Google Inc. is a technology company specializing in Internet-related products and services, including its famous web search engine. dishwashers. Google has a market-to-book ratio of 3.8. Based on your knowledge of the industries in which these two companies market-to-book ratio is OA. less than Google's M/B ratio of 3.8 OB. approximately equal to Google's M/B ratio of 3.8 OC. greater than Google's M/B ratio of 3.8
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- Treynor Pie Company is a food company specializing in high-calorie snack foods. It is seeking to diversify its food business and lower its risks. It is examining three companies—a gourmet restaurant chain, a baby food company, and a nutritional products firm. Each of these companies can be bought at the same multiple of earnings. The following represents information about all the companies. Company Correlation withTreynor PieCompany Sales($ millions) Expected Earnings($ millions) Standard Deviationin Earnings($ millions) Treynor Pie Company +1.0 $ 151 $ 8 $4.0 Gourmet restaurant +0.6 63 7 1.2 Baby food company +0.3 59 3 1.9 Nutritional products company −0.8 75 5 3.4 a-1. Compute the coefficient of variation for each of the four companies. (Enter your answers in millions (e.g., $100,000 should be entered as ".10"). Round your answers to 3 decimal places.) a-2. Which company is the least risky?…The Golden Fence Company and Stone Wall Corporation are competitors in manufacturing walls and fences. You are interested in comparing the two firms' profitability. Their income statements and other information are presented below. LOADING... (Click the icon to view the comparative income statements.) Golden Fence is the larger company based on sales and total assets, so you perform the following steps to compare and analyze the companies. Read the requirements LOADING... . Requirement a. Prepare common-size income statements. Comment on differences in the relative size of each line item. (Round percentages to the nearest tenth of a percent, X.X%.) Percent of Sales Golden Fence Stone Wall Golden Fence Stone Wall (amounts in millions) Company Corporation Company Corporation Sales $987,236 $67,450 % % Cost of goods sold 678,626 43,370 % % Gross profit 308,610 24,080…Analyze and compare Amazon.com, Best Buy, and Wal-Mart Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in the world. Best Buy Co., Inc. (BBY) is a leading retailer of consumer electronics and media products in the United States, while Wal-Mart Stores, Inc. (WMT) is the leading retailer in the United States. Amazon, Best Buy, and Wal-Mart compete in similar markets. Best Buy and Wal-Mart sell through both traditional retail stores and the Internet, while Amazon sells only through the internet. Sales and cash flow information from recent annual reports for all three companies is as follows (in millions): Amazon Best Buy Wal-Mart Sales $135,987 $39,403 $485,873 Cash flows from operating activities 16,443 2,545 31,530 Purchases of property, plant, and equipment (6,737) (582) (10,619) a. Determine the free cash flow for all three companies. Amazon: Best Buy: Wal-Mart: b. Compute the ratio of free cash flow to sales for all three companies. Round percentages…
- Amazon.com, Inc. is the world's leading Internet retailer of merchandise and media. Amazon also designs and sells electronic products, such as e-readers. Netflix, Inc. is the world's leading Internet television network. Both companies compete in the digital media and streaming space. However, Netflix is more narrowly focused in the digital streaming business than is Amazon. Sales and average book value of fixed assets information (in millions) are provided for Amazon and Netflix for a recent year as follows: Netflix Amazon Sales $107,006 $6,780 Average book value of fixed assets 19,403 162 a. Compute the fixed asset turnover ratio for each company. Round to one decimal place. b. Which company is more efficient in generating sales from fixed assets? Interpret your results. C.Treynor Pie Company is a food company specializing in high-calorie snack foods. It is seeking to diversify its food business and lower its risks. It is examining three companies-a gourmet restaurant chain, a baby food company, and a nutritional products firm. Each of these companies can be bought at the same multiple of earnings. The following represents information about all the companies. Correlation with Standard Deviation Sales ($ millions) $ 197 in Earnings ($ millions) $ 4.0 Treynor Pie Company + 1.0 + 0.6 + 0.3 - 0.7 Company Treynor Pie Company Expected Earnings ($ millions) $ 9 $ Gourmet restaurant 64 1.3 Baby food company Nutritional products company 54 1.8 75 3.2 a-1. Compute the coefficient of variation for each of the four companies. (Enter your answers in millions (e.g., $100,000 should be entered as ".10"). Round your answers to 3 decimal places.) Coefficient of Variation Treynor Pie Company Gourmet restaurant Baby food company Nutritional products company a-2. Which…Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in the world. Target Corporation (TGT) is one of the largest value-priced general merchandisers operating in the L'nited States. Target sells through nearly 1,800 brick-and-mortar stores and through the Internet. Amazon and Target compete for customers across a wide variety of products, including media, general merchandise, apparel, and consumer electronics. Cost of goods sold and inventory information from a recent annual report are provided for both companies as follows (in millions): a. Compute the inventory turnover far both companies. Round all calculations to one decimal place.b. Compute the number of days' sales in inventory for both companies. Use 365 days and round all calculations to one decimal place.c. - Which company has the better inventory efficiency?d. What might explain the difference in inventory efficiency between the two companies?
- Analyze and compare Amazon.com to Target Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in the world. Target Corporation (TGT) is one of the largest value-priced general merchandisers operating in the United States. Target sells through nearly 1,800 brick-and-mortar stores and through the Internet. Amazon and Target compete for customers across a wide variety of products, including media, general merchandise, apparel, and consumer electronics. Cost of goods sold and inventory information from a recent annual report are provided for both companies as follows (in millions): Cost of goods sold Inventories: Beginning of year 16,047 8,597 End of year 17,147 9,497 a. Compute the inventory turnover for both companies. Round your answers to one decimal place. Inventory Turnover Amazon.com Amazon Target $139,156 $53,299 Target b. Compute the days' sales in inventory for both companies. Assume a 365-day year. If required, round all computations to one decimal place and use in…Walker Accounting Software is marketed to small accounting firms throughout the U.S. and Canada. Owner George Walker has decided to outsource the company's help desk and is considering three providers: Manila Call Center (Philippines), Delhi Services (India), and Moscow Bell (Russia). The following table summarizes the data Walker has assembled. Which outsourcing firm has the best rating? (Higher weights imply higher importance and higher ratings imply more desirable providers.) In the following table, compute the weighted average score for each of the three providers (enter your responses rounded to one decimal place). Weight Manila Delhi Moscow Criterion Flexibility (W) (A) (B) 0.50 Trustworthiness 0.10 Price 0.20 Delivery 0.20 5689 3 7 6 7 7 J1208 (C) 9 9 Total weighted score:UrLink Company is a newly formed company specializing in high-speed Internet service for home and business. The owner, Lenny Kirkland, had divided the company into two segments: Home Internet Service and Business Internet Service. Each segment is run by its own supervisor, while basic selling and administrative services are shared by both segments.Lenny has asked you to help him create a performance reporting system that will allow him to measure each segment’s performance in terms of its profitability. To that end, the following information has been collected on the Home Internet Service segment for the first quarter of 2017. Budgeted Actual Service revenue $24,800 $25,000 Allocated portion of: Building depreciation 10,300 10,300 Advertising 4,700 4,200 Billing 3,200 3,200 Property taxes 1,100 1,200 Material and supplies 1,400 1,300 Supervisory salaries 9,400 9,400 Insurance 4,300 3,200 Wages…
- Two days ago, Josh analyzed two gigantic home improvement retailers – The Home Depot, Inc. (HD) and Lowe’s Companies, Inc. (LOW) – and found that HD and LOW have the same quick ratio, but HD has a greater current ratio than LOW. Based on the information, Josh concluded that A. HD has a higher receivables turnover ratio. B. LOW has lower payables. C. HD has greater inventory. D. None of the above.QT, Inc., and Elppa Computers, Inc., compete with each other in the personal computer market. QT assembles computers to customer orders, building and delivering a computer within four days of a customer entering an order online. Elppa, on the other hand, builds computers for inventory prior to receiving an order. These computers are sold from inventory once an order is received. Selected financial information for both companies from recent financial statements follows (in millions): QT Elppa Sales $56,940 $120,357 Cost of merchandise sold 44,754 92,385 Inventory, beginning of period 1,382 6,317 Inventory, end of period 1,404 7,490 a. Determine for both companies (1) the inventory turnover and (2) the number of days' sales in inventory. Round your calculations and answers to one decimal place. Assume 365 days a year. QT Elppa 1. Inventory turnover fill in the blank 1 fill in the blank 2 2. Number of days' sales in inventory…Pfizer Inc. (PFE) discovers, produces, and distributes medicines, including Celebrex and Lipi-tor. Ford Motor Co. (F) develops, markets, and produces automobiles and trucks. Microsoft Corporation (MSFT) develops, produces, and distributes a variety of computer software and hardware products including Windows, Office, Excel, and the Xbox. 1. Without computing the return on assets, rank from highest to lowest Pfizer, Ford, and Microsoft in terms of their return on assets. 2. The following data (in millions) were taken from recent financial statements of each company: Pfizer Ford Net income ................................. Total assets at the beginning of the year...... Total assets at the end of the year ............ $ 21,979 154,229 181,476 $ 17,937 257,035 267,261 Microsoft $ 61,271 301,311 333,779 Compute the return on assets for each company using the preceding data, and rank the companies’ return on assets from highest to lowest. Round the return on assets to one decimal place. 3.…