Liquidity Ratios 2012 2011 Current Ratio 20‚025/24‚025=0.83 17‚003/27‚075=0.63 Quick Ratio (7‚138+10‚744)/24‚025=0.74 (6‚252+9‚259)/27‚075=0.57 Activity Ratios Receivable Turnover 46‚417/((10‚744+9‚259)/2)=4.6 45‚884/((9‚259+8‚784)/2)=5.1 Inventory Turnover 31‚546/((486+537)/2)=61.7 30‚814/((537+433)/2)=63.5 Profitability Ratios Rate of Return on Assets 7‚003/((139‚576+151‚220)/2)=4.8% 7‚870/((151‚220+156‚985)/2)=5.1% Rate of Return on (7‚003-56)/((78
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in debt at 10% $5‚000 in equity Both Firm A and Firm B- sell 10‚000 units @ 2.50 Variable cost- $1 Fixed Cost- $12‚000 a. What is the operating income (EBIT) for both firms? Firm A EBIT = Revenue - Operating Expenses = $2.50*10‚000 - $1*10000 - $12‚000 = $3‚000 Firm B EBIT = Revenue - Operating Expenses = $2.50*10‚000 - $1*10000 - $12‚000 = $3‚000 b. What are the earnings after interest? The earnings after Interest are: Firm A $3‚000-$0=$3‚000 Firm B $3‚000-10%*$5
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Should Main Line’s maximum and minimum lost profit amounts be revised downward for the following? Why? a. The domestic distribution revenues of $3 million because the deal had not been finalized. Answer: No‚ the amounts should not be revised due to the fact that this amount was an estimate of future cash flows from domestic distribution. Just because the deal had not been finalized does not matter in this instance. b. The $800‚000 of foreign pre-sales because
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What is a static budget? A static budget is a budget that does not change as volume changes. If a company’s annual master budget is a static budget‚ the budget for sales commissions expense will be one amount such as $200‚000 for the year. In other words‚ in a static budget the budgeted amount for sales commissions expense will remain at $200‚000 even if the actual sales during the year are $3 million‚ $4 million or $5 million. In contrast to a company’s static master budget‚ the company’s sales
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(b) P – Simple to set up and maintains control with owner (c) C – Easier to transfer ownership and raise funds‚ no personal liability BE 1-2 1. Trying to determine whether the company complied with tax laws. (E) Internal Revenue Service 2. Trying to determine whether the company can pay its obligations. (C) Creditors 3. Trying to determine whether an advertising proposal will be cost-effective. (B) Marketing Manager 4. Trying to determine whether the company’s net income
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optimistic option‚ a double mold is needed since the total required production exceeds the maximum amount for the single mold. Selecting Decision Criteria • Low additional investment • High revenues with low expenses • Return on Investment • Break Even Analysis Analyzing and evaluating alternatives Break Even = Revenues - Expenses = 0 Single Mold = x(1.82) - x(1.215) - x(0.162) - 63‚975 63‚975 = x(0.443) 144‚413 = Break even units/year Single Mold (pessimistic and expected) = 12‚035 units/month
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suggesting a two-tiered solution for Jurlique: 1. 2. Remain in China and focus on revenue growth. Refine marketing and branding to better communicate the company’s core competencies and values. As a result‚ Jurlique can create sustainable growth leveraging on its current strengths‚ yielding revenue between 200 and 250 MM by 2018. Believe 100% in Nature. Do you? 5 Situational Analysis Source: 6 Key Issues Drive for revenues growth Risk of conflict with parent company Risk of alienating core customers
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setting up of the European Coal & Steel Community (ECSC) in 1951. Its objective was a free market in coal and steel between the founding countries of France‚ West Germany‚ Italy‚ Belgium‚ Luxembourg and the Netherlands. Daniel McAleese became Revenue Commissioner when Seán Mac Cormaic retired in 1950. A native of Lurgan‚ Co. Armagh‚ McAleese was also working in the Custom House on the day it was burned. A noted member of Clonliffe Harriers and the Central Council of the National Athletic &
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extension of the availability of the small appliances increased sales revenue by 3.0%. The increase in revenue prompted The Home Depot to employ the idea for the 2015 Christmas season until March 2016. There was an increase in revenue of 4.0% for 2016. The same model was used for the Christmas season of 2016 to March 2017‚ and again there was an increase in annual sales‚ 5.0%. The Home Depot decided that since sales revenues were increasing each year with the extension of having small appliances
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The extension of the availability of the small appliances increased sales revenue by %. The increase in revenue prompted The Home Depot to employ the idea for the 2015 Christmas season until March 2016. There was an increase in revenue of % for 2016. The same model was used for the Christmas season of 2016 to March 2017‚ and again there was an increase in annual sales‚ %. The Home Depot decided that since sales revenues were increasing each year with the extension of having the small appliance
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