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!
Assignment: Ratio Analysis
Solve the problem below, calculate the ratios, interpret the results against the industry average, and fill in the table on the worksheet. Then, provide an analysis of how those results can be used by the business to improve its performance. Turn in your completed work to the M1: Assignment 3 Dropbox by Wednesday, March 29, 2017.
Balance Sheet as of December 31, 2010
Gary and Company
Cash
$45
Accounts payables
Receivables
66
Notes payables
45
Inventory
159
Other current liabilities
21
Marketable securities
33
Total current liabilities
$111
Total current assets
$303
Net fixed assets
147
Long Term Liabilities
Total Assets
$450
Long-term debt
24
Total Liabilities
$135
Owners Equity
Common stock
$114
Retained earnings
201
Total stockholders' equity
315
Total liabilities and equity
Income Statement Year 2010
Net sales
$795
Cost of goods sold
660
Gross profit
135
Selling expenses
73.5
Depreciation
12
EBIT
49.5
Interest expense
4.5
EBT
Taxes (40%)
18
Net income
27
1. Calculate the following ratios AND interpret the result against the industry average:
Ratio
Your Answer
Industry Average
Your Interpretation (Good-Fair-Low-Poor)
Profit margin on sales
3%
Return on assets
9%
Receivable turnover
16X
Inventory turnover
10X
Fixed asset turnover
2X
Total asset turnover
3X
Current ratio
Quick ratio
1.5X
Times interest earned
7X
2. Analysis:
Give your interpretation of what the ratios calculations show and how the business can use this information to improve its performance. Justify all answers.
calculation of additional funds needed.the following is the balance sheet for 2003 for marbell inc.nbspmarbell
png airlines is positioning itself for global expansion. the chief executive officer of the company has asked its chief
finding the value of inventory destroyed in natural disaster.on july 24 of the current year the acme peach company
What would be the maximum amount of checkable deposits after deposit expansion, and what would be the money multiplier?
write a paragraph analyzing each of the profitability ratios for Jackson, Inc. given the following information from previous years and competitors - Net income should have a double underline.
A share holder has a stock portfolio. Every stock in the portfolio has following market values and betas. So determine the Shareholder expect from this portfolio .
you are hired as a consultant by starpucks. the company would like to experiment locally with a new marketing strategy
How do client assets under management and Tier 1 capital translate into market value? That is, are U.S. and U.K. banks relatively more valuable than their foreign competitors?
below are the financial ratios of kangaroo ltd for the years 2011-2012 and the industry average for the year 2012.
What is the highest cumulative amount that needs to be borrowed during this 12 month period and use the roundup function to round this amount to the highest thousand dollar amount
economic order quantityspeedy manufacturers wishes to determine the economic order quantity eoq for a critical and
Marketability Commercial banks use some funds to purchase securities and other funds to make loans. - Why are the securities more marketable than loans in the secondary market?
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