Calculate the profit margin for the company

Assignment Help Financial Management
Reference no: EM132040212

Use the following information to answer questions : Bayside Inc. 2005 Income Statement ($ in thousands) Net sales $5,680 Less: Cost of goods sold 4,060 Less:

Depreciation 420 Earnings before interest and taxes 1,200 Less: Interest paid 30 Taxable Income $1,170 Less: Taxes 410 Net income $ 760 Bayside, Inc. 2004 and 2005 Balance Sheets ($ in thousands) 2004 2005 2004 2005 Cash $ 70 $ 180 Accounts payable $1,350 $1,170 Accounts rec. 980 840 Long-term debt 720 500 Inventory 1,560 1,990 Common stock 3,200 3,500 Total $2,610 $3,010 Retained earnings 940 1,200 Net fixed assets 3,600 3,360 Total assets $6,210 $6,370 Total liabilities & equity $6,210 $6,370 Calculate the following: for 2005 only (You will show your work and put it in the drop box).

Additional Information at the end of 2005: Fair Market Value of the Stock $190 per share Number of Common Shares Outstanding 100,000 Dividends paid during 2005 - $4 per share

1) The ratio reflects that the company has used more debt than equity to finance the growth of the company. ? YES OR NO ?

2) Calculate the Profit Margin for the company?

3) Explain this Profit Margin Percentage. What does it mean?

4) Calculate the Earnings Per Share for the company. (Net Income/Oustanding Shares)

5) Calculate the Price to Earnings Ratio?

6)If the industry Price to Earnings ratio is at 15, what could account for the difference from the industry average?

Reference no: EM132040212

Questions Cloud

What would be the results : If you were to conduct an Orsat analysis of the flue gas, what would be the results? Assume diesel fuel to be dodecane C12H26
Sample of impure potassium chloride : Treatment of a 0.400 g sample of impure potassium chloride with an excess of AgNO3 resulted in the formation of 0.7332 g AgCl
Record the initial investment by fickle : On December 31, the shares had a fair value of $483000. Record the initial investment by Fickle and, if appropriate, an adjustment to record the investment
Calculate the molarity of the hcl : Exactly 50.00 mL of an HCI solution required 29.71 Ba(OH)2 to reach an end point the molarity of the HCI. mL of 0.01963 point with bromocresol green indicator.
Calculate the profit margin for the company : The ratio reflects that the company has used more debt than equity to finance the growth of the company. ? YES OR NO ?
Calculate the required quarterly payment : On April 1, 20X5, Rodriguez secured permanent equipment financing via a $1,200,000, 5-year loan. Calculate the required quarterly payment
What is needed for the down payment in exactly one year : A down payment is the amount that the lender requires the borrower to pay up front to show that the borrower is financially committed.
What is the taxable gain/loss from the sale of the machines : What is the taxable gain/loss from the sale of the machines at the end of the useful life if they are sold for the estimated salvage value?
What is the kp value for the reaction : COCl2 decomposes to CO and Cl2 Initially, the pressure is 1 atm when COCl2 is injected. After equilibrium, the total pressure is 1.2 atm

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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