Ratio Analysis Memo for Riordan Manufacturing, Inc. By Teri N. Owens University of Phoenix XACC/291 STEVEN GERMAN November 23, 2014 * Liquidity ratios 1. Current ratio $14,524,790 / $2,750,057 = 5.3% 2. Acid-Test $5,605,347 / 2,750,057 = 2.03 3. Receivables turnover 12564004 / 2669824.5 = 4.7 times 4. Inventory turnover 56,534,254 / 8,517,203 = 6.6 * Profitability ratios 5.
Financial Accounting: Tools for Business Decision Making. Prepare the ratios outlined in the Excel template provided in the Course Materials forum. Depending upon the source, some ratios can be calculated various ways—be sure to calculate these ratios as defined in our text: Financial Accounting: Tools for Business Decision Making. Provide a 750-1,250 memo to your CEO. Address the following items: Provide your calculated ratios.
Executive Summary Prepared for MGMT 311- Principles of Marketing Dr. Victor Heller by Rob Sherwin Student-Embry Riddle Aeronautical University January 17, 2013 Contents Part I - Executive Summary 1 Part II – Description of Business and Industry 3 Description of Business and Industry 3 Industry Overview 6 Part III – Market Opportunity Analysis 8 Market Profile 8 Customer Profile 12 Key Competitor’s Profile 14 Part IV - Marketing Plan and Sales Tactics 16 Target Markets 16 Global Computer Industries Product Line 17 Research and Development 18 Pricing 19 Promotion 20 Distribution 20 Part V – Financial Plan 22 Profitability Results 22 Global Computer Industries - ABC Analysis 23 Break-even Analysis for GCI TravELITE 23
Chic Paints Plan Introduction to business (Section 4)Which accounting function will you be reviewing?Accounts Receivable/Credit ControlOverview of the business (PC 1.3)How big is the business – staff, offices, turnover?Chic Paints Ltd manufactures and supplies specialist paint products such as those used on boats, cars and industrial machines. It operates business to business. The company was formerly part of Ashstead Plc, but was the subject of a management buyout (MBO) from its previous owners in 2008 by five of its directors, whom had managed the company for many years. Prior to the MBO the Ashstead Plc operated a conglomerate manufacturing a wide range of products but this was considered to be no longer viable and as a result Chic Paints Ltd was sold off. Following the MBO the company moved away from the household paints market and towards the niche market of specialised paints as there is less competition and profit margins are higher.
Ratio Analysis Memo ACC 291 Ratio Analysis Memo This assignment required the members of Team D to choose a virtual organization to prepare a memo to the CEO of said company discussing the finding of our ratio calculations and to submit a horizontal and vertical analysis for both the balance sheet and income statement. Team D chose Berry's Bug Blasters as our virtual company. We chose use the financial statements from the year 2005 through 2008 for this comparison. The ratio calculations we will show are liquidity, profitability, and solvency. LIQUIDITY RATIOS Current Ratio (Current Assets/Current Liabilities) 2008 $1,836,770.12/$306,805.71 = 5.986 Ratio = 5.99:1 2007 $1,308,685.20/$366,786.29 = 3.567 Ratio = 3.57:1 2006 $313,556.46/$180,107.60 = 1.7409 Ratio = 1.74:1 Acid Test (Quick Ratio) (Cash + Short Term Receivables + Receivables (Net)/Current Liabilities) 2008 $818,440.68+$812,395.13/$306,805.71 = 5.315 Ratio = 5.32:1 2007 $291,703.44+$811,047.45/$366,786.29 = 3.006 Ratio = 3.01:1 2006 $32,901.07+$198,281.67/$180,107.60 = 1.283 Ratio = 1.28:1 Receivable Turnover (Net Credit Sales/Average Net Receivables) 2008 $3,249,580.53/ ($812,395.13+$811,047.45/2) $3,249,580.53/$811,721.29 = 4.003 = 4.0% 2007 $3,893,027.78/ ($811,047.45+$198,281.67/2) $3,893,027.78/$504,664.56 = 7.714 = 7.7% 2006 $1,903,504.00/ ($198,281.67+$36,595.21/2) $1,903,504.00/$117,438.44 = 16.208 = 16.2% Inventory Turnover (Cost of Goods Sold/Average Inventory) 2008 $3,249,580.53/ ($205,934.30+$205,934.30/2) $3,249,580.53/$205,934.30 = 15.779 = 15.8% 2007 $3,893,027.78/ ($205,934.30+$82,373.72/2) $3,893,027.78/$144,154.01 = 27.006 = 27.0% 2006 $1,903,504.00/ ($82,373.72+$20,593.43/2) $1,903,504.00/$51,483.58 = 36.973 = 37.0% PROFITABILITY RATIOS Profit Margins (Net Income/Net Sales)
BRIEF CASES HARVARD BUSINESS PUBLISHING 3254 OCTOBER 10, 2008 WILLIAM J. BRUNS The Talbots, Inc., and Subsidiaries: Accounting for Goodwill This cases talks the treatments of goodwill and intangible assets through an international specialty retailer and direct marketer of women’s apparel, Talbots, Inc., buying another multi-channel specialty retailer of women’s apparel, J. Jill. Based on the purchase on May 3, 2006, of J. Jill by Talbots, $518,320,000 was paid to shareholders of J. Jill in Cash. 21,551,767 shares of J. Jill were purchased by Talbots. The fair market value of assets that Talbots acquired from J. Jill was $687,572,000. Talbots was willing to pay more than the fair value of the tangible assets acquired from J. Jill, because J. Jill had intangible assets that worth some money.
Capital Mortgage Insurance Corporation (CMI) is a wholly owned subsidiary of Northwest Equipment Corporation (NEC). NEC expects Frank Randall, company president; to build CMI into a larger more diversified financial service company. To do this Randall wants to acquire Corporate Transfer Services (CTS) a small relocation services company, as part of a plan for diversification. Informal discussions took place with the principal stockholders of CTS four months ago. Currently, formal negotiation strategy plans are in the works and a purchase offer is in the development stage.
Warren Buffet What is the possible meaning of the changes in stock price for Berkshire Hathaway and Scottish Power plc on the day of the acquisition announcement? Specifically, what does the $2.17-billion gain in Berkshire’s market value of equity imply about the intrinsic value of PacifiCorp? May 24, 2005 marked the day of Warren Buffett’s (CEO of Berkshire Hathaway Inc.) largest acquisition since 1998. On this day it was announced that the electric utility company PacifiCorp was going to be acquired by the Berkshire Hathaway subsidiary, MidAmerican Energy Holdings Company. PacifiCorp was purchased from their “parent” company Scottish Power plc.
Hanson Tax Services Business Plan Prepared by: Jaquelyn Hanson October 8, 2014 Hanson Tax Services Business Plan 2014 Table of Contents Page Confidentiality Agreement……………………………………………………………………………………….3 1) Executive Summary Mission Statement…………………………………………………………………………………4 Business Description………………………………………………………………………………4 New Service………………………………………………………………………………………..4 Funding Request…………………………………………………………………………………..4 2) Company Description Reason for Establishment……………………………………………………………………….5 Industry Overview……………………………………………………………………….………..5 Seasonal Factors……………………………………………………………………….…………5 Position in the Industry…………………………………………………………………….……..5 Legal Issues…………………………………………………………………………………….…..5 Location……………………………………………………………………………………….…...5
Introduction to business (Section 4) Which accounting function will you be reviewing? Accounts Receivable/Credit Control Overview of the business (PC 1.3) How big is the business – staff, offices, turnover? Chic Paints Ltd manufactures and supplies specialist paint products such as those used on boats, cars and industrial machines. It operates business to business. The company was formerly part of Ashstead Plc, but was the subject of a management buyout (MBO) from its previous owners in 2008 by five of its directors, whom had managed the company for many years.