Strategic Financial Analysis
Unit 4 - Assignment
Madeline Vicente
Kaplan University
GM506 Strategic Financial Analysis
Professor Dr. Crystal D. Gifford, CFP
January 8, 2013
Chapter 7: Case 7-2 a. For August 31, 2010: 1. What was the gross amount for property and equipment? 2. What was the net amount for property and equipment? 3. What was the gross amount for assets acquired under capital leases? 4. What was the net amount for assets acquired under capital leases? 5. How material are assets acquired under capital leases in relation to total property and equipment? a. How material are capital lease obligations in relation to total debt and revolving lines of credit at August 31, 2010? b. Operating leases: 1. What was the total future minimum lease payments as of August 31, 2010? 2. Using two-thirds of future minimum lease payments representing principal, what would be the estimate for principal at August 31, 2010? 3. How material are operating leases in relation to capital leases?
Chapter 8: Problem 8-5 a. 2011 sales were 122.72% of those in 2010. a. $1,589,150 / $1,294,966 = 122.72% b. 2011 net earnings were 100.80% of those in 2010. a. $138,204 / $137,110 = 100.80% c. Calculate the following for 2011 and 2010: 1. Net Profit Margin: • 2011: $149,260 / $1,589,150 = 9.39% • 2010: $149,760 / $1,294,966 = 11.56% 2. Return on Assets: • 2011: $149,260 / $1,437,636 = 10.38% • 2010: $149,760 / $1,182,110 = 12.67% 3. Total Asset Turnover: • 2011: $1,589,150 / 1,437,636 = 1.11 times • 2010: $1,294,966 / $1,182,110 = 1.10 times 4. DuPont analysis: • 2011: 10.42* = 9.39% x 1.11 • 2010: 10.72* = 11.53% x 1.10 *Rounding causes the difference from the
Madeline Vicente
Kaplan University
GM506 Strategic Financial Analysis
Professor Dr. Crystal D. Gifford, CFP
January 8, 2013
Chapter 7: Case 7-2 a. For August 31, 2010: 1. What was the gross amount for property and equipment? 2. What was the net amount for property and equipment? 3. What was the gross amount for assets acquired under capital leases? 4. What was the net amount for assets acquired under capital leases? 5. How material are assets acquired under capital leases in relation to total property and equipment? a. How material are capital lease obligations in relation to total debt and revolving lines of credit at August 31, 2010? b. Operating leases: 1. What was the total future minimum lease payments as of August 31, 2010? 2. Using two-thirds of future minimum lease payments representing principal, what would be the estimate for principal at August 31, 2010? 3. How material are operating leases in relation to capital leases?
Chapter 8: Problem 8-5 a. 2011 sales were 122.72% of those in 2010. a. $1,589,150 / $1,294,966 = 122.72% b. 2011 net earnings were 100.80% of those in 2010. a. $138,204 / $137,110 = 100.80% c. Calculate the following for 2011 and 2010: 1. Net Profit Margin: • 2011: $149,260 / $1,589,150 = 9.39% • 2010: $149,760 / $1,294,966 = 11.56% 2. Return on Assets: • 2011: $149,260 / $1,437,636 = 10.38% • 2010: $149,760 / $1,182,110 = 12.67% 3. Total Asset Turnover: • 2011: $1,589,150 / 1,437,636 = 1.11 times • 2010: $1,294,966 / $1,182,110 = 1.10 times 4. DuPont analysis: • 2011: 10.42* = 9.39% x 1.11 • 2010: 10.72* = 11.53% x 1.10 *Rounding causes the difference from the
References: GIBSON, C. (2011). Financial reporting and analysis. (13 ed.). MASON, OHIO: SOUTH-WESTERN CENGAGE LEARNING.