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Can anyone help with this assignment about ratios and measures? Startup Co Income Statement Sales 2007 2008 2009 100 110 120 Cost of goods sold
Can anyone help with this assignment about ratios and measures?
Startup Co Income Statement Sales 2007 2008 2009 100 110 120 Cost of goods sold Depreciation General, sales & admin expenses 50 20 51 20 52 20 70 65 60 Taxes 10 10 10 -50 -36 -22 2007 40 2008 45 2009 40 60 100 55 100 60 100 40 10 50 40 10 50 35 15 50 100 100 100 Net Income Balance Sheet Current Assets Property, plant & equipment Total Assets Current Liabilities Long-Term Liabilities Equity Total Liabilities & Equity Industry Average Ratios 200 200 7 2008 9 CR (Current Ratio) DR (Debt Ratio) TAT PM Sales Growth Profit Growth 1.5 1.5 1 50% 2 50% 2.2 50% 2.5 4% 6% 3% 5% 2.50 % 5% 25% 20% 3% 2. Which of the following items do not characterize Startup Co? Explain with the appropriate ratios/measures. A. positive sale growth B. high debt C. increasing profit margin D. all the above characterize Startup Co 3. Which expense item shows the greatest growth in percentage terms at Startup Co? Explain with numerical calculations. A. B. C. D. Costs of goods sold Depreciation General, sales and admin. Taxes 4. Using the figures above, in what year would you anticipate Startup Co will REPORT a profit? Explain with numerical calculations. A. 2010 B. 2011 C. 2012 D. 2013 5. The change in ROA for Startup Co over the period is due to A. PM B. TAT C. both D. neither. Explain using the appropriate ratio(s). 6. The trend for Startup Co asset turnover is: Explain. A. B. C. D. Increasing Decreasing Staying the same Can't tell 7. The trend for Startup Co current ratio is: Explain. A. B. C. D. Increasing Decreasing There is no trend Can't tellStep by Step Solution
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