Question: 1. Provide the equation for each ratio listed below. 2. What does each ratio listed tell about the company? 3. Compare the company ratios to

1. Provide the equation for each ratio listed below.

2. What does each ratio listed tell about the company?

3. Compare the company ratios to the standard ratios, and give an overall analysis of the company.

Gross Profit Margin Net Profit Margin Earnings per Share Return on Assets

Gross Profit Margin Net Profit Margin Earnings per Share Return on Assets Debt to assets ratio Current ratio Inventory Turnover Days in Inventory Average receivable turnover Average collection period Company Ratios 41.04% 12.21% .40 6.86% .44 .53 13.22 27.61 8.38 43.56 Standard Ratios 40.00% 15.20% .80 11.00% .50 1.50 15.00 24.33 15.00 24.33

Step by Step Solution

★★★★★

3.40 Rating (156 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

ANSWER 1 The equations for each ratio listed are as follows Gross Profit Margin Revenue Cost of Goods Sold Revenue Net Profit Margin Net Income Revenue Earnings per Share Net Income Number of Shares O... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...

The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-6. On December 12, Irene purchased the building where her store is located. She paid...

A researcher wanted to find out if there was difference between older movie goers and younger movie goers with respect to their estimates of a successful actors income. The researcher first...

The following table contains calculations of several key ratios for Indianola Pharmaceutical Company, a maker of proprietary and prescription drugs. The company is publicly held and is considered a...

Data for Barry Computer Co. and its industry averages follow. The firms debt is priced at par, so the market value of its debt equals its book value. Since dollars are in thousands, number of shares...

Randolph Company has $1,000,000 in assets and $1,000,000 in stockholders equity, with 40,000 shares outstanding the entire year. It has a return on assets ratio of 10%. In the past year, it had net...

During a recent period, the fast-food chain Wendy's International purchased many treasury shares. This caused the number of shares outstanding to fall from 124 million to 105 million. The following...

You have just been hired as a loan officer at Fairfield State Bank. Your supervisor has given you a file containing a request from Hedrick Company, a manufacturer of auto components, for a $1,000,000...

Comparative financial statement data for Bosch Corporation and Fielder Corporation, two competitors, appear below. All balance sheet data are as of December 31, 2014. Instructions (a) Comment on the...

Comparative statement data for Omaz Company and Wise Company, two competitors, are presented below. All balance sheet data are as of December 31, 2014. Instructions (a) Compute the net income and...

Explain how to account for an interest in a joint operation.

is interested in improving its control over labor costs. ment assembled the following data for September: Labor Activity Productive labor time.. Setup time.... Cleanup time. Down time. Actual Hours...

Martha has become the supervisor of a group of seven building inspectors working for a city government in a large metropolitan area. The group includes five men and two women. Martha was hired for...

IASB has issued International Financial Reporting Standards (IFRS) that are being adopted by nations all over the world. Please read the IASB chairmans speech at an event hosted by the Accounting...

Furniture World is required by law to collect and remit sales taxes to the state. If Furniture World has $78,000 of cash sales that are subject to a 6% sales tax, what is the journal entry to record...

1. Inspired by one too many late nights of Stardew Valley, you've decided to become a farmer! You grow plums ), and to make some extra money you make a handful of delicious things out of your plums:...

Consider the volume of the region shown below, which shows a hemisphere of radius 6mm and a slice of thehemisphere with width Dy=y.Write a Riemann sum for the volume, using the slice shown. Be sure...

Alex Oberstar, a cook in the Lagomarsino Company cafeteria, is furnished two meals each day during his eight-hour shift. Oberstars duties require him to have his meals on the companys premises....

In the case of a salaried nonexempt employee, how is the regular rate of pay determined?

Sheila Williams, a medical secretary, earns $2,575 monthly for a 35-hour week. For overtime work, she receives extra pay at the regular hourly rate up to 40 hours and time and one-half beyond 40...

Calculate the income yield, capital gain yield, and rate of total return in each of 2008 and 2009 for Potash Corporations shares and Mawer New Canada Fund units. Use the data in Tables 9.3 and 9.4.

The market value of Stephanies bonds has declined from $1053.25 to $1021.75 per bond during the past year. In the meantime she has received two semiannual interest payments of $35 per bond. Calculate...

A $100 investment purchased one year ago is now worth $110. It also earned $10 of income during the year. Determine the investments: a. Income yield. b. Capital gain yield. c. Rate of total return.