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15. Financial ratio data is listed below for Crazy A's Horse Trailers. Explain how the company is performing from a liquidity, efficiency, cash flow and leverage perspective. Please provide a brief explanation for each perspective using at least 2 ratios you think is appropriate for each category.;Crazy A's Horse Trailers;Ratios;Ratio;Industry;2012;2011;2010;Current;1.20x;1.18x;1.20x;1.35x;Quick;0.20x;0.18x;0.21x;0.26x;Cash Flow Liquidity;0.50x;(0.11x);(0.09x);(0.05x);Average Collection Period;4 days;9 days;8 days;6 days;Days Inventory Held;75 days;106 days;99 days;90 days;Days payable outstanding;10 days;11 days;12 days;8 days;Fixed Asset Turnover;11.30x;8.84x;8.89x;8.95x;Total Asset Turnover;2.50x;2.20x;2.27x;2.42x;Debt Ratio;75.10%;78.47%;76.04%;70.17%;Long Term Debt to;Total Capitalization;29.30%;41.09%;36.91%;35.33%;Debt to Equity;3.50x;3.65x;3.17x;2.35x;Times Interest Earned;2.40x;1.72x;2.00x;2.23x;Fixed Charge Coverage;1.50x;1.59x;1.77x;1.85x;Gross Profit Margin;23.10%;21.21%;22.39%;23.52%;Operating Profit Margin;2.00%;3.05%;2.86%;2.52%;Net Profit Margin;1.10%;0.89%;1.00%;0.97%;Cash Flow Margin;4.30%;(5.31%);(5.15%);(4.48%);Return on Investment;2.75%;1.97%;2.28%;2.35%;Return on Equity;11.04%;9.14%;9.51%;7.88% (Points: 15);Question 16. 16. Below is a Statement of cash Flows for BK Enterprises. Using the information explain the company what is the company?s cash flow situation from 2010 through 2012, with specific reference to the three sections of the Cash Flow Statement.;BK Enterprises;Statement of Cash Flows;For the Years Ended December 31, 2012, 2011, and 2010;2012 2011 2010;Net income $5,800 $3,300 $800;Adjustments to reconcile net income;to net cash provided by (used for);operating activities;Depreciation 1,200 520 380;Loss on sale of bus.assets 10 0 305;Changes in assets and liabilities;Accounts receivable (490) (375) (135);Inventory (6,900) (2,600) (1,700);Other current assets 410 (495) (160);Accounts pay & accr. exp. 1,300 570 1,100;Net cash provided;by operating activities $1,330 $920 $590;Cash flows from investing activities;Capital expenditures (740) (1,100) (550);Sales of equipment 0 10 2,020;Net cash used by;investing activities ($740) ($1,090) $1,470;Cash flows from financing activities;Exercise of stock options 2,000 380 0;Capital lease obligations 0 0 (250);Payments on mortgage 0 0 (1,800);Net cash (used) provided by financing;activities $2,000 $380 ($2,050);Net increase (decrease) in cash;$2,590 $210 $10;Cash at beginning of period;900 730 400 Cash at end of period $3,490 $940 $410 (Points: 15);Question 17. 17. Identify the following items as operating (O), investing (I), or financing (F) activities;a. Property, plant and equipment;b. Current maturities of long-term debt;c. Inventories;d. Accounts receivable;e. Common stock;f. Short-term debt;g. Accounts payable;h. Net income;i. Accumulated depreciation;j. Dividends (Points: 10);Question 18. 18.;Use the following selected financial data for Crazy A Corporation to answer questions 14-18.;Net sales $500,000;Cost of goods sold 300,000;Operating expenses 100,000;Net income 30,000;Total assets 180,000;Total liabilities 120,000;Cash flow from operating activities 10,000;14. Crazy A?s debt ratio is;15. Crazy A?s cash flow margin is;16. Crazy A?s operating profit margin is;17. Crazy A?s return on equity is;18. Crazy A?s net profit margin is;Please provide your answer for each question. (Points: 20)

 

Paper#80785 | Written in 18-Jul-2015

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