hello guys, i need help with the below assignment

it is a finance assignment exam

MGMT 4650 Financial/Ratio Analysis Quiz Name________________________________________ Major____________________ Write down or mark your answers clearly. Justify your answers by providing supporting information (for instance, calculated ratios) if the question requires it. Use the reverse sides of pages for any other calculations you need to perform. Make sure that you have filled in all the identification information asked for above Note: there are a total of 11 questions to answer.GOOD LUCK! 1. Fill in the blanks and give reasons: (10 points) Company A Company B ROE 2% 8% Profit Margin % 7% 4% TAT 1.7 3.0 ROA 11% 8.7% Generic Strategy How different are the two firms' financials? How are they related to their strategies? _________________________________________________________________________________ ________________ _________________________________________________________________________________ ________________ __________ Use this information to answer the following questions 2 to and 6. 1 New Tech Company 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 50 100 40 10 50 100 35 15 50 100 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 New Tech Company ? EXPLAIN with the appropriate ratios/measures. (10) A. positive sale growth B. high debt C. increasing profit margin D. all the above characterize New Tech Company 2 3. Which expense item shows the greatest growth in percentage terms at New Tech? EXPLAIN with numerical calculations. (5) 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 New Tech will REPORT a profit? EXPLAIN with numerical calculations. (5) A. B. C. D. 2010 2011 2012 2013 5. The change in ROA for New Tech over the period is due to A. PM B. TAT C. both D. neither. Explain using the appropriate ratio(s). (5) 6. The trend for New Tech's asset turnover is: EXPLAIN! (5) A. Increasing B. Decreasing 3 C. Staying the same D. Can't tell 7. The trend for New Tech's current ratio is: EXPLAIN! (5) A. B. C. D. Increasing Decreasing There is no trend Can't tell __________ The information below is excerpted from the financial statements of two companies. Use this information to answer questions 8-9 (in $ million) Company Company B A Net revenues 31296 107958 Net income 1288 3426 Total current assets 29564.5 18672.5 Total assets Total current liabilities 15370 12708.5 Total liabilities 32030 24671 Total stockholders' 5403.5 17823 equity Footnote: Approximately 98% of Company A's account receivables are from unpaid balances carried by customers using the store credit card. 8. Which company is less liquid (i.e., more risky in the short-term)? Justify using appropriate ratio(s). (10 points) 4 _________________________________________________________________________________ ________________ _________________________________________________________________________________ ________________ _________________________________________________________________________________ ________________ 9. Which company is more leveraged? Justify using appropriate ratio(s). (10 points) _________________________________________________________________________________ ________________ _________________________________________________________________________________ ________________ _________________________________________________________________________________ ________________ Use the information below to answer questions10-11 5 Table -1 % growth in revenues from 2008 to 2009 6 7 10. Calculate and show % change in revenues for Airline carriers (with primary SIC code 4512) for the year 2009 ONLY (from 2008 to 2009). Compare and benchmark the growth rate using the industry growth in Table-1 above. Which airline carrier is better in terms being able to increase their revenues in the year 2009? Which company is the worst? Interpret your analysis by using the information given in the \"Key Points-Current Environment\" table as well. (20 points) 8 11. For the year-end 2008 (from 2007 to 2008), which airline carrier (with primary SIC code 4512) was able to increase their profit per each $1 worth of revenues they have generated over that year? Name and create the type of the statement (s) you need to use for such analysis? (15 points) 9