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please asset with both questions 8 and 9 would have the largest dollar amount of total assets? 8. [Ratio Calculations from Financial Statements] Ricardo Martinez
please asset with both questions 8 and 9
would have the largest dollar amount of total assets? 8. [Ratio Calculations from Financial Statements] Ricardo Martinez has prepared the following financial statement projections as part of his business plan for starting the Martinez Products Corporation. The venture is to manufacture and sell electronic components that make standard overhead projectors "smart." In essence, through voice commands, a projector can be turned on, off, and the brightness of the projection altered. This will allow the user to avoid audience annoyances associated with a bright projection light during periods when no overhead transparency is being used. Venture investors usually screen prospective venture opportunities in terms of projected profitability and financial performance. A. Use the following projected financial statements for Martinez Products to calculate financial ratios show- ing the venture's projected (a) gross profit margin, (b) net profit margin, (c) asset intensity, and (d) ROA. B. ratios calculated in Part A are found in the venture opportunity screening guide discussed in the chapter. Rate the potential attractiveness of the Martinez Products venture using the guidelines for the pricing/profitability factor category for the VOS Indicato. MARTINEZ PRODUCTS CORPORATION PROJECTED FOR YEAR 1 Sales Cost of goods sold Gross profit Operating expenses Depreciation Earnings before interest and taxes Interest Earnings before taxes Taxes (25%) Net income MARTINEZ PRODUCTS CORPORATION PROJECTED BALANCE SHEET FOR END OF YEAR 1 Cash Accounts receivable Inventories Total current assets Gross fixed assets Accurnulated depreciation Net fixed assets Total assets s 10,000 20,000 50.000 54.DD0 4.000 50.000 $100,000 Accounts payable Accrued liabilities dank loan Total current liabilities Common stock Retained earnings Total equity Total liabilities and equity $200,000 IDO.DOO 75,000 1,000 20.000 5.000 s 15.000 '0.ooo 10,wo 35,000 15.000 $100,000
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