Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question - At the end of 2021, ACME Corporation faced increasing competition leading to a build up of inventory and declining profitability and liquidity. In an effort to generate more revenue and improve the company's financial position, the management team determined that the best course was to reduce prices and extend generous credit terms that would generate higher sales and cash flow. The results of the initiative are shown in the following table:
Ratio
2021
2022
Industry
Profit Margin
10%
7%
12%
Gross Profit Margin
54%
51%
56%
Debt to Assets
68%
67%
72%
Times Interest Earned
6.1
3.5
4.3
Current Ratio
2.0
1.7
2.2
Accounts Receivable Turnover
8.1
5.2
6.0
Inventory Turnover
3.2
6.5
5.0
Free Cash Flow (thousands)*
$125
$97
$127
*Capital expenditures remained unchanged and no dividends were declared.
Using the above information to support your answer, complete the following analysis:
1. Discuss ACME Corporation's liquidity.
2. Discuss ACME Corporation's profitability.
3. Discuss ACME Corporation's solvency.
4. Conclude on the success of management's initiative and explain the reason for your conclusion.
5. Recommend two actions based on your analysis and conclusion.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
Accounting problems, Draw a detailed timeline incorporating the dividends, calculate the exact Payback Period b) the discounted Payback Period. the IRR, the NPV, the Profitability Index.
Term Structure of Interest Rates
Write a report on Internal Controls
Prepare the bank reconciliation for company.
Create a cost-benefit analysis to evaluate the project
Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR
Distinguish between liquidity and profitability.
Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.
Simple Interest, Compound interest, discount rate, force of interest, AV, PV
CAPM and Venture Capital
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd