What does a comparison of keystone to these averages

Assignment Help Finance Basics
Reference no: EM131119818

Keystone Resources has a net profit margin of 8 percent and earnings after taxes of $2 million. Its current balance sheet is as follows:

a. Calculate Keystone's return on stockholders' equity.

b. Industry average ratios are

Net profit margin ........ 10%

Total asset turnover ...... 2.0 times

Equity multiplier ........ 1.5 times

What does a comparison of Keystone to these averages indicate about the firm's strengths and weaknesses?

c. Keystone has inventories of $3.2 million. Compute the firm's quickratio.

Reference no: EM131119818

Questions Cloud

How to integrate leadership into two management functions : What roles do leadership and innovation play within each of the four management functions? Provide an example of how to integrate leadership into at least two management functions.
Correctional supervision of offenders : Correctional supervision of offenders in the community as an alternative to sending them to prison or jail is the definition of?
Letter to a charity or non-profit organization : Write a goodwill letter to a charity or non-profit organization that has requested a donation from your company. Be respectful and supportive of the specific work they do, but make it clear you won't be providing any assistance.
Examples of different types of intermediate sanctions : Provide specific examples of different types of intermediate sanctions. Conclude your response by evaluating whether or not you believe intermediate sanctions as they are currently designed are effectively working to rehabilitate offenders.
What does a comparison of keystone to these averages : What does a comparison of Keystone to these averages indicate about the firm's strengths and weaknesses? Keystone has inventories of $3.2 million. Compute the firm's quickratio.
Technologies be involved in improving a process : Part 1: Answer the Module Review Questions listed below. These questions were chosen to demonstrate your understanding and help you assess your progress.
Brief overview of policing and police officers : Brief overview of policing and police officers and leads into a discussion of today's organization of law enforcement, which includes police personnel.
Find optimal shipments that minimize total production costs : Determine the optimal shipments that will minimize total production and transportation costs for the apparel company.
What is meant by the terms manager as coach : Most of us are familiar with the role of a manager and a leader. We also know the functions each is expected to perform. What is meant by the terms manager as coach (MAC)

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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