Finance Questions
Nursingwritersden.com presents itself as a viable option for nursing students seeking academic assistance. With a team of specialized writers, customized content, timely delivery, confidentiality, and dedicated customer support, the platform offers numerous benefits to its users. Students view Nursingwritersden.com services as a supportive tool to enhance their academic knowledge rather than a replacement for their own learning efforts. You can make your order today and you will never be disappointed.
There are 6 questions listed below. Please complete in Excel and show work.
1. The Robinson Company has the following current assets and
current liabilities for these two years:
2014 2015
Cash and marketable securities $50,000 $50,000
Accounts receivable 300,000 350,000
Inventories 350,000 500,000
Total current assets $700,000 $900,000
Accounts payable $200,000 $250,000
Bank loan 0 150,000
Accruals 150,000 200,000
Total current liabilities $350,000 $600,000
a. Compare the current ratios between the two years.
b. Compare the acid-test ratios between 2014 and 2015.
Comment on your findings.
2. The Robinson Company had a cost of goods sold of $1,000,000 in
2014 and $1,200,000 in 2015.
a. Calculate the inventory turnover for each year. Comment on
your findings.
b. What would have been the amount of inventories in 2015 if
the 2014 turnover ratio had been maintained?
3. The Dayco Manufacturing Company had the following financial
statement results for last year. Net sales were $1.2 million with net
income of $90,000. Total assets at year end amounted to $900,000.
a.Calculate Dayco’s asset turnover ratio and its profit margin.
b. Show how the two ratios in Part (a) can be used to determine
Dayco’s rate of return on assets.
c. Dayco operates in an industry whose average ratios are these:
Return on assets: 11 percent; Asset turnover: 2.5 times; Net
profi t margin: 3.6 percent. Compare Dayco’s performance
against the industry averages.
4. Next year, Allgreens expects its sales to reach $33,000 with an
investment in total assets of $10,750. Net income of $1,225 is anticipated.
This year, sales were $30,000, total assets were $9,900, and net
income was $1,000. Last year, these fi gures were $28,000, $9,000, and
$750 respectively.
a. Use the DuPont system to compare Allgreens’ anticipated performance
against its prior year results. Comment on your findings.
b. How would Allgreens compare with the industry if it operates
in the same industry as Dayco (see Problem 3) and if the
industry average ratios remain the same over time?
5. Following are selected financial data in thousands of dollars for the
Hunter Corporation
2015 2014
Current assets $500 $400
Fixed assets, net 700 600
Total assets 1,200 1,000
Current liabilities 300 200
Long-term debt 200 200
Common equity 700 600
Total liabilities and equity $1,200 $1,000
Net sales $1,500 $1,200
Total expenses 2 1,390 2 1,100
Net income 110 100
a. Calculate Hunter’s rate of return on total assets in 2015 and in
2014. Did the ratio improve or worsen?
b. Diagram the expanded DuPont system for Hunter for 2015.
Insert the appropriate dollar amounts wherever possible.
c. Use the DuPont system to calculate the return on assets for
the two years, and determine why they changed.
6. Following are financial statements for the Genatron Manufacturing
Corporation for 2015 and 2014.
GENATRON MANUFACTURING CORPORATION
BALANCE SHEET 2015 2014
ASSETS
Cash $40,000 $50,000
Accts. receivable 260,000 200,000
Inventory 500,000 450,000
Total current assets 800,000 700,000
Fixed assets, net 400,000 300,000
Total assets $1,200,000 $1,000,000
LIABILITIES AND EQUITY
Accts. Payable $170,000 $130,000
Bank loan 90,000 90,000
Accruals 70,000 50,000
Total current liabilities 330,000 270,000
Long-term debt, 12% 400,000 300,000
Common stock, $10 par 300,000 300,000
Capital surplus 50,000 50,000
Retained earnings 120,000 80,000
Total liabilities & equity $1,200,000 $1,000,000
INCOME STATEMENT 2015 2014
Net sales $1,500,000 $1,300,000
Cost of goods sold 900,000 780,000
Gross profi t 600,000 520,000
Expenses: general and administrative 150,000 150,000
Marketing 150,000 130,000
Depreciation 53,000 40,000
Interest 57,000 45,000
Earnings before taxes 190,000 155,000
Income taxes 76,000 62,000
Net income $114,000 $93,000
a. Apply DuPont analysis to the 2015 and 2014 financial statements’
data.
b. Explain how financial performance differed between 2015 and
2014.
In the pursuit of academic success, the notion of quality work stands as an indispensable cornerstone. Whether in the realm of education, research, or professional endeavors, the adherence to high standards ensures that outcomes are not only exemplary but also a testament to one’s commitment to excellence. Nursingwritersden.com assures high quality work and timely delivery for all assignments. In the rare event that a student is dissatisfied with the final paper, Nursingwritersden.com offers revision services. The platform is committed to ensuring that each nursing term paper meets the student’s expectations and academic standards. As such, they have quality assurance protocols in place to maintain the highest level of quality in their work.
Do you need a similar assignment done for you from scratch? We have qualified writers to help you. We assure you an A+ quality paper that is free from plagiarism. Order now for an Amazing Discount!
Use Discount Code "Newclient" for a 15% Discount!
NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.
