a decrease in inventories is reported as a use of cash. 3. (TCO G) LeCompte Corp. has $312‚900 of assets‚ and it uses only common equity capital (zero debt). Its sales for the last year were $620‚000‚ and its net income after taxes was $24‚655. Stockholders recently voted in a new management team that has promised to lower costs and get the return on equity up to 15%. What profit margin would LeCompte need in order to achieve the 15% ROE‚ holding everything else constant? (Points : 10)
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1-Return on Equity: 2 2-Return on Assets: 3 3-Equity Multiplier: 4 4-Asset Utilization Ratio: 5 5-Tax Ratio: 6 6-Efficiency Ratio: 6 7-Expense Ratio: 7 8-Spread: 8 9-Burden: 9 1-Return on Equity: ROE = Net Income/Average Total Equity YEAR | 2006 | 2007 | 2008 | Net Income | 12700315 | 10084037 | 15614020 | Average Total Equity | 38949430.5 | 50120394.5 | 63172013.5 | | 0.032 | 0.020 | 0.024 | Analysis: This trend of return of asset is similar to return on equity. Its
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Reviews of Generation Debt Generation Debt argues that student loans‚ credit card debt‚ the changing job market‚ and fiscal irresponsibility imperil the future economic prospects of the current generation‚ which is the first American generation not to do better financially than their parents.[2] Some critics of Generation Debt have held that Kamenetz is not critical enough of her own perspective. A writer at Slate wrote‚ "it’s not that the author misdiagnose[s] ills that affect our society. It’s
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The average stock prices for each of the four years shown in Exhibit 1 were as follows: 1998 111/4 = 27.75 1999 163/4 = 40.75 2000 281/2 = 140.5 2001 91/2 = 45.5 a. compute the price/earnings ratio for each year. That is‚ take the stock price shown above and divide by net income per common stock-dilution from exhibit 1. 2001 (3‚417)/$ 0.27 = 12‚655.5 2000 (3‚379)/$0 .55 = 6‚143.63 1999 (3‚282)/$ 0.31 = 10‚587.09 1998 (3‚180)/$ 0.24 = 13‚250.00 b. Why do you think P/E has changed
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College Students and Credit Card Debt Debt has become a real issue in this economy and credit cards play a major role in assisting the problem. Adults are barely responsible enough to budget their expenses and credit card companies are now prying on college students. Just coming out of high school a 17-18 year old does not have the mind capacity to understand finances and the importance of a good credit history. The credit card companies bombard students with enticing offers of credit limits; cash
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LIQUIDITY Liquidity ratios are used to determine a company’s ability to meet its short-term debt obligations. Investors often take a close look at liquidity ratios when performing fundamental analysis on a firm. Since a company that is consistently having trouble meeting its short-term debt is at a higher risk of bankruptcy‚ liquidity ratios are a good measure of whether a company will be able to comfortably continue as a going concern. Working Capital Working capital is the amount by which the
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Financial Ratios The creditable performance calculation for the Valley of the Sun United Way (VSUW) is used to guarantee that their organization will perform at their most likely current ratio‚ long-term solvency ratio‚ contribution ratio‚ and general and management/expense ratio (Goetsch & Davis‚ 2010). The current ratio will enable VSUW to easily see their current expenses that may be aquired and make sure that the organization has enough resources to pay all of their current obligations
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Two terms that are import to sport and closely linked are equality and equity. While being closely linked and sometimes though the mean the same both have different meaning in relation to sport. Firstly the term equality refers to a situation where individuals as well as groups are equal and have the same rights and ability to access opportunities. Secondly the term equity can be studied to determine whether resources are distributed fairly to all members of a society. Both of these terms can be
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Profitability Ratios Return on Capital Employed (ROCE) or Return on Equity (ROE) Numerator – the net profit or income‚ usually taken before tax. Capital Employed or Shareholders Equity - Designed to indicate the effective use of the shareholders capital in the business with respect ot the net profits that they have generated over the period of concern. Net Profit/Income Percentage or Return on Sales Helps to identify the impact of administrative‚ selling and distribution costs on profit
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Development of Equity Introduction Before the Norman Conquest of 1066‚ there was no common law system‚ law was written in codes influenced by Roman law and created by local kings. Shire courts and hundred courts were responsible for law enforcement. The legal system was mainly based on custom and tradition by the intervention of god. The law was often reformed‚ being how the king wanted it to be. The Lord Chancellor‚ who was the chief legal administrator of the kingdom and the king‚ made their
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