Calculate the ratios

Assignment Help Financial Accounting
Reference no: EM13129790

Analyzing Whirlpool's Acquisition of Maytag
To complete the requirements below you will need to obtain Whirlpool's income statements for 2005, 2007, and 2008, and its balanmce sheets for 2004 through 2008. The easiest way to obtain these income statements is to retrieve the company's 2005 and 2008 Form 10-Ks. To obtaim the Form 10-Ks you can use the EDGAR system followimng the instructions in Appendix A, or they can be found under the "Investors" link on the company's corporate website, www.whirlpoolcorp.com. On March 31, 2006, Whirlpool Corporation acquired Maytag, another manfacturer of home appliances. The company 2006, 2007,and 2008 finncial statements include the activities of May tag; its 2005 and 2004 statement do not.

Required

a. Calculate the following ratios for 2005, 2007, 2008 show your calculations.

Gross margin percentage net margin
Return on investment Return on equity
Current ratio Debt to assets ratio

b. Base on the ratios computed in requirement a, comment on the apparent effects of Whirlpool's acquisition of Maytag. Assume any significant change in these ratios was the result of the aquistion.

c. Based on this limited analysis, does it appear that the short-term effects of the acquisition were good or bad for Whirlpool

Reference no: EM13129790

Questions Cloud

Calculate the wavelength and wavenumber of the photon : Consider a molecule with spacing between two energy levels of 0.250 kJ mol-1. Calculate the wavelength and wavenumber of the photon that would be needed to lead to an excitation between these two levels.
How common are dividend distributions in today economic : How common are dividend distributions in today's economic climate, particularly since the economic downturn of 2008 and 2009? Please comment on whether dividend distributions are concentrated in the companies that are publicly traded or whether cl..
Describe whether you believe an accounting process : it was the accounting rule that caused the financial institutions' balance sheets to look bad. Describe whether you believe that following an accounting process can cause a company to experience economic problems.
What should the unit price be : Cara has received a special order from a foreign company for 5,000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $4,250 for shipping.
Calculate the ratios : Base on the ratios computed in requirement a, comment on the apparent effects of Whirlpool's acquisition of Maytag. Assume any significant change in these ratios was the result of the aquistion. Calculate the ratios?
Illustrate what pretax amounts related to the lease : What pretax amounts related to the lease would Georgia-Atlantic report in its balance sheet at December 31, 2011? Illustrate what pretax amounts related to the lease would Georgia-Atlantic report in its income statement for the year ended December ..
Explain gordon gekko in movie wall street that greed is good : Explain the view of Gordon Gekko in the movie Wall Street that "greed is good". Then, explain Solomon's analysis and critique of this notion. Describe an instance or example that you believe exemplifies "greed" in the current financial crisis.
What amount of loss may monica use for the current year : Monica (not in the loan business) loaned Lateisha $25,000 two years ago. During the current year, Lateisha declared bankruptcy. The bankruptcy trustee informed the unsecured creditors that no assets are available for distribution from the bankrupt..
Problem regarding preferred stock at par value : On June 1, Year 5, the common stock split 3 for 1, and the company redeemed one-half of the preferred stock at par value. Cooper Inc.'s net income for the year ended May 31, Year 6 was 10% higher than in Year 5. Basic earnings per share in Year 6 ..

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd