Questions from Financial Management

Q: Billy’s Crystal Stores Inc. has assets of $5,960

Billy’s Crystal Stores Inc. has assets of $5,960,000 and turns over its assets 1.9 times per year. Return on assets is 8 percent. What is the firm’s profit margin (return on sales)?

Q: Dr. Zhivàgo Diagnostics Corp. income statements for 20X1 are as

Dr. Zhivàgo Diagnostics Corp. income statements for 20X1 are as follows: a. Compute the profit margin for 20X1. b. Assume that in 20X2, sales increase by 10 percent and cost of goods so...

Q: The Haines Corp. shows the following financial data for 20X1 and

The Haines Corp. shows the following financial data for 20X1 and 20X2. For each year, compute the following and indicate whether it is increasing or decreasing profitability in 20X2 as indicated by...

Q: Easter Egg and Poultry Company has $2,000,000

Easter Egg and Poultry Company has $2,000,000 in assets and $1,400,000 of debt. It reports net income of $200,000. a. What is the firm’s return on assets? b. What is its return on stockholders’ equity...

Q: Network Communications has total assets of $1,500,000

Network Communications has total assets of $1,500,000 and current assets of $612,000. It turns over its fixed assets three times a year. It has $319,000 of debt. Its return on sales is 8 percent. What...

Q: Eli Lilly is very excited because sales for his nursery and plant

Eli Lilly is very excited because sales for his nursery and plant company are expected to double from $600,000 to $1,200,000 next year. Eli notes that net assets (Assets — Liabilities) will remain at...

Q: Delsing Plumbing Company has beginning inventory of 16,500 units,

Delsing Plumbing Company has beginning inventory of 16,500 units, will sell 55,000 units for the month, and desires to reduce ending inventory to 25 percent of beginning inventory. How many units shou...

Q: On December 31 of last year, Wolfson Corporation had an inventory

On December 31 of last year, Wolfson Corporation had an inventory of 450 units of its product, which cost $22 per unit to produce. During January, the company produced 850 units at a cost of $25 per u...

Q: What is the difference between a bond agreement and a bond indenture

What is the difference between a bond agreement and a bond indenture?

Q: At the end of January, Higgins Data Systems had an inventory

At the end of January, Higgins Data Systems had an inventory of 650 units, which cost $16 per unit to produce. During February, the company produced 950 units at a cost of $19 per unit. If the firm so...