Corporate Finance: A Focused Approach (mindtap Course List)
Corporate Finance: A Focused Approach (mindtap Course List)
7th Edition
ISBN: 9781337909747
Author: Michael C. Ehrhardt, Eugene F. Brigham
Publisher: South-Western College Pub
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Chapter 3, Problem 14P
Summary Introduction

To determine: The company J’s forecasted ratios and compare them with industry average data and determine the strength and weakness,

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Some recent financial statements for Smolira Golf Corporation follow. Find the following financial ratios for Smolira Golf Corporation (use year-end figures rather than average values where appropriate): (Enter the profitability ratio answers as a percent rounded to 2 decimal places, e.g., 32.16. Round the remaining answers to 2 decimal places, e.g., 32.16.)  1.  Long-term Solvency Ratios 2020 2021 Total debt ratio times times Debt-equity ratio times times Equity multiplier times times   2.  Times interest earned times Cash coverage ratio times   3.  Profitability Ratios   Profit margin % Return on Assets % Return on Equity %
Toby’s forecasted 2021 financial statements follow, along with some industry average ratios.  Calculate Toby’s 2021 forecasted ratios and fill in the above table.  Calculate the EPS and DPS.  The company has a 40% payout ratio.   Please provide the solutions for the EPS, DPS, Days Sales Outstanding, Fixed Asset Turnover, Total Asset Turnover, Return on Assets, Return on Equity, Total Debt Ratio, Profit Margin on Sales, P/E Ratio.
The Jimenez Corporation’s forecasted 2020 financial statements follow, along with some industry average ratios. Calculate Jimenez’s 2020 forecasted ratios, compare them with the industry average data, and comment briefly on Jimenez’s projected strengths and weaknesses.Jimenez Corporation: Forecasted Balance Sheet as of December 31, 2020 Assets   Cash 72,000 Accounts receivable 439,000 Inventories 894,000      Total current assets 1,405,000 Fixed assets 431,000 Total assets 1,836,000 Liabilities and Equity   Accounts payable 332000 Notes payable 100,000 Accruals 170,000      Total current liabilities 602,000 Long-term debt 404,290 Common stock 575,000 Retained earnings 254,710 Total liabilities and equity 1,836,000 Jimenez Corporation: Forecasted Income Statement for 2020 Sales 4,290,000 Cost of goods sold 3,580,000 Selling, general, and admin expenses 525,456      Earnings before taxes (EBT) 184,544 Interest expense 40,000      Earnings…
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