Questions for the best tutors, Correct answers only please It the final exam James Madison was brought in as assistant to Computron's chairman, who had the task of getting the company back into a sound financial position Madison must analysis of where the company is now, what it must do to regain its financial health, and what actions to take Your assignment is to help her answer the following questions, using the recent and projected financial information shown next Provide clear explanations, not yes or no answers Why are ratios useful What three groups use ratio analysis and for what reasons Calculate the profit margin, operating profit margin, basic earning power (BEP), return on assets (ROA), and return on equity (ROE) What can you say about these ratios Calculate the inventory turnover, days sales outstanding (DSO), fixed assets turnover, operating capital requirement, and total assets turnover How does Computron's utilization of assets stack up against other firms in its industry Calculate the current and quick ratios based on the projected balance sheet and income statement data What can you say about the company's liquidity position and its trend Calculate the debt ratio, liabilities to assets ratio, times interest earned, and EBITDA coverage ratios How does Computron compare with the industry with respect to financial leverage What can you conclude from these ratios Calculate the price earnings ratio and market book ratio Do these ratios indicate that investors are expected to have a high or low opinion of the company Use the extended DuPont equation to provide a summary and overview of Computron's projected financial condition What are the firm's major strengths and weaknesses What are some potential problems and limitations of financial ratio analysis What are some qualitative factors analysts should consider when evaluating a company's likely future financial performance Section III 21 In relation to the contract of the hire purchase Outline the five provision which govern the termination of a hire purchase agreement by the hirer 22 For a memorandum of the hirer purchase agreement to be enforceable it must contain certain information Explain the type of such information that it must contain 23 The hire purchase act implies some terms in every higher purchase agreement One of these terms is merchantability This is a condition that goods are of merchantable quality unless they are second hand There is however some instances when this condition maybe dispensed with Outline two of the instances when merchantability maybe dispensed with 24 In the context of the hire purchase law explain the various effect of the non registration of hire purchase agreements

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 06, 2024

Questions for the best tutors, Correct answers only please. It the final exam. James Madison was brought in as assistant to Computron's chairman, who had

Questions for the best tutors, Correct answers only please. It the final exam.

James Madison was brought in as assistant to Computron's chairman, who had the task of getting the company back into a sound financial position.Madison must analysis of where the company is now, what it must do to regain its financial health, and what actions to take. Your assignment is to help her answer the following questions, using the recent and projected financial information shown next. Provide clear explanations, not yes or no answers.

Why are ratios useful? What three groups use ratio analysis and for what reasons?
Calculate the profit margin, operating profit margin, basic earning power (BEP), return on assets (ROA), and return on equity (ROE).What can you say about these ratios?
Calculate the inventory turnover, days sales outstanding (DSO), fixed assets turnover, operating capital requirement, and total assets turnover.How does Computron's utilization of assets stack up against other firms in its industry?
Calculate the current and quick ratios based on the projected balance sheet and income statement data. What can you say about the company's liquidity position and its trend?
Calculate the debt ratio, liabilities-to-assets ratio, times-interest-earned, and EBITDA coverage ratios.How does Computron compare with the industry with respect to financial leverage?What can you conclude from these ratios?
Calculate the price/earnings ratio and market/book ratio.Do these ratios indicate that investors are expected to have a high or low opinion of the company?
Use the extended DuPont equation to provide a summary and overview of Computron's projected financial condition.What are the firm's major strengths and weaknesses?
What are some potential problems and limitations of financial ratio analysis?
What are some qualitative factors analysts should consider when evaluating a company's likely future financial performance?

Section III

21. In relation to the contract of the hire purchase. Outline the five provision which govern the termination of a hire purchase agreement by the hirer.

22. For a memorandum of the hirer purchase agreement to be enforceable it must contain certain information. Explain the type of such information that it must contain.

23. The hire purchase act implies some terms in every higher purchase agreement. One of these terms is merchantability .This is a condition that goods are of merchantable quality unless they are second hand. There is however some instances when this condition maybe dispensed with. Outline two of the instances when merchantability maybe dispensed with.

24. In the context of the hire purchase law explain the various effect of the non registration of hire purchase agreements.