RATIO CALCULATIONS Assune the following relationships for hhe Brauer Cop Sales total assets Retum on assets ROA) Return on eguity (ROE) Calculate Brauer s protit margin and debt ratio.
Q: Which of the following is NOT one of the ratios in Profitability group? Select one: a. Quick ratio…
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A: Solution: Profit earnings performance of the company's assets means that how much of the company's…
Q: Return on Assets, or ROA, can be expressed as the product of two ratios. Which two?
A: Return on Assets: It refers to the ratio that measures the profitability of the company with respect…
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A: Du-point Analysis is the method of measuring the performance of the company. It measures the return…
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Q: Return on equity b. Total assets turnover c. Return on assets
A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts…
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A: The below ratios are computed using the 2016 financial statements of Walmart Company.
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A: Profitability ratios can be defined as those ratios which help a firm in evaluating the profit-…
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A: Hey, since there are multiple questions posted, we will answer the first question. If you want any…
Q: Describe ratios that are used in profitability analysis.
A: Profitability ratios are a class of financial metrics that are used to assess a business's ability…
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A: Ratio analysis is a method to know the liquidity, profitability and operational efficiency of the…
Q: Profitability ratios include all of the following EXCEPT a.current ratio. b.asset turnover. c.return…
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Q: The current ratio is: Multiple Choice Cash, short-term investments, and accounts receivable divided…
A: Solution: The Current ratio is a ratio which is considered as a liquidity ratio. It represents…
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Q: How do you calculate all the ratios?
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Q: pute the following requirer a. Gross profit rate b. Operating profit margi C. Net profit margin rate…
A: Thank you for posting questions. Since you have posted multiple questions, as per the guideline I am…
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A: Solution: When a balance sheet amount is related to an income statement amount in comparing a ratio…
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A: Liquidity of firm is meausred by ablity to satisfy its short term obligations as they come due.
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A: Hi student Since there are multiple subparts, we will answer only first three subparts. Gross…
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A: Solution:- 1)Gross profit margin =Gross profit / Net sales x 100
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A: The question is related to Capital Budgeting.
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A: The correct option is (A) Times Interest Earned Explanation: This ratio is the measure of a…
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A: Profitability ratio determines the profitability of the entity over a period of time with regard to…
Q: Which of the following is included in the calculation of the quick (acid-test) ratio?a. Inventory…
A: While Calculating the quick ratio, only quick assets are taken into consideration
Q: Identify and calculate the common ratios used to assess profitability.
A: Profitability ratios: Profitability ratios are those ratios that helps a company to access the…
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- Using financial functions (RATE, PMT, FV, NPER, PV) complete the shaded cells to analyze 5 financial options for MIS Enterprises. (HINT: Make sure your interest rate and number of payments are set to the correct terms) See attached for shaded cells (1) Calculate PMT (2) Calculate FV (3) Calculate PV (4) Calculate RATE (5) Calculate NPERSub : Finance Pls answer ASAP. I ll upvote dont CHATGPT.Q4. Interest expense should be calculated based on interest rates and debt balances and by using a trend in interest expense or some other method. Choices: True or False
- Find out the missing value assets in an accounting equation if liabilities is OMR 320000 and capital is OMR 119000 Select one : O a . OMR 439000 assets O b . OMR 201000 assets O c . OMR 349000 assets O d . OMR 102000 assets Clear my choiceGuys could you please help me: I'm attaching AT&T's Balance Sheet and Income Statement for the analysis.I'd really appreciate help with the following: Perform a vertical financial analysis incorporatingi. Debt ratioii. Debt to equity ratioiii. Return on assetsiv. Return on equityv. Current ratiovi. Quick ratiovii. Inventory turnoverviii. Days in inventoryix. Accounts receivable turnoverx. Accounts receivable cycle in daysxi. Accounts payable turnoverxii. Accounts payable cycle in daysxiii. Earnings per share (EPS)xiv. Price to earnings ratio (P/E)xv. Cash conversion cycle (CCC), andxvi. Working capitalxvii. Explain Dupont identity, apply it to your selected company, interpret thecomponents in Dupont identity.6. Financial Planning models use a proforma method (aim topredict financial data based upon collected historical data).Y/N
- H1. Question 4. Calculate the Current assets from the following: Current liabilities $35978, Current ratio 3. a $11992.70 b $11900 c $107934Account Titles Debit CreditCash $ 7Accounts Receivable 3Supplies 3Equipment 9Accumulated Depreciation $ 2Software 6Accumulated Amortization 2Accounts Payable 4Notes Payable (short-term) 0Salaries and Wages Payable 0Interest Payable 0Income Taxes Payable 0Deferred Revenue 0Common Stock 15Retained Earnings 5Service Revenue 0Depreciation Expense 0Amortization Expense 0Salaries and Wages Expense 0Supplies Expense 0Interest Expense 0Income Tax Expense 0Totals $ 28 $ 28Transactions during 2018 (summarized in thousands of dollars) follow:Borrowed $25 cash on July 1, 2018, signing a six-month note payable.Purchased equipment for $28 cash on July 2, 2018.Issued additional shares of common stock for $5 on July 3.Purchased software on July 4, $3 cash.Purchased supplies on July 5 on account for future use, $7.Recorded revenues on December 6 of $58, including $8 on credit and $50 received in…Match the following terms or phrases in (a–g) with the explanations in 1–8. Terms or phrases may be used more than once. Question 11 options: Current assets/Current liabilities Probable likelihood and estimable liability Measures the “instant” debt-paying ability of a company Current assets – Current liabilities (Cash + Temporary investments + Accounts receivable)/Current liabilities Cash + Temporary investments + Accounts receivable Probable likelihood of a liability but cannot be estimated Remote contingent liability Reasonably possible likelihood of a liability 1. Current ratio 2. Working capital 3. Quick assets 4. Quick ratio 5. Record an accrual and disclose in the notes to the financial statements 6. Disclose only in notes to financial statements 7. No disclosure needed in notes to financial statements
- Comprehensive/Spreadsheet Problem 16-15 FORECASTING FINANCIAL STATEMENTS Use a spreadsheet model to forecast the financial statements in Problems 16-13 and 16-14. 16-13 ADDITIONAL FUNDS NEEDED Morrissey Technologies Inc.'s 2014 financial statements arc shown here. Morrissey Technologies Inc.: Balance Sheet as of December 31, 2014 Morrissey Technologies Inc.: Income Statement for December 31, 2014 Sales 3.600.000 Operating costs including depreciation 3,279,720 E81T 320.280 Interest 20.280 EST 300.000 Taxes (40%} 120,000 Net Income 180.000 Per Share Data: Common stock price 45.00 Earnings per share (EPS) 1.80 Dividends per share (DPS) 1.08 Suppose that in 2015, sales increase by 10% over 2014 sales. 1hc firm currently has 100,000 shares outstanding. It expects to maintain its 2014 dividend payout ratio and believes that its assets should grow at the same rate as sales. The firm has no excess capacity. However, the firm would Like to reduce its Operating costs/Sales ratio to 87.5% and increase its total liabilities-to-assets ratio to 30%. (It believes its liabilities to-assets ratio currently is too low relative to the industry average.) The firm will raise JOO/o of the 2015 forecasted interest bearing debt as notes payable, and it will issue long-term bonds for the remainder. the firm forecasts that its before-tax cost of debt (which includes both short-term and long-term debt) is 12.5%. Assume that any common stock issuances or repurchases can be made at the firm's current stock price of S45. a. Construct the forecasted financial statements assuming that these changes are made. What are the firm's forecasted notes payable and long-term debt balances? What is the forecasted addition to retained earnings? b. If the profit margin remains at S'/o and the dividend payout ratio remains at 60%, at what growth rate in sales will the additional financing requirements be exactly zero? In other words, what is the firm's sustainable growth rate? (Hint: Set AFN equal to zero and solve for g.) 16-14 EXCESS CAPACITY Krogh Lumber's 2014 financial statements are shown here. Krogh Lumber: Balance Sheet as of December 31, 2014 (Thousands of Dollars) Krogh Lumber: Income Statement for December 31, 2014 (Thousands of Dollars) Sales 36,000 Operating costs including depredation 30,783 Earnings before interest and taxes 5,217 Interest 1,017 Earnings before taxes 4,200 Taxes (40%) 1680 Net income 2.520 Dividends (60%} 1,512 Addition to retained earnings 1,008 a. Assume that the company was operating at full capacity in 2014 with regard to all items except fixed assets; fixed assets in 2014 were being utilized to only 75% of capacity. By what percentage could 2015 sales increase over 2014 sales without the need for an increase in fixed assets? b. Now suppose 2015 sales increase by 25% over 2014 sales. Assume that Krogh cannot sell any fixed assets. AU assets other than fixed assets will grow at the same rate as sales; however, after reviewing industry averages, the firm would like to reduce its operating costs/sales ratio to 82% and increase its total liabilities-to-assets ratio to 42%. The firm will maintain its 60% dividend payout ratio, and it currently has 1 million shares outstanding. The firm plans to raise 35% of its 2015 forecasted interest-bearing debt as notes payable, and it will issue bonds for tile remainder. The firm forecasts that its before-tax cost of debt (which includes both short-term and long-term debt) is 11%. Any stock issuances or repurchases will be made at the firm's current stock price of 40. Develop Krogh's projected financial statements like those shown in Table 16.2 What are the balances of notes payable, bonds, common stock, and retained earnings?CALCULATING 3MS COST OF CAPITAL Use online resources to work on this chapters questions. Please note that website information changes over time, and these changes may limit your ability to answer some of these questions. In this chapter, we described how to estimate a companys WACC, which is the weighted average of its costs of debt, preferred stock/ and common equity. Most of the data we need to do this can be found from various data sources on the Internet. Here we walk through the steps used to calculate Minnesota Mining Manufacturings () WACC DISCUSSION QUESTIONS 1. As a first step, we need to estimate what percentage of MMMs capital comes from debt, preferred stock, and common equity This information can be found on the firms latest annual balance sheet. (As of year end 2017, had no preferred stock.) Total debt includes all interest-bearing debt and is the sum of short-term debt and long-term debt. a. Recall that the weights used in the WACC are based on the companys target capital structure. If we assume that the company wants to maintain the same mix of capital that it currently has on its balance sheet, what weights should you use to estimate the WACC for ? b. Find MMMs market capitalization, which is the market value of its common equity. Using the sum of its short-term debt and long-term debt from the balance sheet (we assume that the market value of its debt equals its book value) and its market capitalization, recalculate the firms debt and common equity weights to be used in the WACC equation. These weights are approximations of market-value weights. Be sure not to include accruals in the debt calculation.1. For Total current assets (on the Balance Sheet), use an Excel function to calculate the value. 2. For Total fixed assets (on the Balance Sheet), use operation signs to calculate the value. 3. As the CFA for Filler Construction, you notice the given Balance Sheet is suspiciously missing accounts that have an opposite normal balance of otheraccounts in their same category. a. What are these types of accounts called? b. add the following accounts where they should be listed: Allowance forDoubtful Accounts of $50, Accumulated Depreciation of $3450, and Treasury Stock of $450. Note: ensure these values are properly visually denoted ashaving the opposite normal balance. 4. Now you see that it is mising required formatting for a U.S. public company's external financial statement! Add in the required underlines where neededand change the number formatting to meet requirement.5. What is a first "check" to determine if this Balance Sheet is balanced? 6. What are two financial ratios that can…