Accounting
Anthropology
Archaeology
Art History
Banking
Biology & Life Science
Business
Business Communication
Business Development
Business Ethics
Business Law
Chemistry
Communication
Computer Science
Counseling
Criminal Law
Curriculum & Instruction
Design
Earth Science
Economic
Education
Engineering
Finance
History & Theory
Humanities
Human Resource
International Business
Investments & Securities
Journalism
Law
Management
Marketing
Medicine
Medicine & Health Science
Nursing
Philosophy
Physic
Psychology
Real Estate
Science
Social Science
Sociology
Special Education
Speech
Visual Arts
Question
using the income statement and balance sheet constructed in (1) and (2), compute the following ratios. compare the results with the industry averages. what strengths and weaknesses are apparent?
ratio industry average
current ratio 2:1
acid test (quick ratio) 1:1
inventory turnover
a. annual sales 2.5
b. cost of goods sold 1.2
receivables turnover
a. annual credit sales 5.0x
b. annual sales 6.0x
days sales outstanding 75 days
operating profit margin 26%
net profit margin 19%
return on assets 10%
return on equity 15%
debt/equity 33%
debt ratio (debt/total assets) 25%
timesinterestearned 7.1x
additional information:
last year's inventory $40,000
credit sales $90,000
Answer
This answer is hidden. It contains 2160 characters.
Related questions
Q:
if the financial markets were not efficient, a. all investors would profit b. prices indicate the proper valuation of securities c. prices would adjust rapidly d. an investor may consistently outperform the market
Q:
which of the following currently reduces taxes? 1> contributions to an ira 2> contributions to a roth account 3> purchases of life insurance 4> contributions to a 401(k) plan a. 1 and 2 b. 1 and 3 c. 1 and 4 d. 2 and 4
Q:
a 401(k) plan is a a. taxdeferred retirement plan b. savings plan for the retired c. plan to increase current tax-exempt income d. dividend or interest enhancement plan
Q:
examples of tax shelters for individuals include 1> interest on municipal bonds 2> realized short-term capital gains 3> keogh accounts a. 1 and 2 b. 1 and 3 c. 2 and 3 d. all of the above
Q:
the process of financial planning requires the individual to 1> establish financial goals 2> identify and quantify the value of his or her assets 3> hire professional financial advisors a. 1 and 2 b. 1 and 3 c. 2 and 3 d. all of the above
Q:
investing in stocks purchased by insiders may generate superior investment results and that is inconsistent with the strong form of the efficient market hypothesis.
Q:
one anomaly to the efficient market hypothesis is that investments in debt of large firms will earn higher returns than investments in their stock.
Q:
the amount of an outstanding mortgage appears on the individual's balance sheet.
Q:
a state lotto awarded a prize of $560,000 a year for the next 20 years starting today. if the state sold $21,900,000 in lotto tickets, what proportion of the sales will the state distribute if it earns 8% annually on invested funds?
Q:
your brother, who is prone to bearing substantial risk, suggests that you buy a security for $10,000 that promises to pay you $100,000 at the end of 15 years. what is the implied annual return or yield on this investment?
Q:
you are hurt in a car accident and your lawyer wins a $100,000 settlement to be distributed as follows: $20,000 immediate payment $5,000 a year for ten years $30,000 after ten years. if the lawyer's fee is $10,000, what is the value of this settlement if the interest rate is 6 percent?
Q:
air national's capacity is 120 passengers per flight. it currently carries 74 passengers per flight. growth in passengers is expected to be 6 percent annually. new plans will have to be ordered when the company is carrying 90 percent of capacity. how long will it be before the firm must order new planes?
Q:
the future value of an annuity will be larger if 1> the annuity is an ordinary annuity 2> the annuity is an annuity due 3> the payments are made at the beginning of the year 4> the payments are made at the end of the year a. 1 and 3 b. 1 and 4 c. 2 and 3 d. 2 and 4
Q:
time value concepts may be used to determine 1> the annual growth rate in dividends 2> the amount in an ira account after ten years 3> the tax owed on a capital gain a. 1 and 2 b. 1 and 3 c. 2 and 3 d. only 2
Q:
the future value of an annuity is 1> larger the higher the rate of interest 2> smaller the higher the rate of interest 3> larger the greater the number of years 4> smaller the greater the number of years a. 1 and 3 b. 1 and 4 c. 2 and 3 d. 2 and 4
Q:
an annuity is a series of a. rising annual payments b. random payments c. equal payments d. unequal payments
Q:
the present value of an annuity due is not affected by the frequency of compounding.
Q:
the future value of an ordinary annuity will exceed the future value of an annuity due.
Q:
the present value of an annuity increases as the number of years increases.
Q:
the future value of an annuity of $100 at 6 percent for ten years exceeds $1,000.
Q:
if the first payment made by an annuity is today, that is an ordinary annuity and not an annuity due.
Q:
if interest rates are 0 percent, an annuity of $100 for ten years is the same as $1,000 today.
Q:
if a bank pays 2 percent compounded daily, the true rate of interest is greater than 2 percent.
Q:
an investor sells 100 shares short at $43. the sale requires a margin deposit equal to 60 percent of the proceeds of the sale. the company paid a cash dividend of $2 per share. if the investor closed the position at $36, what was the percentage earned or lost on the investment?
Q:
concerning a new issue of stock, a lock-up refers to a. a guaranteed profit on the initial purchase b. a guaranteed profit to the underwriter c. the requirement that shares purchased by insiders prior to an initial public offering must retain those shares for a specified period d. initial buyers of the stock in the ipo must hold the shares for a specified period of time
Q:
the margin requirement is set by the a. federal reserve b. sec c. fdic d. sipc
Q:
inside information a. is obtained from inside brokerage firms b. is reported in a firm's financial statements c. must be disclosed to the sec d. may not be legally used to obtain security profits
Q:
securities regulations protect investors by a. requiring disclosures of information by firms b. stopping investors from buying overpriced stock c. reducing competition among brokers d. establishing commission schedules
Q:
daily securities transactions that are reported in the financial media generally include 1> the volume of transactions 2> the high and low prices for the day 3> the net change in price from the previous day a. 1 and 2 b. 1 and 3 c. 2 and 3 d. all of the above
Q:
a market maker 1> sells stock at the ask price 2> buys stock at the ask price 3> sells stock at the bid price 4> buys stock at the bid price a. 1 and 2 b. 1 and 4 c. 2 and 3 d. 3 and 4