(0.5 points) An entry recording a sum received, listed on the right-hand side or column of an account. 2. What is a credit score? (0.5 points) Credit scores is a three-digit number generated by a mathematical algorithm using information in your credit report. It's designed to predict risk, specifically, the likelihood that you will become seriously delinquent on your credit obligations in the 24 months after scoring.
Harrod’s Case Study Jeff Rhodes I-E 170 10 April 2014 Professor Gary Vaughan Jeffery S. Rhodes 11 April 2014 Harrod’s Case Study 1) Profit Margin: Year | 2004 | 2005 | 2006 | | $ 193,200 4.52 | $ 243,100 5.42 | $ 200,318 3.99 | | $ 4,269,891 | $ 4,483,360 | $ 5,021,000 | Return on Assets: Year | 2004 | 2005 | 2006 | | $ 193,200 6.09 | $ 243,100 7.23 | $ 200,315 5.71 | | $ 3,190,200 | $ 3,360,660 | $ 3,510,110 | Return on Equity: Year | 2004 | 2005 | 2006 | | $ 193,200 16.04 | $ 243,100 18.55 | $ 200,315 15.02 | | $ 1204600 | $ 1,316,655 | $ 1,325,600 | 2) Year | 2004 | 2005 | 2006 | Profit Margin | 4.52% | 5.42% | 3.99% | ROA | 6.04% | 97.23% | 5.71% | ROE | 16.04% | 18.54% | 15.02% | 3) Proforma Readjusted A) 8.85% B) 23.30% 4) With adjusted net income A) Net Margin, ROA, ROE maintain a positive slope B) When recalculated without $170,000 EL, Company is seeing growth overall C) Harrod’s Sporting Goods actually maintains a positive marginal growth | 2004 | 2005 | Adj. 2006 | Industry Avg. | Return on Assets | 6.09% | 7.23% | 18.85% | 5.10% | Return on Equity | 16.04% | 18.55% | 23.30% | 9.8% | 6) Asset Utilization Ratios: Recievable Turnout: Harrod’s 2006 Industry Avg. sales(credit)/receivable → $5,021,643/$398,200 = 6.31 5.78 Inventory Turnover: Harrod’s 2006 Industry Avg. Sales/inventory → $5,021,643/$1,057,008 = 4.78 3.01 Fixed Assset Turnover: Harrod’s 2006 Industry Avg.
(0.5 points) $2,322.00 b. What is the total of the company's liabilities? (0.5 points) $1,125.00 c. What is the total owner equity? (0.5 points) $1,197.00 4. Calculate the following financial ratios.
– 133 2013 net sales / base year 2011 net sales = 800,000 / 600,000 = 1.33 1.33 x 100% = 133% 5. In analyzing financial statements, horizontal analysis is a- tool 6. Comparative balance sheets - are usually prepared for at least two years 7. Assume the following cost of goods sold data for a company: 2013 $1,500,000 2012 1,200,000 2011 1,000,000 If 2011 is the base year, what is the percentage increase in cost of goods sold from 2011 to 2013? – 50% = New - Old Old 100 8.
$1,500,000/$12,000,000 = 0.125 or 12.5% Each dollar of revenue produces 12.5% of net income or profit. Cash flow= cash generated during the year The rough estimation of cash flow = net income + non -cash expenses, in this case, $1,500,000 + $1,500,000 = 3,000,000 C. Now, suppose the company changed its depreciation calculation procedures (still within GAAP) such that its depreciation expense doubled. How would this change affect Brandywine’s net income, total profit margin, and cash flow? Brandywine Homecare Income statement with double depreciation expense: Month ending December 31, 2007 Revenue $12,000,000 Total revenue $12,000,000 Expenses: Depreciation $ 1,500,000x2= 3,000,000 Other 12,000,000 x 75/100 = 9,000,000 Total expenses= Depreciation + Other expenses= 1,500,000x2+ 9,000,000= $12,000,000 Total revenue – total expenses = Net income or Profit - 12,000,000- 12,000,000= 0 What
Accounting can consist of guesswork up to some extent. Guesswork in accounting includes assumptions and estimations. Assumptions are said to be the foundation of accounting and this is because some items in accounting cannot be calculated precisely. Therefore, it becomes necessary for the use of estimation in such cases. For instance, valuation of assets must be executed over the years as the value of it may not be the same every year.
We miss essential information like the interest rate and maturity of the debt to calculate the market value of debt. From the book value of debt and the interest expenses over 2007 we estimate the cost of debt: 2,26/43,08 = 5,25 %. This is 0.7% more than the risk free rate. This seems reasonable when considering the low leverage ratio of the firm and high cash reserves of the firm, on the other side the interest coverage ratio of Tottenham of 1,24 is pretty low. We assume that the amount of debt has been constant over 2007.
DFA small company value fund has a coefficient of 0.84 for SMB factor; on the contrary, DFA large company value fund has a negative coefficient for SMB, which is -0.079. It is the same for DFA 6-20 mutual fund and DFA nine-ten small company fund. HML factor indicates high risk exposure for high B/M stock. Coefficient of HML suggests the relationship between the fund return and high B/M stock. Coefficients of momentum factor UMD are negative for all these five funds.
Two accounts that had been written off as uncollectible in 2005 were collected in 2006. One account for $2,108 was $1,566 was made by the Hollowell Company on another account that originally had amounted to $2,486. The controller would be paid in full because reliable reports were circulating that the trustee in bankruptcy for the Hollowell Company the dollar. 5. The Allowance for Bad Debts was adjusted to equal 3% of the balance in Accounts Receivable at the end of the yea Questions: 1.
Comparing the gross sales forecast to actual sales, this results in a loss of $309,445 in 2006 and $420,445 in 2007. [pic] Now, use the data in Table 1 and regression analysis, to compute the loss for Kwik Lube stations during the last two years. How accurate can results claim to be? |(untitled) Summary | |Measure |Value | |Error Measures | | |Bias (Mean Error) |0 | |MAD (Mean Absolute Deviation) |29611.49 | |MSE (Mean Squared Error) |1284291000 | |Standard Error (denom=n-2-0=6) |41381.01 | |MAPE (Mean Absolute Percent Error) |.03 | |Regression line | | |Dpndnt var, Y = 89527.02 | | |+ 2.78 * X1 | | |Statistics | | |Correlation coefficient |.99 | |Coefficient of determination (r^2) |.97 | Was it worth $30,000 to perform the marketing research that obtained the data in Table 1? If you were trying to determine if the return on the investment of $30,000 was worth the monetary loss alone, the answer is no.