Ratio calculations from financial statements, Financial Management

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.

Use the following projected financial statement for Martinez Products to calculate financial ratios showing the venture's projected (a) gross profit margin, (b) net profit margin, (c) asset intensity, and (d) ROA

{Ratio Calculations} Ricardo Martinez, the founder of Martinez Products Corporations (see problem 8), projects sales to double to $400,000 in the second year of operation.

If the financial rations calculated for year 1 in problem 8 remain the same in Year 2, what would be Martinez dollar amount projections in his business plan for (a) gross profit, (b) net profit or income, and (c) total assets?

Posted Date: 4/2/2013 2:32:43 AM | Location : United States







Related Discussions:- Ratio calculations from financial statements, Assignment Help, Ask Question on Ratio calculations from financial statements, Get Answer, Expert's Help, Ratio calculations from financial statements Discussions

Write discussion on Ratio calculations from financial statements
Your posts are moderated
Related Questions
Why do a Split? A 4 x 1 Split is an operation by which a shareholder now owns 4 shares for every share he/she had before. Logically, the stock market value of each of these new

Prices and Yields The face value of the government security is Rs.100 or Rs.1,000. Earlier, that is, before 1950s the government bonds were issued at a discount. There was no f

Q. Three-phase source voltages and phase sequence? The elementary three-phase, two-pole generator shown in Figure has three identical stator coils (aa, bb, and cc) of one or

Name two patterns of cash flows for a share of common stock. How does the market determine the value of the most common cash flow pattern for common stock? Cash flows for a sha

Treasury Bills, popularly known as T-bills, are issued in India by the RBI on behalf of the Government of India. T-bills are short-term securities with a maturity of 91

As the early 1980s, foreign portfolio investors have purchased an important portion of U.S. treasury bond issues. Discuss the short-term and long-term influences of foreigners’ por

Why are trend analysis and industry comparison important to financial ratio analysis? Trend analysis assists financial analysts and managers see whether a company's current fin

Explain how the special drawing rights (SDR) is constructed. Also, discuss the circumstances under which the SDR was created. Answer:   SDR was made by the IMF in 1970 as a new r

To what extent does empirical evidence on corporate objectives support the predictions of Baumol’s “Sales Maximisation Hypothesis?”

Q. Explain about Current Value? Current Value - (1) Value of an ASSET at present time as compared with asset's HISTORICAL COST. (2) In finance, amount determined by discounting