This shows Targets improvement over time to pay its current liabilities based on available cash, short term investments, and receivables. Some items that may have impacted the quick ratio were a major increase in cash & equivalents as well as a generous increase in receivables from 2007 to 2008. Target’s quick ratio was higher than Wal-Mart’s quick ratio. This is an important comparison as Target’s ratio was higher than Wal-Mart’s regardless of the fact that Wal-Mart is a larger company that has traditionally outperformed
HW#1 Part I: Case study: Gap Inc. (5 points) Using the fiscal 2011 (year end Jan 28, 2012) 10k for Gap Inc., answer the following questions. Be sure to provide well written answers that are clearly supported. 1. What was Gap’s Total Assets at the fiscal yearend of 2011? What was its Total Liabilities?
To forecast 2010 sales based on 2009 sales, Equation 1 must be used: St = $500,000 + $1.10St–1 S2010 = $500,000 + $1.10($1,500,000) = $2,150,000 3. Equation 2 requires a forecast of gross domestic product. Equation 3 uses the actual gross domestic product for the past year and, therefore, is observable. 4. Advantages: Using the highest R2, the lowest
Analyzing Pro Forma Statements FIN/571 0ct 18, 2014 Analyzing Pro Forma Statements This project is to analysis of the pro forma financial statements. Pro forma statements are projected or forecast financial statements as a result of long-term financial planning. The financial statements are based on the inputs and assumptions such as a certain percent of sales model in which most of the entries vary directly with the level of sales. The attached excel spreadsheet includes pro forma statements for the next five years. Sales revenue will be increased at twenty percent over the next five years.
?? Step Six The greater decline of Profit Margin compared to Gross Profit Margin may have been caused of the increasing expenses over the years. Based on the analysis, Expenses has been increasing, thus reducing Profit. Another important aspect may have been because the Income Tax has been increasing, reducing the profit margin even more. Since Profit Margin are calculated using EBIT, Income Tax plays a great role to affecting the results.
Expenditures of $92,000 for successful litigation in defense of the patent were paid on July 1, 2011. Sisco estimates that the useful life of the patent will be increase by 10 years from the date of litigation becasue of successfully defending it Instructions: Prepare a computation of the carrying value of the patent at December 31,
Income Statement and Related Footnotes a. Is the general format of the income statement closer to single-step or multiple-step? The general format of the income statement is closer to multiple-step. b. Income Statement figures for the most recent fiscal year Cost of goods sold Amount | Percentage of total revenue | $47,860,000,000 | 68.50% ($47,860,000,000/$69,865,000,000) | Reference: Consolidated Statements of Operations, Form 10-K, Page 31.
The net sales also increased from year 14 to year 17 ending at $7,115,112. This showed to be very profitable with trend percentages at 103.7%. A2) There are certain risks a banker might be concerned with. Over the years the advertising expenses have increased from $243,000 to $255,600. The increase in advertising can be helping with increase in net sales which has also increased from 46,520,500 in year 12 to $6,858,600 in year 14.
Is ADM growing or shrinking its investment base in PPE? It is growing its base in PPE, as it continues to buy more PPE then the depreciation expense by a significant amount. 6. Estimate ADM’s free cash flow by taking CFO – CFI. Was their free cash flow positive or
By looking at the trading, profit & loss forecast for the year, you can see that things look like they will go reasonably well over the year as it shows a net profit of £15808. You may need to consider the possibility of a rise in fuel prices or the possibility of a fuel shortage in the current climate. This could affect your business by raising the cost of sales. You should look at increasing your revenue figure in order to counteract this. Look at your pricing policy and make changes appropriately.