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Problem 14.8 (LO3) Comparing Bell and Gangway Financial information for Bell and Gangway (two computer manufacturers) follows: Bell Gangway Year Ended Year Ended Year Ended Year Ended (in millions) 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Sales $61,133 $57,420 $8,922 $8,457 Cost of sales 49,462 47,904 7,316 6,951 Gross margin $11,671 $ 9,516 §1,606 $1,506 Inventory $ 1,180 S 660 S 400 s 351 Required a. Compare Bell and Gangway in terms of their percentage changes in sales and gross margin. b. Compare Bell and Gangway in (erms of their gross Margin percentages. ¢. Compare Bell and Gangway in terms of inventory turnover and days' sales in inventory d. . In your opinion, which firm has had better financial performance? Support your answer using your calculations in parts a, b, and c. Problem 12.3 (LO2) Return on Investment Consider the following information for McKinley and Son: 12/31/2020 12/31/2021 Total assets $55,000,000 $62,000,000 Noninterest-bearing current liabilities 1,100,000 1,320,000 Net income 3,300,000 3,400,000 Interest expense 726,000 770,000 Tax rate 20% 20% Required a. Calculate ROI for 2020 and 2021. Round ROI to four decimal places. b. While income has increased in fiscal 2021, is it clear that the company’s performance has improved?
TP Problem 14.6 (L03) Analyzing Financial Ratios and Cash Flows Venture Auto Parts is chain of 40 stores offerng a full ine of auto parts and supplics to consumers and independent auto repair shops. Danny’s Brake and Mufler has over 90 storesin the cities serviced by Venture. Recently, Danny Morton. the founder of Danny s Brake and Muler,was approached by Venture with an ineresting offe. Venture Veants to be the sole supplicr of mufflcrs and brake part to Danny's. In exchange, Venture wil invest | in technology to monitor Danny's inventory levels and make timely deliveries o all locations. Venture ' fasserts thatthie el willea to lower part prices and greater inventory turnover for Danny's. I 0 s e o negation, Dasny's chetsountans, Sass Wikon, was ssigred the task of analyzing the confidential audited financial statements of Venture. As part of her work, Sarah | | calculated the following ratios and obtained Venture's statement o cash flows for iscal 2021 Lo | | Fiscal 2021 Fiscal 2020 | Cartentratio 165 155 Quickratio om 050 I Inventory tarnover 10 s& Debt o cquity 300 23 B ‘Times interest carned 110 20 | Venture Auto Parts Statement of Cash Flows Year Ended December 31,2021 | Cash Provided from Operations | Netcamings s 900000 | Reconclsion ofnet carings o nc cash provided by aperstions: Deprecition and amortization 500000 Increase in receivables (3500000) Increasein merchandie inventories (1100000) | ey s | Increas i income taxes payable 100000 Net cash provided by operations 6100000 Cash flows from investing actvities Purchase of Dundee Stores Purchase of property Net cash used in investing activities Cash flows from financing activities Proceeds from long-term borrowings Net cash provided by financing activities Increase fn cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Required Based on thislimited information, would you recommend that Danny pursue the deal with Venture?
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Problem 11-5A Calculate and analyze ratios (LO11-6)
Cyberdyne Systems and Virtucon are competitors focusing on the latest technologies. Selected financial data is provided below. (Round your answers to 1 decimal place. Enter your answers in millions (i.e., $10,100,000 should be entered as 10.1).)
($ in millions)
Cyberdyne
Virtucon
Net sales
$
43,905
$
7,084
Net income
10,537
1,488
Operating cash flows
15,465
1,600
Total assets, beginning
62,905
16,584
Total assets, ending
64,905
16,284
Required:
1. Calculate the return on assets for both companies.
2. Calculate the cash return on assets for both companies.
3. Calculate the cash flow to sales ratio and the asset turnover ratio for both companies.
4. Which company has the more favorable ratios?
multiple choice
Cyberdyne Systems
Virtucon
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What is the sofrware division's margin on these accounting question?
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A6 please help.....
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Which income statement is better?
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Required Infomation
Problem 12-6A Use ratios to analyze risk and profitability (LO12-3, 12-4)
(The following information applies to the questions displayed below.]
Income statement and balance sheet data for Virtual Gaming Systems are provided below.
VIRTUAL GAMING SYSTEMS
Income Statements
For the years ended December 31
2022
$3,560,e0e
2,490,e0e
1,070, eee
2021
$3,086, e00
1,960,eee
1,126,000
Net sales
Cost of goods sold
Gross profit
Expenses:
Operating expenses
Depreciation expense
Loss on sale of land
Interest expense
Income tax expense
Total expenses
965,e00
40,000
23,000
9,000
1,837,000
%24
868,eee
32,000
9,000
20,000
58,000
987,000
$ 139,e00
Net incomce
33,000
VIRTUAL GAMING SYSTEMS
Balance Sheets
December 31
2022
2821
2020
Assets
Current assets:
Cash
Accounts receivable
$ 216,000
98,000
148, 000
15,000
$196,000
91,000
115,000
13,000
$154,000
70,000
145,e0e
7, 200
Inventory
Prepaid rent
Long-term assets:
Investment in bonds
Land
115,000
115,000
310,000
310,000
(124,000)…
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13 What is the estimated cost of goods sold alnu
14. What is the estimated total selling and administrative expense IUI JUIŲI
15. What is the estimated net operating income for July?
12. What is the estimated FIIL
TOI
лу:
ises
Connect
Gerw
Hill
ACCOUNTING
All applicable exercises are available with McGraw-Hill's Connect® Accounting
EXERCISE 8-1 Schedule of Expected Cash Collections [LO8-2]
Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales 00
in May of each year, as shown in the company's sales budget for the second quarter given belou
April
May
June
Total
Budgeted sales (all on account)
$300,000
$500,000
$200,000 $1,000,000
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Solvency and Profitability Trend Analysis
Addai Company has provided the following comparative information:
20Y8
20Υ7
20Y6
20Υ5
20Y4
Net income
$273,406
$367,976
$631,176
$884,000
$800,000
Interest expense
616,047
572,003
528,165
495,000
440,000
Income tax expense
31,749
53,560
106,720
160,000
200,000
Total assets (ending balance)
4,417,178
4,124,350
3,732,443
3,338,500
2,750,000
Total stockholders' equity (ending balance)
3,706,557
3,433,152
3,065,176
2,434,000
1,550,000
Average total assets
4,270,764
3,928,396
3,535,472
3,044,250
2,475,000
Average total stockholders' equity
3,569,855
3,249,164
2,749,588
1,992,000
1,150,000
You have been asked to evaluate the historical performance of the company over the last five years.
Selected industry ratios have remained relatively steady at the following levels for the last five years:
20Υ4-20Υ8
Return on total assets
28%
Return on stockholders' equity
18%
Times interest earned
2.7
Ratio of liabilities to stockholders' equity
0.4
Required:
1.…
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answer plz
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Solvency and Profitability Trend Analysis
Addai Company has provided the following comparative information:
20Y8
20Y7
20Y6
20Y5
20Y4
Net income
$1,078,700
$929,900
$781,400
$667,900
$566,000
Interest expense
366,800
334,800
289,100
220,400
175,500
Income tax expense
345,184
260,372
218,792
173,654
135,840
Total assets (ending balance)
8,226,651
8,779,231
6,276,721
6,620,869
5,020,826
Total stockholders' equity (ending balance)
2,543,681
3,148,667
2,003,133
2,553,135
1,531,881
Average total assets
8,502,941
7,527,976
6,448,795
5,517,391
4,722,930
Average stockholders' equity
2,846,174
2,575,900
2,278,134
2,042,508
1,808,307
You have been asked to evaluate the historical performance of the company over the last five years.
Selected industry ratios have remained relatively steady at the following levels for the last five years:…
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Solvency and Profitability Trend Analysis
Addai Company has provided the following comparative information:
20Y8
20Y7
20Y6
20Y5
20Y4
Net income
$1,078,700
$929,900
$781,400
$667,900
$566,000
Interest expense
366,800
334,800
289,100
220,400
175,500
Income tax expense
345,184
260,372
218,792
173,654
135,840
Total assets (ending balance)
8,226,651
8,779,231
6,276,721
6,620,869
5,020,826
Total stockholders' equity (ending balance)
2,543,681
3,148,667
2,003,133
2,553,135
1,531,881
Average total assets
8,502,941
7,527,976
6,448,795
5,517,391
4,722,930
Average stockholders' equity
2,846,174
2,575,900
2,278,134
2,042,508
1,808,307
You have been asked to evaluate the historical performance of the company over the last five years.
Selected industry ratios have remained relatively steady at the following levels for the last five years:…
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Use the table for the question(s) below
Name
Gannet
New York Times
McClatchy
Media General 326
Lee Enterprises
Average
Maximum
Minimum
OA $6.52
OB $7.00
Market Enterprise
Capitalization Value
(5 million)
6350
2423
675
OC. $7.00
OD 17 24
267
1192
(5 million)
10,163
3472
3061
1724
14.89
Price/
Book
PIE
7.36
0.73
18.09 2.64
9.76 1.68
0.39
6.55 0.82
11.33
1.25
+60% 112%
-40% 69%
Enterprise
1.31
Valuel
Sales
1.4
1.10
1.40
1.57
1.35
+16%
-18%
Enterprise
7.65
Value/
EBITDA
The table above shows the stock prices and multiples for a number of firms in the newspaper publishing industry. Another newspaper publishing firm (not shown) had sales of $600 million, EBITDA
of $84 million, excess cash of $70 million, $11 milion of debt, and 120 million shares outstanding. If the average enterprise value to sales for comparable businesses is used, which of the following is
the best estimate of the firm's share price?
CIED
5.04
7.21
5.64
6.65
6.44
+22%
-19%
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Solvency and Profitability Trend Analysis
(Part A is the only one I got incorrect, let me know what the correct answers are)
Addai Company has provided the following comparative information:
20Y8
20Y7
20Y6
20Y5
20Y4
Net income
$273,406
$367,976
$631,176
$884,000
$800,000
Interest expense
616,047
572,003
528,165
495,000
440,000
Income tax expense
31,749
53,560
106,720
160,000
200,000
Total assets (ending balance)
4,417,178
4,124,350
3,732,443
3,338,500
2,750,000
Total stockholders’ equity (ending balance)
3,706,557
3,433,152
3,065,176
2,434,000
1,550,000
Average total assets
4,270,764
3,928,396
3,535,472
3,044,250
2,475,000
Average total stockholders' equity
3,569,855
3,249,164
2,749,588
1,992,000
1,150,000
You have been asked to evaluate the historical performance of the company over the last five years.
Selected industry ratios have remained relatively steady at the…
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Hello please provide solution
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Solvency and Profitability Trend Analysis
Addai Company has provided the following comparative information:
20Y8
20Y7
20Y6
20Y5
20Y4
Net income
$273,406
$367,976
$631,176
$884,000
$800,000
Interest expense
616,047
572,003
528,165
495,000
440,000
Income tax expense
31,749
53,560
106,720
160,000
200,000
Total assets (ending balance)
4,417,178
4,124,350
3,732,443
3,338,500
2,750,000
Total stockholders’ equity (ending balance)
3,706,557
3,433,152
3,065,176
2,434,000
1,550,000
Average total assets
4,270,764
3,928,396
3,535,472
3,044,250
2,475,000
Average total stockholders' equity
3,569,855
3,249,164
2,749,588
1,992,000
1,150,000
You have been asked to evaluate the historical performance of the company over the last five years.
Selected industry ratios have remained relatively steady at the following levels for the last five years:
20Y4–20Y8
Return on total assets
28%…
arrow_forward
Solvency and Profitability Trend Analysis
Addai Company has provided the following comparative information:
20Y8
20Y7
20Y6
20Y5
20Y4
Net income
$273,406
$367,976
$631,176
$884,000
$800,000
Interest expense
616,047
572,003
528,165
495,000
440,000
Income tax expense
31,749
53,560
106,720
160,000
200,000
Total assets (ending balance)
4,417,178
4,124,350
3,732,443
3,338,500
2,750,000
Total stockholders’ equity (ending balance)
3,706,557
3,433,152
3,065,176
2,434,000
1,550,000
Average total assets
4,270,764
3,928,396
3,535,472
3,044,250
2,475,000
Average total stockholders' equity
3,569,855
3,249,164
2,749,588
1,992,000
1,150,000
You have been asked to evaluate the historical performance of the company over the last five years.
Selected industry ratios have remained relatively steady at the following levels for the last five years:
20Y4–20Y8
Return on total assets
28%…
arrow_forward
Solvency and Profitability Trend Analysis
Addai Company has provided the following comparative information:
20Y8
20Y7
20Y6
20Y5
20Y4
Net income
$273,406
$367,976
$631,176
$884,000
$800,000
Interest expense
616,047
572,003
528,165
495,000
440,000
Income tax expense
31,749
53,560
106,720
160,000
200,000
Total assets (ending balance)
4,417,178
4,124,350
3,732,443
3,338,500
2,750,000
Total stockholders’ equity (ending balance)
3,706,557
3,433,152
3,065,176
2,434,000
1,550,000
Average total assets
4,270,764
3,928,396
3,535,472
3,044,250
2,475,000
Average total stockholders' equity
3,569,855
3,249,164
2,749,588
1,992,000
1,150,000
You have been asked to evaluate the historical performance of the company over the last five years.
Selected industry ratios have remained relatively steady at the following levels for the last five years:
20Y4–20Y8
Return on total assets
28%…
arrow_forward
National Semiconductor (NSM)Analog Devices Inc. (ADI)Texas Instruments (TXN)
Revenue (billions) $1.64 $2.27 $11.32
Gross margin 64.41% 58.83% 46.80%
Operating margin 25.35% 20.09% 17.67%
Net Income 220.20M 349.78M 1.28B
Earnings per share 0.924 1.225 0.978
Price-to-earnings ratio 15.56 20.48 21.31
The National Semiconductor Corporation (NSM) develops and manufactures semiconductors for electronic systems. The firm's products are used in a variety of applications, including LED lighting, high speed communication, renewable energy, and security and surveillance. The company's chief financial officer (CFO) has a report prepared annually that compares the firm's performance to several key competitors. The CFO has identified Analog Devices (ADI) and Texas Instruments (TXN) as key competitors. Selected information for all three companies is found here
LOADING...
for the twelve-month period ended June 2009. Based on this information, which of the two companies appears to be…
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