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finish the calculations of the ratio, i did the first page Learning Module #13 Learning Objective: Financial Statement Analysis Hermi's Bumbles, Inc. Hermi's Bumbles is
finish the calculations of the ratio, i did the first page
Learning Module #13 Learning Objective: Financial Statement Analysis Hermi's Bumbles, Inc. Hermi's Bumbles is a company that has been in business for three years. The company is a Wholesaler of Bumbles. Bumbles are bulbs which grow into beautiful, sweet smelling plant-trees. They are a cross between a hyacinth and a buckeye. They are refrigerated and must be planted within one year of when they are harvested unlerime buys yhe bumbles from a grower when they Whione month old. Hermi has one location in Columbus, Ohio. It has three refrigerated trucks which deliver the Bumbles throughout Ohio. The financial statements on the previous page summarize Hermi's operations for its first three years. Hermi began operations with individuals investing $120,000 for 12,000 shares of common stock and a small business loan of S200,000 from the bank. The loan carries interest at 12%. Hermi must pay the interest plus $10,000 on the principal on January 1 of each year. Hermi sells using terms of 2/10 n/30. The latest sale of stock between individuals was yesterday at $85.00 per share. There are more shares available from the other investors for this amount. The tax rate is 30%. Analyzing Hermi's Current Ratio 382770 248,000 Which tells us? 1.54 The Quick or "Acid Test" ratio 382770-200000 248000 6.74 - Calculate the Accounts Receivable Turn for last two years 1000GO 6000s +11000G 2 And the average collection period for the two years 12.94 365 12.94 = 28.21 days Calculate the Inventory Turn 687500 16.0+ 2656 2 3.82 times - Calculate the Average Days Sales In Inventory 365 3.82 95.55 days Calculate Book Value Per Share Return on Assets ROA Which tells us? Return on Equity ROE Which tells us? Leverage What causes the difference between the ROA and the ROE?? Debt Ratio (Financial Leverage Ratio) Debt to Equity Learning Module #13 Learning Objective: Financial Statement Analysis Hermi's Bumbles, Inc. Hermi's Bumbles is a company that has been in business for three years. The company is a Wholesaler of Bumbles. Bumbles are bulbs which grow into beautiful, sweet smelling plant-trees. They are a cross between a hyacinth and a buckeye. They are refrigerated and must be planted within one year of when they are harvested unlerime buys yhe bumbles from a grower when they Whione month old. Hermi has one location in Columbus, Ohio. It has three refrigerated trucks which deliver the Bumbles throughout Ohio. The financial statements on the previous page summarize Hermi's operations for its first three years. Hermi began operations with individuals investing $120,000 for 12,000 shares of common stock and a small business loan of S200,000 from the bank. The loan carries interest at 12%. Hermi must pay the interest plus $10,000 on the principal on January 1 of each year. Hermi sells using terms of 2/10 n/30. The latest sale of stock between individuals was yesterday at $85.00 per share. There are more shares available from the other investors for this amount. The tax rate is 30%. Analyzing Hermi's Current Ratio 382770 248,000 Which tells us? 1.54 The Quick or "Acid Test" ratio 382770-200000 248000 6.74 - Calculate the Accounts Receivable Turn for last two years 1000GO 6000s +11000G 2 And the average collection period for the two years 12.94 365 12.94 = 28.21 days Calculate the Inventory Turn 687500 16.0+ 2656 2 3.82 times - Calculate the Average Days Sales In Inventory 365 3.82 95.55 days Calculate Book Value Per Share Return on Assets ROA Which tells us? Return on Equity ROE Which tells us? Leverage What causes the difference between the ROA and the ROE?? Debt Ratio (Financial Leverage Ratio) Debt to Equity Step by Step Solution
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