RATIO ANALYSIS illustration 2 to 9

A single ratio by itself is not very meaningful.
Accordingly, in this and the following chapters, we will use various
comparisons to shed light on company performance:

Using these data from
the comparative balance sheet of Rosalez Company, perform horizontal analysis.(If amount and percentage
are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000),
(20%). Round percentages to 0 decimal places, e.g. 12%.)

Using these data from
the comparative balance sheet of Rosalez Company, perform vertical analysis.(Round percentages to 1
decimal place, e.g. 12.5%.)

Vertical analysis
(common-size) percentages for Vallejo Company’s sales, cost of goods sold, and
expenses are listed here.

Did Vallejo’s net income as a percent of sales increase, decrease, or remain
unchanged over the 3-year period? Provide numerical support for your answer.

</p> <p/> <table> <tbody> <tr> <td> <p><strong>Question 4</strong></p> </td> </tr> <tr> <td> <p></p> </td> </tr> </tbody> </table> <p>Horizontal<br /> analysis (trend analysis) percentages for Spartan Company’s sales, cost of<br /> goods sold, and expenses are listed here.</p> <table> <tbody> <tr> <td> <p><strong>Horizontal<br /> Analysis</strong></p> </td> <td/> <td> <p><strong>2012</strong></p> </td> <td/> <td> <p><strong>2011</strong></p> </td> <td/> <td> <p><strong>2010</strong></p> </td> </tr> <tr> <td> <p>Sales</p> </td> <td/> <td> <p>96.2</p> </td> <td> <p>%</p> </td> <td/> <td> <p>104.8</p> </td> <td> <p>%</p> </td> <td/> <td> <p>100.0</p> </td> <td> <p>%</p> </td> </tr> <tr> <td> <p>Cost of goods sold</p> </td> <td/> <td> <p>101.0</p> </td> <td/> <td/> <td> <p>98.0</p> </td> <td/> <td/> <td> <p>100.0</p> </td> <td/> </tr> <tr> <td> <p>Expenses</p> </td> <td/> <td> <p>105.6</p> </td> <td/> <td/> <td> <p>95.4</p> </td> <td/> <td/> <td> <p>100.0</p> </td> <td/> </tr> </tbody> </table> <p> Explain whether Spartan’s net income increased, decreased, or remained<br /> unchanged over the 3-year period.</p> <p><textarea/></p> <p/> <table> <tbody> <tr> <td> <table> <tbody> <tr> <td> <table> <tbody> <tr> <td> <table> <tbody> <tr> <td> <p><strong>Question 5</strong></p> </td> </tr> <tr> <td> <p></p> </td> </tr> </tbody> </table> <p>These selected condensed data are taken from recent balance<br /> sheets of<strong>Bob Evans Farms</strong>(in thousands).</p> <table> <tbody> <tr> <td/> <td/> <td> <p><strong>2009</strong></p> </td> <td/> <td> <p><strong>2008</strong></p> </td> </tr> <tr> <td> <p>Cash</p> </td> <td/> <td> <p>$ 13,606</p> </td> <td/> <td> <p>$ 7,669</p> </td> </tr> <tr> <td> <p>Accounts<br /> receivable</p> </td> <td/> <td> <p>23,045</p> </td> <td/> <td> <p>19,951</p> </td> </tr> <tr> <td> <p>Inventories</p> </td> <td/> <td> <p>31,087</p> </td> <td/> <td> <p>31,345</p> </td> </tr> <tr> <td> <p>Other current<br /> assets</p> </td> <td/> <td> <p>12,522</p> </td> <td/> <td> <p>11,909</p> </td> </tr> <tr> <td> <p>Total current<br /> assets</p> </td> <td/> <td> <p>$ 80,260</p> </td> <td/> <td> <p>$ 70,874</p> </td> </tr> <tr> <td> <p>Total current<br /> liabilities</p> </td> <td/> <td> <p>$245,805</p> </td> <td/> <td> <p>$326,203</p> </td> </tr> <tr> <td/> </tr> </tbody> </table> </td> </tr> </tbody> </table> </td> </tr> </tbody> </table> </td> <td> <p></p> </td> </tr> </tbody> </table> <p/> <p></p> <p/> <table> <tbody> <tr> <td> <p></p> </td> <td> <table> <tbody> <tr> <td> <table> <tbody> <tr> <td> <p><a/></p> <p></p> <p/> <table> <tbody> <tr> <td> <p><strong>(a)</strong></p> </td> </tr> <tr> <td> <p></p> </td> </tr> </tbody> </table> <p>Compute the current ratio for each year.<strong><em>(Round answers to 2 decimal places, e.g. .12 : 1.)</em></strong></p> <table> <tbody> <tr> <td/> <td/> <td> <p><strong>2009</strong></p> </td> <td/> <td> <p><strong>2008</strong></p> </td> </tr> <tr> <td> <p>Current ratio:</p> </td> <td/> <td> <p></p> </td> <td> <p>:1</p> </td> <td/> <td> <p><input/></p> </td> <td> <p>:1</p> </td> </tr> <tr> <td/> <td/> <td/> <td/> <td/> <td/> <td/> </tr> </tbody> </table> </td> </tr> </tbody> </table> </td> </tr> </tbody> </table> </td> </tr> </tbody> </table> <p/> <table> <tbody> <tr> <td> <p><strong>Question 6</strong></p> </td> </tr> <tr> <td> <p></p> </td> </tr> </tbody> </table> <p><strong>Staples, Inc.</strong>is one of the largest<br /> suppliers of office products in the United States. It had net income of $738.7<br /> million and sales of $24,275.5 million in 2009. Its total assets were $13,073.1<br /> million at the beginning of the year and $13,717.3 million at the end of the<br /> year. What is Staples, Inc.’s asset turnover ratio and profit margin ratio?<strong><em>(Round answers to 2<br /> decimal places, e.g. 1.25 or 2.05%.)</em></strong></p> <table> <tbody> <tr> <td> <p>Asset turnover ratio</p> </td> <td/> <td> <p><input/></p> </td> <td> <p> times</p> </td> </tr> <tr> <td> <p>Profit margin ratio</p> </td> <td/> <td> <p><input/></p> </td> <td> <p> %</p> </td> </tr> </tbody> </table> <p/> <table> <tbody> <tr> <td> <p><strong>Question 7</strong></p> </td> </tr> <tr> <td> <p></p> </td> </tr> </tbody> </table> <p>Selected data taken from<br /> a recent year’s financial statements of trading card company<strong>Topps Company, Inc.</strong>are as follows (in<br /> millions).</p> <table> <tbody> <tr> <td> <p>Net sales</p> </td> <td/> <td> <p>$326.7</p> </td> </tr> <tr> <td> <p>Current liabilities,<br /> beginning of year</p> </td> <td/> <td> <p>41.1</p> </td> </tr> <tr> <td> <p>Current liabilities,<br /> end of year</p> </td> <td/> <td> <p>62.4</p> </td> </tr> <tr> <td> <p>Net cash provided by<br /> operating activities</p> </td> <td/> <td> <p>10.4</p> </td> </tr> <tr> <td> <p>Total liabilities,<br /> beginning of year</p> </td> <td/> <td> <p>65.2</p> </td> </tr> <tr> <td> <p>Total liabilities, end<br /> of year</p> </td> <td/> <td> <p>73.2</p> </td> </tr> <tr> <td> <p>Capital expenditures</p> </td> <td/> <td> <p>3.7</p> </td> </tr> <tr> <td> <p>Cash dividends</p> </td> <td/> <td> <p>6.2</p> </td> </tr> </tbody> </table> <p> Compute these ratios: current cash debt coverage ratio, cash debt coverage<br /> ratio, and free cash flow. Provide a brief interpretation of your results.<strong><em>(Round answers to 2<br /> decimal places, e.g. 0.12.)</em></strong></p> <table> <tbody> <tr> <td> <p>Current cash debt<br /> coverage ratio</p> </td> <td/> <td> <p><input/></p> </td> <td> <p> times</p> </td> </tr> <tr> <td> <p>Cash debt coverage<br /> ratio</p> </td> <td/> <td> <p><input/></p> </td> <td> <p> times</p> </td> </tr> <tr> <td> <p>Free Cash Flow</p> </td> <td/> <td> <p>$<input/></p> </td> <td> <p> millions</p> </td> </tr> </tbody> </table> <p/> <p/></pclass>=”msonormal”></div> </div> <div class="woocommerce-Tabs-panel woocommerce-Tabs-panel--reviews panel entry-content wc-tab" id="tab-reviews" role="tabpanel" aria-labelledby="tab-title-reviews"> <div id="reviews" class="woocommerce-Reviews"> <div id="comments"> <h2 class="woocommerce-Reviews-title">Reviews</h2> <p class="woocommerce-noreviews">There are no reviews yet.</p> </div> <div id="review_form_wrapper"> <div id="review_form"> <div id="respond" class="comment-respond"> <span id="reply-title" class="comment-reply-title">Be the first to review “RATIO ANALYSIS illustration 2 to 9” <small><a rel="nofollow" id="cancel-comment-reply-link" href="/product/RATIO-ANALYSIS-illustration-2-to-9/#respond" style="display:none;">Cancel reply</a></small></span><form action="https://courseworkminutes.com/wp-comments-post.php" method="post" id="commentform" class="comment-form" novalidate><p class="comment-notes"><span id="email-notes">Your email address will not be published.</span> <span class="required-field-message" aria-hidden="true">Required fields are marked <span class="required" aria-hidden="true">*</span></span></p><div class="comment-form-rating"><label for="rating">Your rating</label><select name="rating" id="rating" aria-required="true" required> <option value="">Rate…</option> <option value="5">Perfect</option> <option value="4">Good</option> <option value="3">Average</option> <option value="2">Not that bad</option> <option value="1">Very poor</option> </select></div><p class="comment-form-comment"><label for="comment">Your review <span class="required">*</span></label><textarea id="comment" name="comment" cols="45" rows="8" aria-required="true" required>

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