Reference no: EM131376073
Start with the partial model in the file IFM9 Ch08 P12 Build a Model.xls from the ThomsonNOW Web site. This problem requires you to further analyze the financial data given for Cumberland Industries in the Build a Model problem. Cumberland Industries' common stock has increased in price from $14.75 to $17.25 from the end of 2005 to the end of 2006, and its shares outstanding increased from 9 to 10 million shares during that same period. Cumberland has annual lease payments of $75,000 (which are included in operating costs on the income statement), but no sinking fund payments are required. Now answer the following questions.
Using Cumberland's financial statements as given in the Chapter 7 Build a Model problem, perform a ratio analysis for 2005 and 2006. Consider its liquidity, asset management, debt management, profitability, and market value ratios.
a. Has Cumberland's liquidity position improved or worsened? Explain.
b. Has Cumberland's ability to manage its assets improved or worsened? Explain.
c. How has Cumberland's profitability changed during the last year?
d. Perform an extended Du Pont analysis for Cumberland for 2005 and 2006.
e. Perform a common size analysis. What has happened to the composition (that is, percentage in each category) of assets and liabilities?
f. Perform a percent change analysis. What does this tell you about the change in profitability and asset utilization?
|
How are nozzles rated and what does oil viscosity mean
: List the grades of fuel oil, and give a brief description of each type.
|
|
What we think of as illness and what we do about it
: Turn in a 300-500 word essay drawing on ideas from the Conrad et al. article on 1-how medical industries shape 2- what we think of as illness and what we do about it.
|
|
Discuss the group development process
: Can organizations create substitutes for leadership to cut down on the number of managers they need to employ? Why or why not? Discuss the group development process? Discuss social loafing's effect on a team?
|
|
What were kretovichs annual sales and its dso
: The Kretovich Company had a quick ratio of 1.4, a current ratio of 3.0, an inventory turnover of 6 times, total current assets of $810,000, and cash and marketable securities of $120,000. What were Kretovich's annual sales and its DSO? Assume a 36..
|
|
Has cumberlands liquidity position improved or worsened
: Has Cumberland's liquidity position improved or worsened? Explain.- Has Cumberland's ability to manage its assets improved or worsened? Explain.
|
|
What do you see as your strengths regarding working on team
: Based on your self-assessment, what do you see as your strengths and weaknesses regarding working on a team? How does working effectively on a team give you an advantage in the workplace? How do groups normally develop?
|
|
Define each of the given terms
: Define each of the following terms:- Operating plan; financial plan; sales forecast- Pro forma financial statement; percent of sales method- Spontaneously generated funds.
|
|
Explain the difference between natural gas and propane
: What is the most common manifold pressure for natural gas furnaces?
|
|
What conditions does equation give satisfactory predictions
: The following equation can, under certain assumptions, be used to forecast financial requirements:- Under what conditions does the equation give satisfactory predictions, and when should it not be used?
|