Explore BrainMass

Explore BrainMass

    Financial Ratios

    BrainMass Solutions Available for Instant Download

    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?

    Financial Statements

    I need some assistance in answering the questions below. 1. Why are companies required to prepare a statement of cash flows? Why is the statement of cash flows divided into three sections? What does each section tell you about a company's operations? 2. What are some common ratios used to analyze financial information? W

    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 Problem

    So if I sell wigs, which have a huge profit margin of 70%, and I sell cups which only have a thin 10% margin, is the break even analysis effective or are these product margins too far apart? Please explain.

    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'

    Determining Breakeven Point: Ruben Corporation

    Corresponds to CLO 2(c) Ruben Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for $7.50 each, and the variable cost to manufacture them was $2.25 per unit. The company needed to sell 20,000 shirts to break even. The net income last year was $5,040. Ruben's expectat

    Using ratios to evaluate a stock investment

    Comparative financial statement data of Danfield, Inc., follow: (See Attachments) 1. Market price of Danfield's common stock: $86.58 at December 31, 2012, and $46.54 at December 31, 2011. 2. Common shares outstanding: 12,000 during 2012 and 10,000 during 2011 and 2010. 3. All sales on credit. Requirements 1. Compute


    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

    BEP & Margin of Safety Problems

    Modern home appliances company places before you the following trading results: Year Sales Net Income 2008 $50,000 $5,000 2009 $60000 $9000 Calculate the following: (a) Contribution margin ratio, (b) Fixed cost, (c) Variable

    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: http://www.annualreports.com/Company/5072 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

    Determing a Break-Even Point

    John owns a shaved ice stand. He sells 700 shaved ice cups per month at $1.50 each, making the total revenue $1050. Each shaved ice costs John $0.50 and he has fixed cost of $750, making his total costs $1100. Therefore, he realizes a loss of $50 a month. Help him to determine what his break even point is.

    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 www.sec.gov. 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