What can you say about the firm financial condition

Assignment Help Financial Management

Reference no: EM131066123

Problem 3-13: Warner Company Income Statement

-What can you say about the firm's financial condition based on these financial statements?"

-Using the CSU Online Library find one article that discuses financial statements, cash flow, or ratio analysis. Briefly summarize the key points of the article as it relates to this unit. You may use any of the databases, but Business Source Complete is a good starting place.

Problem 3-15: Answer the following four questions using the information found in the statements.

a. Does BigBox generate positive cash flow from its operations?

b. How much did BigBox invest in new capital expenditures over the last four years?

c. Describe BigBox's sources of financing in the financial markets over the last four years.

d. Based solely on the cash flow statement for 2010 through 2013, write a brief narrative that describes the major activities of BigBox's management team over the last four years.

Problem 4-25: Instructions to use the Solution Template

Step 1 Enter the given values from the textbook on page 116 in the yellow colored cells below.

Step 2 In Cell E52, Calculate Current ratio using formula "Current Assets / Current Liabilities"

Step 3 In Cell E53, Calculate Times interest earned using formula "Net Operating Income/ Interest Expense"

Step 4 In Cell E54, Calculate Inventory Turnover using formula "Cost of goods sold/ Inventory"

Step 5 In Cell E55, Calculate Total Asset turn Over using formula "Net Sales / Total Assets"

Step 6 In Cell E56, Calculate Operating Profit Margin using formula "Net Operating Income / Net Sales"

Step 7 In Cell E57, Calculate Operating Return on Assets using formula "Net Operating Income / Total Assets"

Step 8 In Cell E58, Calculate Debt Ratio using formula "( Current Liabilities + Long-term debt) / Total Assets"

Step 9 In Cell E59, Calculate Average Collection Period using formula "( Accounts Receivable * 365 ) / Credit Sales "

Step 10 In Cell E60, Calculate Fixed Asset Turnover using formula "Net Sales / Net Fixed Assets "

Step 11 In Cell E61, Calculate Return on Equity using formula "Net Income / Owner's Equity".

Detailed Question: Use the provided Excel template to submit your responses to each of the study problems from the textbook below:

3-13, p. 72. Review of financial statements·

3-15, p. 73. Analyzing the cash flow statement·

4-25, p. 116. Calculating financial ratios·

Each question has a corresponding worksheet (look for the tab along the bottom of the workbook). The cells can be adjusted, added, or removed as necessary.

Textbook: Titman, S., Keown, A. J., & Martin J. D. (2014). Financial management: Principles and applications (12th ed.). Upper Saddle River, NJ: Pearson.

Attachment:- Excel template.rar

Reference no: EM131066123

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