Corporate Finance: A Focused Approach (mindtap Course List)
7th Edition
ISBN: 9781337909747
Author: Michael C. Ehrhardt, Eugene F. Brigham
Publisher: South-Western College Pub
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Chapter 3, Problem 14P
Summary Introduction
To determine: The company J’s
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The Jimenez Corporation’s forecasted 2020 financial statements follow, along with some industry average ratios. Calculate Jimenez’s 2020 forecasted ratios, compare them with the industry average data, and comment briefly on Jimenez’s projected strengths and weaknesses.Jimenez Corporation:
Forecasted Balance Sheet as of December 31, 2020
Assets
Cash
72,000
Accounts receivable
439,000
Inventories
894,000
Total current assets
1,405,000
Fixed assets
431,000
Total assets
1,836,000
Liabilities and Equity
Accounts payable
332000
Notes payable
100,000
Accruals
170,000
Total current liabilities
602,000
Long-term debt
404,290
Common stock
575,000
Retained earnings
254,710
Total liabilities and equity
1,836,000
Jimenez Corporation: Forecasted Income Statement for 2020
Sales
4,290,000
Cost of goods sold
3,580,000
Selling, general, and admin expenses
525,456
Earnings before taxes (EBT)
184,544
Interest expense
40,000
Earnings…
Toby’s forecasted 2021 financial statements follow, along with some industry average ratios. Calculate Toby’s 2021 forecasted ratios and fill in the above table. Calculate the EPS and DPS. The company has a 40% payout ratio.
Calculate the following ratios for 2020 for Holiday Gifts Galore, Inc.:
Industry avergage
Average Collection Period: 35 days
Debt ratio: 60%
Return on Equity: 10.5%
Current Ratio: 1.3
Inventory Turnover: 8.1
TImes interest earned: 2.5
Net Profit Margin: 3.78%
Return on total assets: 4.36%
Based on the ratios you have calculated above, does Holiday Gifts Galore, Inc. appear
to be…
Chapter 3 Solutions
Corporate Finance: A Focused Approach (mindtap Course List)
Ch. 3 - Prob. 1QCh. 3 - Prob. 2QCh. 3 - Over the past year, M. D. Ryngaert Co. has...Ch. 3 - Prob. 4QCh. 3 - Prob. 5QCh. 3 - Prob. 6QCh. 3 - Prob. 1PCh. 3 - Prob. 2PCh. 3 - Prob. 3PCh. 3 - Prob. 4P
Ch. 3 - Prob. 5PCh. 3 - Prob. 6PCh. 3 - Ace Industries has current assets equal to 3...Ch. 3 - Prob. 8PCh. 3 - Prob. 9PCh. 3 - Prob. 10PCh. 3 - Complete the balance sheet and sales information...Ch. 3 - The Kretovich Company had a quick ratio of 1.4, a...Ch. 3 - Prob. 13PCh. 3 - Prob. 14PCh. 3 - Prob. 1MCCh. 3 - Prob. 2MCCh. 3 - Prob. 3MCCh. 3 - Prob. 4MCCh. 3 - Prob. 5MCCh. 3 - Prob. 6MCCh. 3 - Prob. 7MCCh. 3 - Prob. 8MCCh. 3 - Prob. 9MCCh. 3 - Prob. 10MC
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- Using the fiscal year end 2020 annual report for General Mills, Inc. and the figures from the 2020 annual report as noted below, calculate the financial ratios for 2020 and 2019 indicated using the EXCEL template provided:1. The average collection period 2.Days sales in inventory 3. debt to equity ratio 4. Times interest earned 5. Operating cash flow to Capital expenditures ratio 6. Earnings per share 7. Price earnings ratio 8. Dividend yield 9. Dividend payout ratio 10. Total assets 2020 = $30,806.7Total stockholders’ equity 2020 = $8,349.5Total current liabilities 2020 = $7,491.5Accounts receivable 2020 = $1,615.1Inventory 2020 = $1,426.3Year-end closing stock price May 2020 = $58.80Year-end closing stock price May 2019 = $53.56arrow_forwardPlease use the attached images as well... Compute the following: For fiscal 2019 and 2020: Current Ratio, Quick Ratio, Long Term Debt Ratio For fiscal 2019 and 2020: Gross Profit Margin, Net Profit Margin, EBITDA For fiscal 2019 and 2020: Return on Assets, Return on Equity, Return on Sales For fiscal 2020: Free Cash Flow to Equity Market Capitalization, Market to Book Value and the Price-Earnings Ratio as of year-end 2020 Stock Prices in 2018 = $68.98 2019 = $84.15 2020 = $107.82arrow_forwardToby’s forecasted 2021 financial statements follow, along with some industry average ratios. Calculate Toby’s 2021 forecasted ratios and fill in the above table. Calculate the EPS and DPS. The company has a 40% payout ratio. Please provide the solutions for the EPS, DPS, Days Sales Outstanding, Fixed Asset Turnover, Total Asset Turnover, Return on Assets, Return on Equity, Total Debt Ratio, Profit Margin on Sales, P/E Ratio.arrow_forward
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