FIN 3200 Module 1 Homework Solution-2

Required: Compute the following: (For Requirements 1 to 4, enter your percentage answers rounded to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) 1. Gross margin percentage. 2. Net profit margin percentage. 3. Return on total assets. 4. Return on equity. 5. Was financial leverage positive or negative for the year? 1. Gross margin percentage % 2. Net profit margin percentage % 3. Return on total assets % 4. Return on equity % 5. Financial Leverage

The financial statements for Royale and Cavalier companies are summarized here: Cavalier Royale Company Company Balance Sheet $ 31,000 61,000 122,000 562,000 146,000 $ 51,000 22,000 37,000 172,000 52,000 Cash Accounts Receivable, Net Inventory Equipment, Net Other Assets $ 922,000 $ 334,000 $ 27,000 67,000 216,000 10,000 14,000 $ 334,000 Total Assets $ 132,000 202,000 486,000 56,000 Current Liabilities Notes Payable (long-term) Common Stock (par $20) Additional Paid-In Capital Retained Earnings 46,000 Total Liabilities and Stockholders' Equity $ 922,000 Income Statement $ 818,000 $ 298,000 156,000 101,000 Sales Revenue Cost of Goods Sold 486,000 246,000 Other Expenses $ 86,000 $ 41,000 Net Income Other Data $ 18.00 $ 15.00 Per share price at end of year Selected Data from Previous Year Accounts Receivable, Net Notes Payable (long-term) Equipment, Net Inventory Total Stockholders' Equity $ 53,000 202,000 562,000 101,000 588,000 $ 20,000 67,000 172,000 44,000 240,000 These two companies…

The 2024 income statement of Adrian Express reports sales of $20,310,000, cost of goods sold of $12,500,000, and net income of $1,900,000. Balance sheet information is provided in the following table. Assets Current assets: Cash Accounts receivable Inventory ADRIAN EXPRESS Balance Sheets December 31, 2024 and 2023 Long-term assets Total assets Liabilities and Stockholders' Equity Current liabilities Long-term Liabilities Common stock Retained earnings Total liabilities and stockholders' equity Industry averages for the following four risk ratios are as follows: Gross profit ratio Return on assets Profit margin Asset turnover Return on equity 45% 25% 15% 6.5 35% tines 2024 2023 $800,000 $910,000 1,725,000 1,175,000 2,175,000 1,625,000 5,000,000 4,390,000 $9,700,000 $8,100,000 $2,030,000 $1,820,000 2,490,000 2,560,000 2,025,000 1,975,000 3,155,000 1,745,000 $9,700,000 $8,100,000

5. Profitability ratios Profitability ratios help in the analysis of the combined impact of liquidity ratios, asset management ratios, and debt management ratios on the operating performance of a firm. Your boss has asked you to calculate the profitability ratios of Diusitech Inc. and make comments on its second-year performance as compared with its first-year performance. The following shows Diusitech Inc.'s income statement for the last two years. The company had assets of $4,700 million in the first year and $7,518 million in the second year. Common equity was equal to $2,500 million in the first year, and the company distributed 100% of its earnings out as dividends during the first and the second years. In addition, the firm did not issue new stock during either year. Diusitech Inc. Income Statement For the Year Ending on December 31 (Millions of dollars) Year 2 Year 1 2,540 2,000 1,610 1,495 127 80 1,737 803 80 723 181 542 Net Sales Operating costs except depreciation and…

Hello! look at the attached images and answer: (a) Calculate ratios for the year ended 31 December 2021 (showing your workings) for Primrose Plc, equivalent to those provided above.  i. Return on year-end capital employed ii. Net asset turnover iii. Gross profit margin iv. Net profit margin v. Current ratio vi. Closing inventory holding period vii. Trade receivables’ collection period viii. Trade payables’ payment period ix. Dividend yield x. Dividend cover (b) Analyse the financial performance and position of Primrose Plc for the year ended 31 December 2021 compared to 31 December 2020.  (c) Explain the uses and the general limitations of ratio analysis.    Thanks a lot!

Motorola Credit Corporation's annual report: Net revenue (sales) Net earnings Total assets Total liabilities Total stockholders' equity a. Find the total debt to total assets ratio. Note: Round your answer to the nearest hundredth percent. Total debt to total assets Return on equity b. Find the return on equity ratio. Note: Round your answer to the nearest hundredth percent. (dollars in millions) $ 297 163 2,175 1,880 295 Asset turnover c. Find the asset turnover ratio. Note: Round your answer to the nearest cent. Profit margin % % % d. Find the profit margin ratio on net sales. Note: Round your answer to the nearest hundredth percent.

[The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Current Year $ 27,970 80, 264 100,917 9,097 251,134 $ 469,382 Exercise 13-11 (Algo) Analyzing profitability LO P3 Interest expense Income tax expense Total costs and expenses Net income Earnings per share Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity For both the current year and one year ago, compute the following ratios: $ 116,876 90,891 163,500 98,115 $ 469,382 $ 372,220 189,161 10,373 7,933 Current Year 1 Year Ago The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses $ 610, 197 $ 31,400 58,349 77,104 8,412 229,375 $ 404,640 579,687 $ 30,510 $1.88 $ 70,436…

The following are financial ratios for the company. You are required to answer the following questions. Year 5 Year 6 Year 7 ROA 2.87% 2.60% 4.13% Profit Margin 3.2% 2.9% 3.1% Assets Turnover 0.90 0.88 0.99 Accounts receivable Turnover 6.2 11.5 118.4 Inventory Turnover 6.1 6.0 5.8 Fixed Assets Turnover 1.3 1.4 1.5 collection period 58.6 31.7 3.1 59.6 60.9 62.5 inventory period %change in sales 7.66% 9.68% Between year 5 and 6, the increase in cost of goods sold and the decrease in inventory turnover is an indication of what? Provide evidence to your answer.

Good day dear tutor, please provide all the following requirements, i deeply appreciate it, thank you so much!   For questions 114 to 117, math the ratios at the left with the definition at theright. 114. Price-earnings ratio.115. Days’ sales in receivables 116. Days’ sales in inventory 117. Times interest earned a) Ratio of pretax operating incometo annual interest expense.b) Market price of a share of stockdivided by earnings per share.c) A measure of age or adequacy ofinventory, each calculated by theratio of ending inventory balanceto average daily cost of sales forthe preceding period.d) A measure of the receivables’ agecalculated by the ratio of endingreceivable balance to averagedaily sales for the precedingperiod.

Problem 3 (Profitability Ratios) The following data are from the financial statements of Parada, Inc.:   December 31, 2019  Total Assets = 180,000 TotalEquity = 144,000 Total Preference Equity = 30,000 Preference Dividends Declares = 2,400  Profit = 20,000  Interest Expense = 5,750    January 1, 2019 Total Assets = 140,000 Total Equity = 112,000 Total Preference Equity = 30,000   Calculate the following ratios: 1. Return on total assets 2. Return on ordinary equity Please provide a solution. Please provide a solution.

Using Table 6–13, create a pro forma balance sheet using the percentage ofsales method. If net income next year is $50,000, answer the following:a. How much did the owners take out of the business?b. What is the profit margin for next year?

Solve and perform the different financial ratios using the financial statements of XYZ Company for the year 2021. 1.      Current Ratio 2.      Quick Ratio 3.      Receivables Turnover 4.      Inventory Turnover 5.      Debt Ratio   6.      Equity Ratio 7.      Times Interest Earned 8.      Gross Profit Margin 9.      Operating Profit Margin 10.   Net Profit Margin

uploaded pictures for problem 17-4B. I am trying to figure out the                                            7. Number of days'   sales in inventory 8. Ratio of Fixed Assets to long-term Liabilities 9. Ratio of Liabilities to Stockholders Equity

Compute the following financial data for this year: 1. Earnings per share. (Round your answer to 2 decimal places.) 2. Price-earnings ratio. (Round your intermediate calculations and final answer to 2 decimal places.) 3. Dividend payout ratio. (Round your intermediate calculations and final answer to 2 decimal places.) 4. Dividend yield ratio. (Round your intermediate calculations and final answer to 2 decimal places.) 5. Book value per share. (Round your answer to 2 decimal places.)

TOPIC: Financial Statement Analysis1. Calculate the debt ratio of a company that as an equity multiplier of 2.5  2. A company's sales last year were $615,000 and its net income was $45,800. It has $465,000 in assets financed only by common equity. Determine the profit margin needed to achieve a 14.5% ROE. Use 4 decimal places in your final answer. Express in percentage3. Net income for 2020 was P1,825,600. In 2021, it decreased by 53%. Still using the 2020 net income as the base year, by 2022, net income increased by 130%. Determine the net income for 2021 and 2022, respectively.   4. P240,000 will be deposited in a fund at the beginning of each six months for 5 yrs. Using 11% as the interest rate compounded semiannually, compute how much is in the fund at the end of 4 ½ years just after the last deposit. (use 2 decimal places for your final answer)   5. A company has $6,435,000 in common equity and 1,063,000 in outstanding shares. Shares sell at a price of $30.70 each. Calculate the…

9 - The income statement of a Business for the period 2019 is as follows:     31.12.2019 % Gross sales 45.200 TL 102.72 Discounts From Sales 1.200 TL 2.72 Net Sales 44,000 TL 100.00 Cost of sales 12.500 TL 28.41 Gross Profit on Sales 31,500 TL 71.59 This table was prepared according to which of the following analysis methods?    a) Technical analysis  B) Analysis with Vertical Percentage Method  NS) Ratio Analysis  D) Comparative Tables Analysis  TO) Trend Percentages Analysis

Calculate the following ratios for 2021. Express answers to two decimal places. 4.1.1 Gross margin 4.1.2 Inventory turnover 4.1.3 Acid test ratio 4.1.4 Debt to equity 4.1.5 Earnings per share 4.2 Are the collections from credit sales satisfactory? Motivate your answer by using the relevant ratio. 4.3 Would the shareholders of Harmony Limited be satisfied with the return on their investments? Motivate your answer with the use of a relevant ratio. 4.4 Suggest THREE (3) ways in which Harmony Limited can improve its gross margin ratio, without increasing the selling price of the inventories.

Perform a liquidity and profitability analysis on your company utilizing the ratios listed below. Quick Ratio, Receivable Turnover, Days sales uncollected, inventory turnover, Days inventory on hand, payable turnover, days payable, asset turnover, return on assets, and return on equity.   statement of operations 12 Months Ended Jul. 31, 2020 Jul. 31, 2019 Revenues:     Revenues  $ 1,497,826,000  $ 1,684,392,000 Costs and expenses:     Operating expense - personnel, vehicle, plant and other 493,055,000 468,868,000 Operating expense - equipment lease expense 33,017,000   Equipment lease expense, preadoption   33,073,000 Depreciation and amortization expense 80,481,000 78,846,000 General and administrative expense 45,752,000 59,994,000 Non-cash employee stock ownership plan compensation charge 2,871,000 5,693,000 Asset impairments 0 0 Loss on asset sales and disposals 7,924,000 10,968,000 Operating income 148,670,000 113,028,000 Interest expense…

Suppose that you are given the following data for Niles Company : Note: The data and calculations are based on a 365-day year. Cash and equivalents Fixed assets Sales Net income Current liabilities Current ratio DSO ROE The current ratio is equal to assets value of Return on equity (ROE) is to approximately $225,000 $650,000 $2,500,000 $112,500 $240,000 2.5 18.25 12.00% The days sales outstanding (DSO) ratio is equal to accounts receivable balance of Plugging in the relevant values for the current ratio and current liabilities, and then solving yields a current . Adding fixed assets to current assets yields a value of total assets of Recall the following identity: Recall that Total Assets = Total Liabilities and Equity. Plugging in the relevant values for ROE and net income yields a value of total common equity of Mathematically, total liabilities and equity is equal to ▼. Plugging in the relevant values for total liabilities and equity, current liabilities, and equity (calculated…

Use for financial statements for Yellow Hammer to answer problems 1-3 1. Assess Yellow Hammer's income statement by calculating the sales growth, EBITDA profitability (EBITDA/Sales) and coverage ratios using EBIT and EBITDA for each year. 2. Assess Yellow Hammer's balance sheet by calculating the leverage ratios using of Debt/Capitalization and Debt/EBITDA. 3. Using the table below and the ratios that you've calculated, insert the EBIT interest coverage, EBITDA interest coverage, Debt/EBITDA and Debt to Capitalization and then provide an assessment of Yellow Hammer's credit quality. Oper. income (bef. D&A)/revenues (%) Return on capital (%) EBIT interest coverage (x) EBITDA interest coverage (x) FFO/debt (%) Free oper. cash flow/debt (%) Disc. cash flow/debt (%) Debt/EBITDA (x) Debt/debt plus equity (%) AA 32.1 19.7 13.1 17.9 72.3 43.9 18.3 1.0 21.0 A 19.1 16.8 8.1 11.6 53.0 28.4 10.6 1.4 32.1 BBB 17.1 12.0 4.5 7.1 34.5 15.5 6.9 2.1 42.2 BB 20.4 9.5 3.0 4.9 24.0 9.0 3.9 2.9 47.4 B 15.3…

Use the financial ratios of company A and company B to answer the questions below.                                                                 Company A                     Company B                                                             Yr t+1   Year t                 Yr t+1   Year t Current ratio                                        0.55       0.59                   0.56       0.55 Accounts receivable turnover              6.22       6.25                   5.06       4.87 Debt to total assets                               40.5%    40%                   67.8%     65.9% Times interest earned                           8.80       30.6                   5.97       6.33 Free cash flows (in millions)           ($3,819)   $3,173                 $168      $550 Return on stockholders’equity             7.7%      7.7%                  26.6%      23.3% Return on assets                                   4.3%      4.3%                  8.9%       7.9% Profit margin…

Question 8: You are provided with the Income Statement and the Balance Sheet of HTS software, Inc. for 2011. Required:  (a) Calculate the ratios stated in the table below for HTS Software, Inc. for 2011  (b) Analyze the current financial position for the company from a time series and cross section    viewpoint.  (c) Break your analysis into an evaluation of the firm’s liquidity, activity, debt, profitability and market ratios. Historical and Industry Average Ratios HTS Software ,   Inc. Ratio 2010 2011 Industry2011 Current Ratio 2.6 — 2.7 Quick Ratio 1.8 — 1.75 Inventory Turnover 4.5 — 4.7 Average Collection Period 40days — 42 days Total Asset Turnover 1.2 — 1 Debt Ratio 20% — 21% Times Interest Earned 9 — 8.9 Gross Profit Margin 43% — 44% Operating Profit Margin 30% — 32% Net Profit Margin 20% — 21% Return on total assets 12% — 13% Return on Equity…

Income Statement: Hard #12   Prepare a corrected multi-step incomestatement for the Company