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please do this fast because one of export give me wrong ans Case 2- Wizard Industries For the attached case study, calculate and describe what
please do this fast because one of export give me wrong ans
Case 2- Wizard Industries For the attached case study, calculate and describe what the ratios tell how the business operates. profit margin return on assets (investment) return on equity receivables turnover average collection period inventory turnover current ratio total asset turnover quick ratio debt to total assets times interest earned Which ratio(s) is most important and why? What is leveraging? Is there such thing as too much leveraging? Do companies need to leverage. Would you grant credit to the sales team?(Your answer must provide reasoning from KYC, KYT, and ratios. ). If you grant additional credit, what business product and why? If you have declined the sales team additional credit, why? What options would you offer them? You are the manager of a credit department. The sales team has presented a large order from a new purchaser, Wizard Industries. For approximately 12 years. Wizard has been installing security and water sprinkler systems in office buildings The salespeople have been well trained, as they have also presented you with the followin financial statements and industry ratios (from your files). In their report they note that sales have increased in the last two years due to Wizard's more aggressive selling approach The sales team is eager for you to grant credit to Wizard Industries. Of course, you must do a complete analysis noting any ratios that are cause for concern or require a further explanation What is your recommendation? Do you grant credit? WIZARD INDUSTRIES Income Statements Year Ended 20XX 20XW 20XV Sales (all on credit) $1,605,100 $1.841,300 $ 1.542.700 Cost of goods sold 1.258.900 1.397.400 1.174.800 Gross prodit 346,200 443.900 367.900 Selling and administrative expense 265,650 256.850 294,200 Amortization 14.000 14,400 16,000 Operating pro 66.550 172.650 57.700 Interest expense 65.100 50.550 50.100 Earnings before taxes 1.450 122,100 7.600 Taxes 350 27.100 2,200 Earnings available to common shareholders $ 1.100 $ 95,000 5.400 Dividends declared $ 70,000 $ 65,000 $ 60,000 WEARD INDUSTRIES Set Dec 31 20xX ZOW 20V An S 14.900 $24.700 S 11.300 7.000 7000 7.000 410.800 161.100 297.300 Cash Marbetade securities Accounts receivable Inventory Prepaid expenses Total current sets Net plant and copment 2:56.600 330.000 289.900 5.500 5200 100 6940.500 724.300 200 362.000 172.900 184,300 Goodwill 25400 30100 Total 2X.200 5925.000 300 5825100 Liabilities and Shareholders' Equity $145.900 Accounts payable $196,700 $209,700 254,000 Bank loan 202.000 169.000 3,700 23.700 14.400 403.600 422.400 393.100 225,800 181.600 141.000 629.400 604,000 534,100 Accrued expenses Total current liabilities Long-term debe Total liabilities Common stock Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 14.000 14,000 14.000 238 500 307 400 278,000 2$2.500 321,400 292.000 $881.900 $925.400 $826.100 Ratio Calculations No C subn Ratio Analysis Miss Point Leveraging Miss Point o po Credit Decision Resp show com of unde to thi probl Grammar, Usage, Som and Mecahnics spelli PI ar Case 2- Wizard Industries For the attached case study, calculate and describe what the ratios tell how the business operates. profit margin return on assets (investment) return on equity receivables turnover average collection period inventory turnover current ratio total asset turnover quick ratio debt to total assets times interest earned Which ratio(s) is most important and why? What is leveraging? Is there such thing as too much leveraging? Do companies need to leverage. Would you grant credit to the sales team?(Your answer must provide reasoning from KYC, KYT, and ratios. ). If you grant additional credit, what business product and why? If you have declined the sales team additional credit, why? What options would you offer them? You are the manager of a credit department. The sales team has presented a large order from a new purchaser, Wizard Industries. For approximately 12 years. Wizard has been installing security and water sprinkler systems in office buildings The salespeople have been well trained, as they have also presented you with the followin financial statements and industry ratios (from your files). In their report they note that sales have increased in the last two years due to Wizard's more aggressive selling approach The sales team is eager for you to grant credit to Wizard Industries. Of course, you must do a complete analysis noting any ratios that are cause for concern or require a further explanation What is your recommendation? Do you grant credit? WIZARD INDUSTRIES Income Statements Year Ended 20XX 20XW 20XV Sales (all on credit) $1,605,100 $1.841,300 $ 1.542.700 Cost of goods sold 1.258.900 1.397.400 1.174.800 Gross prodit 346,200 443.900 367.900 Selling and administrative expense 265,650 256.850 294,200 Amortization 14.000 14,400 16,000 Operating pro 66.550 172.650 57.700 Interest expense 65.100 50.550 50.100 Earnings before taxes 1.450 122,100 7.600 Taxes 350 27.100 2,200 Earnings available to common shareholders $ 1.100 $ 95,000 5.400 Dividends declared $ 70,000 $ 65,000 $ 60,000 WEARD INDUSTRIES Set Dec 31 20xX ZOW 20V An S 14.900 $24.700 S 11.300 7.000 7000 7.000 410.800 161.100 297.300 Cash Marbetade securities Accounts receivable Inventory Prepaid expenses Total current sets Net plant and copment 2:56.600 330.000 289.900 5.500 5200 100 6940.500 724.300 200 362.000 172.900 184,300 Goodwill 25400 30100 Total 2X.200 5925.000 300 5825100 Liabilities and Shareholders' Equity $145.900 Accounts payable $196,700 $209,700 254,000 Bank loan 202.000 169.000 3,700 23.700 14.400 403.600 422.400 393.100 225,800 181.600 141.000 629.400 604,000 534,100 Accrued expenses Total current liabilities Long-term debe Total liabilities Common stock Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 14.000 14,000 14.000 238 500 307 400 278,000 2$2.500 321,400 292.000 $881.900 $925.400 $826.100 Ratio Calculations No C subn Ratio Analysis Miss Point Leveraging Miss Point o po Credit Decision Resp show com of unde to thi probl Grammar, Usage, Som and Mecahnics spelli PI ar Step by Step Solution
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