Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question - (Financial statement analysis) Lopez Electronics' management has long viewed TKO Electronics as an industry leader and uses this firm as a model firm for analyzing its own performance. The balance sheets and income statements for the two firms are as follows:
Lopez Electronics, Inc. Balance Sheet ($000)
TKO Electronics, Inc. Balance Sheet ($000)
Cash
$2,000
$1,500
Accounts receivable
4,500
6,000
Inventories
1,500
2,500
Current assets
$8,000
$10,000
Net fixed assets
16,000
25,000
Total assets
$24,000
$35,000
Accounts payable
$2,500
$5,000
Accrued expenses
1,000
Short-term notes payable
3,500
Current liabilities
$7,000
Long-term debt
8,000
4,000
Owners' equity
9,000
23,000
Total liabilities and owners' equity
Lopez Electronics, Inc. Income Statement ($000)
TKO Electronics, Inc. Income Statement ($000)
Net sales (all credit)
$48,000
$70,000
Cost of goods sold
-36,000
-42,000
Gross profit
$12,000
$28,000
Operating expenses
-8,000
-12,000
Net operating income
$4,000
$16,000
Interest expense
-1,150
-550
Earnings before taxes
2,850
15,450
Income taxes (40%)
-1,140
-6,180
Net income
$1,710
$9,270
1. Calculate the following ratios for both Lopez and TKO:
Current ratio
Times interest earned
Inventory turnover
Total asset turnover
Operating profit margin
Operating return on assets
Debt ratio
Average collection period
Fixed asset turnover
Return on equity
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
Accounting problems, Draw a detailed timeline incorporating the dividends, calculate the exact Payback Period b) the discounted Payback Period. the IRR, the NPV, the Profitability Index.
Term Structure of Interest Rates
Write a report on Internal Controls
Prepare the bank reconciliation for company.
Create a cost-benefit analysis to evaluate the project
Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR
Distinguish between liquidity and profitability.
Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.
Simple Interest, Compound interest, discount rate, force of interest, AV, PV
CAPM and Venture Capital
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd