Week 3 case study FIN575

2018                2019                                                               2020      Revenue                                   800                   856                899 COGS                                       500 Gross Profit                              300   **Assume that in 2018 $300 of COGS was Variable and $200 was fixed. Assuming revenue growth was driven by 5% volume and 2% price in 2019, what is the gross profit in 2019?  Show your work. Assuming revenue growth in 2020 was driven by 4% volume growth and 1% price increase, what would be gross profit in 2020?  Show your work.

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Calculate the gross profit percentage for 2022 with comparative figures  Discuss 3 ways in which the gross profit margin can be improved   2022 R 2021 R Sales (all credit) 1 435 400 1 685 400 Cost of sales (all credit) (778 700) (825 600)

Year 0 1 2 3 4 Earning and FCF Forecast ($ million)           Sales 433 468 516 547 574.3 Growth Versus Prior Year   0.081 0.103 0.06 0.05 Cost of Goods Sold   -313.56 -345.72 -366.49 -384.78 Gross Profit   154.44 170.28 180.51 189.52 Selling, General, and Administrative   -93.6 -103.2 -109.4 -114.86 Depreciation   -7 -7.5 -9 -9.5 EBIT   53.84 59.58 62.11 65.16 Less: Income Tax at 25%   -13.46 -14.9 -15.53 -16.29 Plus: Depreciation   7 7.5 9 9.5 Less: Capital Expenditures   -7.7 -10 -9.9 -10.4 Less: Increase in NWC   -6.3 -8.64 -5.58 -4.91 Free Cash Flow   33.38 33.55 40.1 43.055   Sora Industries has 61 million outstanding​ shares, $122 million in​ debt, $53 million in​ cash, and the following projected free cash flow for the next four​ years:   . a. Suppose Sora​'s revenue and free cash flow are expected to grow at a 4.2% rate beyond year four. If Sora​'s weighted average cost of capital is 12.0%​, what is the value of Sora stock based on this​…

interpret and analyze the ratios

Question 6 Anita Limited has shared their annual sales revenue over the last 6 financial years from 2015 to 2020.     Year Sales ($ 000) 2015 4500 2016 5100 2017 4900 2018 5400 2019 5670 2020 6000   You are required to; Using linear trend equation forecast the sales revenue of Anita Limited for 2021. ANSWER:     Calculate the forecasted sales difference if you use 3-period weighted moving average designed with the following weights: 2018 (0.1), 2019 (0.3) and 2020(0.6).

Assume the following sales data for a company: 2023 $966000 2022 871000 2021 696800 If 2021 is the base year, what is the percentage increase in sales from 2021 to 2022? А. 25% В. 139% С. 125% D. 39%

Masukh

Finance MCQ

c. Calculate the profitability ratio which includes gross profit margin, operating profit margin, net profit margin, and NOPAT margin

Give the solutuin

Required Information Problem 12-6B 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 The Athletic Attic are provided below. THE ATHLETIC ATTIC Incone Statements For the years ended December 31 2022 $12, see, eee 8, 150,eee 4,350,000 2021 Net sales Cost of goods sold Gross profit Expenses: Operating expenses bepreciation expense Interest expense Income tax expense Total expenses $11,0se,000 6,900,000 4,150,000 1,750,eee 200,000 55,000 58e,e00 2,585,000 $ 1,765,000 1,700,000 200, e00 55,000 500,000 2,455,e00 $ 1,695,000 Net incone THE ATHLETIC ATTIC Balance Sheets December 31 2022 2021 2020 Assets Current assets: Cash Accounts receivable Inventory Supplics Long term assets: Equipnent Less: Accumulated depreciation $ 240,000 1,005,000 1,740,000 145,800 170,000 755,000 1,370,000 115,000 234,000 775,00e 1,048,eee 90,000 1,700,000 (75e,00e) 1,700,000 (S5e,000)…

Problem #15-17                     Year 3 Year 2 Year 1     Make sure you see how the years are charted       Sales trend 128 115 100             Current ratio 2.5 2.3 2.2             Acid-test ratio 0.8 0.9 1.1             Accounts receiveable turnover 9.4 10.6 12.5             Inventory turnover 6.5 7.2 8             Dividend yield 7.10% 6.50% 5.80%             Dividend payout ratio 40.00% 50.00% 60.00%             Return on total assets 12.50% 11.00% 9.50%             Return on equity 14.00% 10.00% 7.80%             Dividends paid per share $1.50 $1.50 $1.50                                 A Is it becoming easier for the company to pay its bills as they come due?           Look at the Acid Test Ratio     B Are customers paying their accounts at least as fast now as they were in Year 1?           Look at the A/R turnover     C Is the total of the accounts receivable increasing, decreasing, or remaining constant?           Look at A/R…