Complete a vertical analysis for the income statement

Assignment Help Accounting Basics
Reference no: EM131841257

Financial Statement Analysis

Complete the following tasks: Note: The market price of BabyCakes Int'l, Inc. common stock was $20 on December 31, 2008.

Part A: Complete the 19 ratios listed below.

Determine the following measures for 2008:

1. Working Capital

2. Current ratio

3. Quick ratio

4. Accounts receivable turnover

5. Number of days' sales in receivables

6. Inventory turnover

7. Number of days' sales in inventory

8. Ratio of fixed assets to long-term liabilities

9. Ratio of liabilities to stockholders' equity

10. Number of times interest charges earned

11. Number of times preferred dividends earned

12. Ratio of net sales to assets

13. Rate earned on total assets

14. Rate earned on stockholders' equity

15. Rate earned on common stockholder's equity

16. Earnings per share on common stock

17. Price-earnings ratio

18. Dividends per share of common stock

19. Dividend yield

Part B: Explain what the results of each ratio indicate about the company.

Part C: Complete a horizontal analysis for the Income Statement, and explain your findings.

Part D: Complete a vertical analysis for the Income Statement, and explain your findings.

Attachment:- Baby Cakes Financial Data.rar

Reference no: EM131841257

Questions Cloud

How many records do expect to search before finding number : Suppose you need to look through 1,000,000 records to find a telephone number. How many records do you expect to search before finding the number?
Great composers and color analysis : "Great Composers and Color Analysis" Please respond to one (1) of the following, using sources under the Explore heading as the basis of your response:
Distinguish between serial and concurrent activities : Distinguish between serial activities and concurrent activities. Why do we seek to use concurrent activities as a way to shorten the project's length?
How much longer will the merge sort algorithm take to sort : If you double the size of an array, how much longer will the merge sort algorithm take to sort the new array?
Complete a vertical analysis for the income statement : The market price of BabyCakes Int'l, Inc. common stock was $20 on December 31, 2008. Complete a vertical analysis for the Income Statement
Why does longest path determine the shortest project length : "The shortest total length of a project is determined by the longest path through the network." Explain the concept behind this statement.
Describe a similar recursive algorithm for computing the sum : Manually run the merge sort algorithm on the array 8 7 6 5 4 3 2 1. Describe a similar recursive algorithm for computing the sum of all elements in an array.
What were the agents of globalization : What were the agents of globalization? and how did citizenship in the global world create new problems and responses?
Development of the hydrogen bomb : 1. Why did many scientists who worked on the atomic bomb fear the development of the hydrogen bomb?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

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

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

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.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

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 and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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