Mangeria Analysys 6

busn602homeworktemplateweek6april2014_1.xlsx

Instructions

			Instructions
NAME:
	To complete the homework assignments in the templates provided:
	1.	The question is provided for each problem. You may need to refer to your textbook for additional information in a few cases.
	2.	You will enter the required information into the shaded cells.
	3.	The cells are coded:
		a) T requires a text answer. Essay questions require references; use the textbook.
		b) C requires a calculation, using Excel formulas or functions. You cannot perform the operation on a calculator and then type the answer in the cell. You will enter the calculation in the cell, and only the final answer will show in the cell. I will be able to review your calculation and correct, if necessary.
		c) F requires a number only. In some problems, a “Step 1” is added to help you solve the problem.
		d) Formula requires a written formula, not the numbers. For example, the rate of return = [(1 + nominal)/ (1+inflation)]-1, or D (debt) + E (equity) = V (value).
	4.	Name your assignment file as "LastnameFirstinitial-BUSN602-Week#", and submit by midnight ET, Day 7.

	Discussion Question 14-1
	List some reasons why financial statement analysis is conducted. Identify some of the participants that analyze firms’ financial statements.
	Answer:
	T

	Discussion Question 14-3
	Identify the types of ratios that are used to analyze a firm’s financial performance based on its income statements and balance sheets.
	Answer:
	T

Problem14-11

Using the information in Tables 14.1 and 14.2, compute the financial ratios we discussed in this chapter for Walgreens, using the 2010 and 2009 data.
Answers:
	Enter the answers in blue shaded cells
		Ratio (text)	2010	2009
	Current ratio	T	C	C
	Quick Ratio	T	C	C
	Average Payment Period	T	C	C
	Total Asset Turnover	T	C	C
	Fixed Asset Turnover	T	C	C
	Average Collection Period	T	C	C
	Inventory Turnover	T	C	C
	Total Debt to Total Assets	T	C	C
	Equity Multiplier	T	C	C
	Interest Coverage	T	C	C
	Operating Profit Margin	T	C	C
	Net Profit Margin	T	C	C
	Operating Return on Assets	T	C	C
	Return on Assets	T	C	C
	Return on Equity	T	C	C

	Discussion Question 15-1
	What is meant by working capital?
	Answer:
	T

	Discussion Question 15-31
	What risks arise when a firm lowers its credit standards to try to increase sales volume?
	Answer:
	T

	Discussion Question 15-33
	How is the financial manager involved in the management of inventories?
	Answer:
	T

Problem 15-4

Inventories for Robinson Company are $500,000 for 2014 and $350,000 for 2013. Suppose the Robinson Company had a cost of goods sold of $1,000,000 in 2013 and $1,200,000 in 2014.
a. Calculate the inventory turnover for each year. Comment on your findings. b. What would have been the amount of inventories in 2014 if the 2013 turnover ratio had been maintained?
Answers:
	Enter the answers in blue shaded cells
		Formula	2013	2014
a.	Inventory turnover	T	C	C
	Comment	T
		Formula	2014 Inventories
b.	Inventories	T	C		Tip: p. 419