Calculate the ratios

Assignment Help Financial Accounting
Reference no: EM13129790

Analyzing Whirlpool's Acquisition of Maytag
To complete the requirements below you will need to obtain Whirlpool's income statements for 2005, 2007, and 2008, and its balanmce sheets for 2004 through 2008. The easiest way to obtain these income statements is to retrieve the company's 2005 and 2008 Form 10-Ks. To obtaim the Form 10-Ks you can use the EDGAR system followimng the instructions in Appendix A, or they can be found under the "Investors" link on the company's corporate website, www.whirlpoolcorp.com. On March 31, 2006, Whirlpool Corporation acquired Maytag, another manfacturer of home appliances. The company 2006, 2007,and 2008 finncial statements include the activities of May tag; its 2005 and 2004 statement do not.

Required

a. Calculate the following ratios for 2005, 2007, 2008 show your calculations.

Gross margin percentage net margin
Return on investment Return on equity
Current ratio Debt to assets ratio

b. Base on the ratios computed in requirement a, comment on the apparent effects of Whirlpool's acquisition of Maytag. Assume any significant change in these ratios was the result of the aquistion.

c. Based on this limited analysis, does it appear that the short-term effects of the acquisition were good or bad for Whirlpool

Reference no: EM13129790

Questions Cloud

Calculate the wavelength and wavenumber of the photon : Consider a molecule with spacing between two energy levels of 0.250 kJ mol-1. Calculate the wavelength and wavenumber of the photon that would be needed to lead to an excitation between these two levels.
How common are dividend distributions in today economic : How common are dividend distributions in today's economic climate, particularly since the economic downturn of 2008 and 2009? Please comment on whether dividend distributions are concentrated in the companies that are publicly traded or whether cl..
Describe whether you believe an accounting process : it was the accounting rule that caused the financial institutions' balance sheets to look bad. Describe whether you believe that following an accounting process can cause a company to experience economic problems.
What should the unit price be : Cara has received a special order from a foreign company for 5,000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $4,250 for shipping.
Calculate the ratios : Base on the ratios computed in requirement a, comment on the apparent effects of Whirlpool's acquisition of Maytag. Assume any significant change in these ratios was the result of the aquistion. Calculate the ratios?
Illustrate what pretax amounts related to the lease : What pretax amounts related to the lease would Georgia-Atlantic report in its balance sheet at December 31, 2011? Illustrate what pretax amounts related to the lease would Georgia-Atlantic report in its income statement for the year ended December ..
Explain gordon gekko in movie wall street that greed is good : Explain the view of Gordon Gekko in the movie Wall Street that "greed is good". Then, explain Solomon's analysis and critique of this notion. Describe an instance or example that you believe exemplifies "greed" in the current financial crisis.
What amount of loss may monica use for the current year : Monica (not in the loan business) loaned Lateisha $25,000 two years ago. During the current year, Lateisha declared bankruptcy. The bankruptcy trustee informed the unsecured creditors that no assets are available for distribution from the bankrupt..
Problem regarding preferred stock at par value : On June 1, Year 5, the common stock split 3 for 1, and the company redeemed one-half of the preferred stock at par value. Cooper Inc.'s net income for the year ended May 31, Year 6 was 10% higher than in Year 5. Basic earnings per share in Year 6 ..

Reviews

Write a Review

Financial Accounting Questions & Answers

  Determine the amortization of the net gain

Determine the pension liability/asset to be recorded and determine the 2012 amortization of the net gain.

  Illustrate what are associated with using average cost

Illustrate what problems are associated with using the average cost per unit as a performance measure? What problems are associated with using the variable cost per unit as a performance measure?

  Find the activity variance for revenue

Find the activity variance for revenue? Describe this variance and find the spending variance for the cost of ingredients? Describe this variance.

  What are distributive shares for each partner

What are distributive shares for each partner, assuming they all continue to hold their interest at the end of the year? What are Becky and Chuck’s distributive shares for the current year?

  Journal entry to record the bonds issuance

Prepare the 1st January, 2011, journal entry to record the bonds' issuance and Prepare first two years of an amortization table using straight-line method.

  Illustrate what is the equity in income of sacco for

Assume Dawson has the ability to significantly influence the operations of Sacco. Illustrate what is the equity in income of Sacco for 2011?

  Illustrate what is the minimum price that company should set

Assume if PowerPunch sells for $7.25 per bottle, how much profit does the company earn per bottle of PowerPunch that it sells? Illustrate what is the minimum price that the company should set per bottle of SlimLife?

  Create he journal entry to record the purchase of treasury

Create he journal entry to record the purchase of treasury stock by the cost method. 5,000 shares of treasury stock are reissued at $33 per share. Prepare the journal entry to record the reissuance by the cost method.

  Journal entries for received balance due on sale on account

Journal entries for received balance due on the sale on account. Sold Merchandise Inventory for $123,340 cash.  No shipping charges were incurred related to the sale.

  Find out the appropriate income statement presentation

Determine the appropriate income statement presentation (sales, cost of sales, gross profit, operating income or expense, non-operating income or expense) for each item noted above. Note that L&L presents a subtotal for operating income on the income..

  Prepare a cash budget for march, april, and may

Budgeting involves computation of cash budget - which is also its minimum required cash balance. There is an outstanding loan of $2,000 on March 1. Prepare a cash budget for March, April, and May.

  Prepare a schedule showing amounts -buildings and machinery

Land, Buildings, and Machinery - Prepare a schedule showing the amounts to be recorded as Land, Buildings, and Machinery.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd