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!
Calculation of Average Collection Period and Return on Equity.
Utilizing the attached Enclosure 1 "Balance Sheet and Income Statement for Spectrum, Inc"
ENCLOSURE 1
Spectrum, Inc. BALANCE SHEET (000)
Cash
$500
Accounts receivable
1,500
Inventories
500
Current assets
2,500
Net fixed assets
5,000
Total Assets
$7,500.00
Accounts payable
1,200
Bank note
300
Total current liabilities
Long term debt
4,000
Common stock
Retained earnings
1,700
Total liabilities and owner's equity
$7,500
Spectrum, Inc. INCOME STATEMENT (000)
Net sales
$8,500
Cost of goods sold
3,400
Gross profit
5,100
Operating expenses
2,900
Net operating income
2,200
Interest expense
580
Earnings before taxes
1,620
Income tax (34%)
551
Net income
$1,069
a) Compute the following ten (10) financial ratios and provide a one sentence explanation of the analytic use of each ratio test. Show your formulas and input. Accuracy to two decimal points is sufficient. b) Evaluate how Spectrum's financial performance compares to their Industry for each calculated ratio. It is sufficient to rate each ratio as "G"= good, "S" = satisfactory, or "P" = poor.
Industry Norms
Average collection period*
75 days
Return on Equity
12%
* ---Assume all sales are credit sales
Computation of Dividend paid on common stock under non-cumulative & cumulative schemes. Compute the dividends paid to each class of stock in each of those years assuming the preferred stock is non-cumulative. Use the matrix format listed be..
Computation of value of the bond and What is the total interest expense recorded on these bonds over the fifteen years if the market rate of interest
Find correct answer on weighted average cost of capital for Campbell Co. is trying to estimate its weighted average cost of capital (WACC)
Calculate the present values of investment using future values investments returns
Calculation of operating income, EBIT and dividend per share - What was the firm's operating income, or EBIT and What dividend per share should the company declare
The investment allocation is suboptimal if another portfolio composition offers: Higher expected return, Lower systematic risk, Lower expected return for a given level of risk.
What will the value of the firm be if the company takes on debt equal to 100 each cent of its unlevered value?
Discuss the capital structure of the firm and What conclusions can you draw from this example regarding the use of debt
Objective type question on currency exchange rates and foreign subsidiaries and When an MNC cannot produce an actual product in a foreign subsidiary due to political restrictions
Calculating the investment worth for the next six years and wants to invest equally amounts at the end of each year
Computation of present value of an investment and present value if you receive these payments at the beginning of each year rather than at the end of each year
it is is true that Vertical integration involves the acquisition of competitors and Synergy is a common motive for mergers
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: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd