Selected ratios for the current year for three companies in the office furniture industry follow: Office Inspirations Office By Design Corporation Ratio Max Office Ltd. Inc. Dividend Yield 3.1% 2.0% 0.9% Price Earnings Payout Debt to Assets Return on Equity 24.6 times 19.7 times 29.2 times 2.6% 3.4% 1.0% 64% 72% 66% 24.7% 29.7% 25% Based on the above ratios which company has used leverage to increase its return to investors?
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- Choose the correct letter of answer: Company C financial ratios are as follows: Current ratio: 1.6, Acid-test ratio 1.2, Current Liabilities P2 Million and Inventory turnover ratio 5. What is the sales of the firm? a. 1,000,000.00b. 2,000,000.00c. 3,000,000.00d. 4,000,000.00e. 5,000,000.00The following information is given with respect to the ratio's of two companies Aman Ltd Roger Ltd Current Ratio 2:01 1.60:1 Quick Ratio 1.35:1 1:01 Return on Investment 15% 13% Debt Equity Ratio 2.5:1 1:01 a) Define the concepts of Current and Quick ratio’s and also, reflect on your understandingtowards the financial performance of the companies by looking to the above information? b) Define the terms- Return on Investment and Debt equity ratio and also, reflect on your understanding towards the financial performance of the companies?5. Profitability ratios Profitability ratios help in the analysis of the combined impact of liquidity ratios, asset management ratios, and debt management ratios on the operating performance of a firm. Your boss has asked you to calculate the profitability ratios of Diusitech Inc. and make comments on its second-year performance as compared with its first-year performance. The following shows Diusitech Inc.'s income statement for the last two years. The company had assets of $4,700 million in the first year and $7,518 million in the second year. Common equity was equal to $2,500 million in the first year, and the company distributed 100% of its earnings out as dividends during the first and the second years. In addition, the firm did not issue new stock during either year. Diusitech Inc. Income Statement For the Year Ending on December 31 (Millions of dollars) Year 2 Year 1 2,540 2,000 1,610 1,495 127 80 1,737 803 80 723 181 542 Net Sales Operating costs except depreciation and…
- Selected ratios for the current year for three companies in the office furniture industry follow: Office Inspirations Office By Design Corporation Ratio Max Office Ltd. Inc. Dividend Yield 3.1% 2.0% 0.9% Price Earnings Payout Debt to Assets Return on Equity 24.6 times 19.7 times 29.2 times 2.6% 3.4% 1.0% 64% 72% 66% 24.7% 29.7% 25% Based on the above ratios which company do investors favour for future growth and investment? Office Inspirations Inc. Office By Design Corporation. Max Office Ltd. O None of the above.The following information is given with respect to the ratio of two companies Aman LTD Roger LTD Current Ratio 2:01 1.60:1 Quick Ratio 1.35:1 1:01 Returns On investment 15% 13% Debt Equity Ratio 2:5:1 1:01 Define the concepts of Current and Quick ratio’s and also, reflect on your understanding towards the financial performance of the companies by looking to the above information? 3 b. Define the terms- Return on Investment and Debt equity ratio and also, reflect on your understanding towards the financial performance of the companies?CHALLENGE 10. Using the following data for Jackson Products Company, answer Parts a through g: Jackson Products Company's Balance Sheet December 31, 2010 $ 240,000 Accounts payable $ 380,000 Cash Accounts receivable 320,000 Nates payable (9%) 420,000 Inventory 1,040,000 Other current liabilities 50,000 Total current assets $1,600,000 Total current liabilities $ 850,000 Net plant and equipment 800,000 Long-tem debt (10%) Stockholders' equity 800,000 Total assets $2,400,000 750,000 Total liabilities and stockhalders' equity $2,400,000 Income Statement for the Year Ended December 31, 2010 Net sales (all on credit) $3,000,000 Cost af sales 1,800,000 Gross profit Selling, general, and administrative expenses Eamings before interest and taxes $1,200,000 860,000 $ 340,000 Interest: Notes $37,800 Long-term debt Total interest charges 80,000 117,800 Eamings before taxes $ 222,200 Federal income tax (40%) Eamings after taxes 88,880 $ 133,320
- Examine the selected data over the 5-year period as shown in the table below for Dumbledore Ltd. Item Sales Cost of sales EBIT Interest NPAT Current assets Total assets current liabilities Total liabilities Equity Gross margin Interest coverage Current ratio 2021 $m 286.41 180.03 51.18 37.07 35.13 43.85 226.18 55.99 98.99 127.19 0.37 1.38 0.78 Year 2020 $m 280.80 166.69 51.08 33.70 35.10 43.20 221.75 53.58 91.66 130.09 0.41 1.52 0.81 2019 $m 275.29 154.35 50.98 30.64 35.06 42.56 217.40 51.27 84.87 132.53 0.44 1.66 0.89 2018 $m 269.89 142.91 50.88 27.85 35.03 41.93 213.13 49.06 78.58 134.56 0.47 1.83 U.OJ 2017 $m 264.60 134.19 49.88 25.32 34.51 41.31 206.93 47.40 74.48 132.44 0.49 1.97 0.87 2016 $m 252.00 126.00 48.90 24.00 34.00 40.70 200.90 45.80 70.60 130.30 0.50 2.04 0.89GIVE THE COMPARATIVE INCOME STATEMENT VERTICAL ANALYSIS FROM THE FOLLOWING INCOME STATEMENT BELOW JOLLIBEE INCOME STATEMENT ITEM 2016 2017 2018 2019 2020 Sales/Revenue 113.81B 133.61B 161.17B 179.63B 129.31B Sales Growth - 17.40% 20.62% 11.45% -28.01% Cost of Goods Sold (COGS) incl. D&A - - 132.96B 150.88B 115.39B COGS Growth - - - 13.47% -23.52% COGS excluding D&A 89.27B 105.39B 121.08B 137.38B 100.82B Depreciation & Amortization Expense 4B 4.75B 11.89B 13.5B 14.57B Depreciation 3.93B 4.66B 11.73B 13.34B 14.32B Amortization of Intangibles 68.99M 78.95M 151.82M 145.42M 245.23M Gross Income 20.54B 23.48B 28.21B 28.75B 13.92B Gross Income Growth - 14.30% 20.12% 1.93% -51.57% Gross Profit Margin - - - - 10.77% SG&A Expense - - 17.64B 20.21B 20.42B SGA Growth - - - 14.57% 1.02%…Analyze the following ratios (Good/Not good, Undervalued/Overvalued, or just OK) based on the given industry averages. Ratios Annual Data Industry Average Interpretation Current 5.7 4 Days Sales Outstanding 37 days 42 days Total Debt to Total Capital 47.80% 32.60% Times-Interest Earned 2.2 6 Profit Margin 6.10% 6.00% Return on Invested Capital 10.03% 10.00% Enterprise Value to EBITDA 0.87 1.12 Provide a decision for each analysis.
- GIVE THE COMPARATIVE INCOME STATEMENT HORIZONTAL AND VERTICAL ANALYSIS FROM THE FOLLOWING INCOME STATEMENT BELOW JOLLIBEE INCOME STATEMENT ITEM 2016 2017 2018 2019 2020 Sales/Revenue 113.81B 133.61B 161.17B 179.63B 129.31B Sales Growth - 17.40% 20.62% 11.45% -28.01% Cost of Goods Sold (COGS) incl. D&A - - 132.96B 150.88B 115.39B COGS Growth - - - 13.47% -23.52% COGS excluding D&A 89.27B 105.39B 121.08B 137.38B 100.82B Depreciation & Amortization Expense 4B 4.75B 11.89B 13.5B 14.57B Depreciation 3.93B 4.66B 11.73B 13.34B 14.32B Amortization of Intangibles 68.99M 78.95M 151.82M 145.42M 245.23M Gross Income 20.54B 23.48B 28.21B 28.75B 13.92B Gross Income Growth - 14.30% 20.12% 1.93% -51.57% Gross Profit Margin - - - - 10.77% SG&A Expense - - 17.64B 20.21B 20.42B SGA Growth - - -…Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: 1. Calculate the return on sales. (Note: Round the percent to two decimal places.) 2. CONCEPTUAL CONNECTION Briefly explain the meaning of the return on sales ratio, and comment on whether Juroes return on sales ratio appears appropriate.Data for Lozano Chip Company and its industry averages follow. Calculate the indicated ratios for Lozano. Construct the extended DuPont equation for both Lozano and the industry. Outline Lozano’s strengths and weaknesses as revealed by your analysis. Lozano Chip Company: Balance Sheet as of December 31, 2019 (Thousands of Dollars) Lozano Chip Company: Income Statement for Year Ended December 31, 2019 (Thousands of Dollars)