Financial Analysis * The tax rate is approximately 30% 5.618.8=29.79% 5.418.1=29.83% 5.418=30% * Based on the industry average, a sports store of similar size should be making around $21000 or 67% more profitable than Rhodes’ store. * Assuming the lots are of the same size and bear the same tax burden, if the unused lot is sold off property taxes would be reduced by $6000 at the 2008 rate. All else being equal, this would increase net profit by 6000×0.30=$1800, for a total of $14400. Profit as a percentage of sales would increase from 2.1% to 2.4%. * Of the $18400 Rhodes made in mortgage payments last year, $8000 was interest.
Introduction to Executive Tools for Decision Making TUI Financial Accounting ACC201 Introduction to Executive Tools for Decision Making APPLE Inc. The total amount of cash available for Apple to pay their current debts is $123.55 billion dollars in favor of assets. I derived this from Apple’s Assets $207 billion and subtracted their liabilities, which was $83.45 billion. I believe that Apple is in good shape due to the total assets the company has received. $207 – 83.45 = 123.55 billion Apple is increasing its investment in operations every year.
income statement and balance sheets in the common size format many trends can be associated with and analyzed with their current situation. As a whole on their income statement operating expenses are increasing while net income available to stockholders is decreasing as a percentage of total sales. In 2006, 3.63% of their sales were available to stockholders, while in 2008 only 1.44% of net income was available to shareholders. Some of the major factors affecting Whole Foods, Inc. income statement include an increase in research and development by 1.31% over a two year period ending September 28, 2008. They also faced increased operational expenses of selling, general, and administrative costs by 0.49%.
The ROE for Sepracor is 33.07%, which means that 33.07 cents of assets are created for each dollar that was originally invested. It measures how Sepracor is using its money. The higher the return on equity, the more funds available to be invested in improving business operations without having to invest more capital. Debt to asset ratio measures the company’s solvency, and the higher the ratio, the lower the borrowing capacity for the company. I would make an investment in the company’s 5% convertible bonds.
Which of the following statements is CORRECT? Answer: e. If the interest rate the companies pay on their debt is less than their earning power. (BEP), then Company HD will have the higher ROE. 4. Muscarella Inc. has the following balance sheet and income statement data: Cash $ 14,000 Accounts payable $ 42,000 Receivables 70,000 Other current liabilities 28,000 Inventories 210,000 Total CL $ 70,000 Total CA $294,000 Long-term debt 70,000 Net fixed assets 126,000 Common equity $280,000 Total Assets $420,000 Total liab.
22 LOWE’S 2010 AnnuAL REpORt Income tax provision Our effective income tax rate was 36.9% in 2009 versus 37.4% in 2008. The decrease in the effective tax rate was primarily due to favorable state tax settlements. LOWE’S BUSINESS OUTLOOK as of february 23, 2011, the date of our fourth quarter 2010 earnings release, we expected total sales in 2011 to increase approximately 5%, which includes the 53rd week. The 53rd week was expected to increase total sales by approximately 1.6%. We expected comparable store sales to increase 1% to 2% in 2011.
This action will help the company down the road as fewer liabilities will result in less cash outflow, and place the company in a position to manage through the construction downturn. Another upside in the balance sheet was that The Home Depot has reported a $63 million dollar increase in stock holder´s equity. This information will be used by potential lenders or investors to determine if this company is worth the investment. In this case, it appears that The Home Depot would be a good credit risk, based on the latest
Public debt decreased from $26 billion in 1921 to $16 billion in 1930 Quotes: 1. “The Harding-Coolidge Era led to the greatest expansion of the US Economy ever seen by contemporary eyes.” (Ronald Reagan) 2. “The Fiscal Conservatism of the 1920s pushed away the recession of 1921-22 and roared America back to the world stage.” (Glenn Beck) 3. “Wealth in the hands of the few would augment the general welfare through increased capital investment.” (Tindall and
Current ratios show relative amount of working capital, while quick ratios show the amount of quick assets by current liabilities. “Ratio analysis is an important and powerful technique or method, general, used for financial analysis. The purpose of financial analysis is to diagnose the information content in financial statements so as to judge the profitability, financial soundness of the firm, and chalk out the way to improve existing performance.” (Ramagopal, 2008) Duke Energy’s Current ratio is 3.54; this is calculated by current assets, 2,049 million, divided by current liabilities, 578 million. There is no current problem with the liquidity in this company. The quick ratio is .33 and this is calculated by cash and accounts receivable, 1,501,000+ 1,316,000 divided by current liabilities, 8,644,000.
Being that these types of assets are From significant parts of savings, this is a logical argument. 1982 to 1989, the Dow Jones Average went from 884 to 2,509 which drastically increased capital assets’ values. There was an impressive drop in the unemployment rate during Reagan’s administration as well. 17 million new jobs were created and the unemployment rate fell from 9.7% to 5.5% by the time Reagan’s presidential term ended (Niskanen & Moore 1996). The hours worked by working aged adults grew during