Ratio calculations from financial statements, Financial Management

Assignment Help:

Ricardo Martinez has prepared the following financial statement projections as part of his business plan for starting the Martinez Products Corporation.  The venture is to manufacture and sell electronic components that make standard overhead projectors "smart." In essence through voice commands a projector can be turned on, off, and the brightness of the projection altered.  This will allow the user to avoid audience annoyances associated with a bright projection light during periods when no overhead transparency is being used.  Venture investors usually screen prospective venture opportunities in terms of projected profitability and financial performance.

Use the following projected financial statement for Martinez Products to calculate financial ratios showing the venture's projected (a) gross profit margin, (b) net profit margin, (c) asset intensity, and (d) ROA

{Ratio Calculations} Ricardo Martinez, the founder of Martinez Products Corporations (see problem 8), projects sales to double to $400,000 in the second year of operation.

If the financial rations calculated for year 1 in problem 8 remain the same in Year 2, what would be Martinez dollar amount projections in his business plan for (a) gross profit, (b) net profit or income, and (c) total assets?


Related Discussions:- Ratio calculations from financial statements

Explain benefits of investing via international mutual funds, What are the ...

What are the benefits of investing via international mutual funds? Answer:  The benefits of investing via international mutual funds consist of: (a) Save transaction or info

Case let, This case has been framed in order to test the skills in evaluati...

This case has been framed in order to test the skills in evaluating a credit request and reaching a correct decision. Perluence International is large manufacturer

What is maturity, Q. What is Maturity? Maturity: The maturity period of...

Q. What is Maturity? Maturity: The maturity period of the securities should be short, otherwise, the company might suffer losses on account of getting the funds pre-maturely re

How can we measure total return- rate of return, How can we measure Total r...

How can we measure Total return- Measuring the Rate of Return Total return can be defined as: Total returns = (Cash payment received + Price change over the period) / Purcha

Explain implement budget-financial delegations, 1: How will you inform your...

1: How will you inform your managers and supervisors about budgets, reporting requirements and financial delegations? 2: What mechanism you will implement to ensure that there a

Pre-requisites for effective budgetary control system, ORGANISATION FOR BUD...

ORGANISATION FOR BUDGETARY CONTROL (or) PRE-REQUISITES FOR THE INTRODUCTION OF AN EFFECTIVE BUDGETARY CONTROL SYSTEM 1.   BUDGET CENTRE:  It is a section of the organization

Valuing a callable bond using binomial model, The process of va...

The process of valuing a callable bond is similar to that of an option-free bond, except for one thing - when the call option may be exercised b

''a'' priori probability, 'A' Priori Probability This is a probability ...

'A' Priori Probability This is a probability computed by rationally examining existing information. A priori probability can most simply be explained as making a conclusion on

Cash flows from mortgage- backed security, It is a well known fact th...

It is a well known fact that the value of a financial claim reflects the present value of the cash flows produced by the financial claim. While valuing an MBS an

State about the country analysis and political risk, Country analysis and p...

Country analysis and political risk Country analysis could use tools for example PEST factors in order to strategically analyse countries. Political risk

Write Your Message!

Captcha
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