liquidity, Solvency and Profitability measures based on the 2010 Sprint-Nextel Financial Statement. Show all formula and data input for each measure. Please refer to the consolidated statement where the data was obtained from. See link below and pages for Financial statement

Brewster Company: Using ratio analysis, compute ending inventory

Brewster Company has an acid-test ratio of 1.5 and a current ratio of 2.5. Current assets equal $200,000, of which $10,000 is prepaid expenses. The company's current assets consist of cash, marketable securities, accounts receivable, prepaid expenses, and inventory. Brewster Company's inventory must be: A) $30,000 B) $11

How to improve financial ratios.

The course is Corporate Finance The CFO wants a discussion on what the company can do to improve its financial ratios. A colleague of yours has some ideas, but you consider them somewhat radical. THE CFO likes debate and encourages each of you to outline your ideas of what the company can do. Analysis of ratios are attac

Ratio Analysis and Statement for Manufacturing Firms

Problem 1. The following information applies to Barnhart Company: Additional information: • Net Credit Sales = $220,000 • Beginning Accounts Receivable = $10,000 Solutions: a) Quick ratio = Quick Assets/Current Liabilities = (Cash + Accounts Receivable)/(Accounts Payable + Salaries Payable) ($12,000+5000


Problem 1. The following information applies to Barnhart Company: Additional information: - Net Credit Sales = $220,000 - Beginning Accounts Receivable = $10,000 Required: 1) Compute Barnhart's: a) Quick ratio b) Current ratio c) Working capital d) Accounts receivable turnover e) Average days to collect rece

Ratio analysis, overall financial condition and performance

See attached Vanguard file. 1. Calculate the firm's 2007 financial ratios. 2. Prepare an executive summary on the firm's overall financial condition and performance. Comment on the meaning of each ratio, discussing its trend and its comparison to the industry average.

Serendipity Sound Inc. Questions

Serendipity Sound, Inc. manufactures and sells compact discs. Price and cost data are as follows: Selling price per unit (package of two CDs) $ 25.00 Variable costs per unit: Direct material $ 10.50 Direct labor 5.00 Manufacturing overhead 3.00 Selling expense

Portfolio Weights, Expected Returns, and Standard Deviation

See attached file. #4. After examining the opportunity set, you notice that you can invest in a portfolio consisting of the bond fund and the large-cap stock fund that will have exactly the same standard deviation as the bond fund. This portfolio will also have a greater expected return. What are the portfolio weights and ex

Financial Analysis.

The following data are taken from the financial statements of R. Reid Company. The average number of shares of common outstanding for the year was $10,000. The following data are in the alphabetical order: A/P $25,000 A/R 76,000 Cash

Fine Manufacturing: Break even analysis to produce or sell the new product

George Fine, owner of Fine Manufacturing, is considering the introduction of a new product line. George has considered factors such as costs of raw materials, new equipment, and requirements of a new production process. He estimates that the variable costs of each unit produced would be $8 and fixed cost would be $70,000. (

Vanguard Target Retirement 2035 Fund

Look up the mutual fund at the Morningstar Star Rating site at Find its Morningstar Rating, Sharpe Ratio, and Standard Deviation (under Ratings and Risk). Explain what would happen to the Sharpe Ratio if the portfolio standard deviation is larger. Review the fun

Explain the Capital Intensity Ratio

Explain why the following statement is False: If a company's capital intensity ratio (A*/S0) decreases as sales increase, use of the AFN formula is likely to understate the amount of additional funds required, other things held constant.