Problem 1
Though his sales are increasing from year to year, Elmer Fudd, President of Fudd Enterprises, is concerned because his competitors are stealing some of his prime customers (he is, in effect, beginning to lose his share of the market). Puzzled by these developments, he has hired you to analyze his financials. He has given to you the following key financial items from his annual statements:
|
2012 |
2011 |
2010 |
2009 |
2008 |
|||||||||||||||
|
Sales |
$29 |
8,000 |
$256,000 |
$213,000 |
$165,000 |
$135,000 |
|||||||||||||
|
Cost of Goods Sold |
1 |
25,000 |
108,000 |
89,000 |
69,000 |
57,000 |
|||||||||||||
|
Ending Gross Receivables |
26,000 |
23,000 |
|||||||||||||||||
|
Ending Inventory |
2 |
4,000 |
18,000 |
12,000 |
|||||||||||||||
|
Total Current Assets |
52,000 |
46,000 |
39,000 |
37,000 |
32,000 |
||||||||||||||
|
Total Current Liabilities |
$
24,000 |
$23,000 |
$22,000 |
$21,000 |
$18,000 |
||||||||||||||
|
Current Ratio |
|||||||||||||||||||
|
Quick Ratio |
|||||||||||||||||||
|
DSR |
|||||||||||||||||||
|
DSI |
Problem 2
General information applicable to Phoenix Company is provided below.
|
Ind. Average |
||||||
|
Debt Ratio (Book-based) |
72% |
69% |
66% |
60% |
58% |
64% |
|
TIE |
5.5 |
4.0 |
4.9 |
5.8 |
7.2 |
7.0 |
|
Bond Rating (S&P) |
BBB |
BB+ |
BBB+ |
AA- |
||
|
Debt to Equity ratio |
First of all, calculate the Debt-to-Equity ratio for Phoenix Company for all five years and also calculate the Debt-to-Equity ratio applicable to Phoenix’s industry sector (Industry Average) (5 points). Secondly, comment on the long-term debt-paying ability of this company based on the information provided. Identify items that give you concerns about this company and its financial strengths/weaknesses.
Problem 3
Five years of sales information pertaining to Yummy Yogurts & Crazy Coffees, a retailer that exclusively sells frozen yogurt drinks and specialty coffees in Southern California is presented below.
|
Actual Sales: |
$275,000 |
$262,000 |
$242,000 |
$220,000 |
$189,000 |
From the BLS Web site, I have retrieved information regarding inflation over this five-year period, specifically as it relates to specialty/novelty drinks in the Southern California market (I have made up these figures so don’t bother to look for them). The December index figures are presented below for the past six years.
|
2007 |
||||||
|
December Index Figure: |
269.6 |
256.1 |
237.7 |
220.1 |
197.7 |
176.7 |
Using this information, please perform the following:
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Achiever Papers is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Dissertation Writing Service Works
First, you will need to complete an order form. It's not difficult but, if anything is unclear, you may always chat with us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download