Hello Jacustomer, It appears that your question got cut off. Can you please repost the requirements?
CheckPoint - Analyzing Financial Data and Interpreting Financial Ratios
Part 1 (30 points)
Resource: Ch. 6 of Understanding Financial Statements
Complete Problem 6.6 on p. 232 (Ch. 6).
6.6. Laurel Street, president of Uvalde Manufacturing Inc. is preparing a proposal to present to her board of directors regarding a planned plant expansion that will cost $10 million. At issue is whether the expansion should be financed with debt (a long-term note at First National Bank of Uvalde with an interest rate of 15%) or through the issuance of common stock (200,000 shares at $50 per share).
Uvalde Manufacturing currently has a capital structure of:
Debt (12% interest) 40,000,000
The firm’s most recent income statement is presented next:
Cost of goods sold 65,000,000
Gross profit 35,000,000
Operating expenses 20,000,000
Operating profit 15,000,000
Interest expense 4,800,000
Earnings before tax 10,200,000
Income tax expense (40%) 4,080,000
Net income $ 6,120,000
Earnings per share (800,000 shares) $ 7.65
Laurel Street is aware that financing the expansion with debt will increase risk but could also benefit shareholders through financial leverage. Estimates are that the plant expansion will increase operating profit by 20%.The tax rate is expected to stay at 40%.Assume a 100% dividend payout ratio.
b. Discuss the factors the board should consider in making a decision.
Submit your answers to questions A and B. You must show your work for Question A to receive credit for this question. Your response to Question B should discuss specific factors that the board should consider when making their decision.
This is my first time using this site so I am not sure if I just did this right or not. Just let me know when you get a chance. Thank you
HI MsMichelle, That was perfect! Just give me a bit to get started on this and I will send it to you later in the day.
Thank you...no hurry
You are welcome!
Just let me know when you are done. Like I said I am new here and it keeps telling me that you are awaiting my action.
Do I have to click on the ACCEPT button?
Sorry for not explaining the process sooner. You do not have to click the accept button until you have received your answer. Here is the link to where you can download the answer: Please click here This link will take you to mediafire. You will see a green button that you can click to download the answer. Once you receive the answer then you may click the accept button. If you need any assistance later on please feel free to request me by putting For Brittany in your question...thank you!
It will not download for some reason. I have tried three times now. Is there another way?
I got it finally...thank you. I have an instructor who is out to fail me three weeks before I graduate. I would like to use you again, I just need to borrow some more money as I was just laid off. Do I have to post a question or can I just use this link?
I just realized that there is a part 2 on this assignment - how much more $ would that be?
Hi Msmichelle, Can you please post what information it is you still need.
Part 2 (25 points)
Complete Problem 6.2 on p. 230 (Ch. 6)
6.2. Luna Lighting, a retail firm, has experienced modest sales growth over the past three years but has had difficulty translating the expansion of sales into improved profitability. Using three years’ financial statements, you have developed the following ratio calculations and industry comparisons. Based on this information, suggest possible reasons for Luna’s profitability problems.
2009 2008 2007 2009
Current 2.3X 2.3X 2.2X 2.1X
Average collection period 45 days 46 days 47 days 50 days
Inventory turnover 8.3X 8.2X 8.1X 8.3X
Fixed asset turnover 2.7X 3.0X 3.3X 3.5X
Total asset turnover 1.1X 1.2X 1.3X 1.5X
Debt ratio 50% 50% 50% 54%
Times interest earned 8.1X 8.2X 8.1X 7.2X
Fixed charge coverage 4.0X 4.5X 5.5X 5.1X
Gross profit margin 43% 43% 43% 40%
Operating profit margin 6.3% 7.2% 8.0% 7.5%
Net profit margin 3.5% 4.0% 4.3% 4.2%
Return on assets 3.7% 5.0% 5.7% 6.4%
Return on equity 7.4% 9.9% 11.4% 11.8%
Submit your answer in 200 to 300 words.
Submit both parts of this assignment together as a single attachment using the Assignments tab.
I will get started on this and include it in the original price since its all part of the same problem. I am taking my grandmother to the doctor today though so it will probably be later in the afternoon.
No hurry Brittany.....this isn't actually due until next week. But like I said this teacher has a problem and it failing half of his class and will not help us one bit. So I am jumping ahead to get all my assignments done. I am having some heart issues and even with documentation from my heart doctor I get no help
I have a total of 10 assignments left and get need help with this one and two others.
I am sorry to hear about your condition. You are very smart for getting a head start and it makes it a lot easier for us as well when we are not rushed into getting it done immediately. Allows us to spend more time making it just right :) I hope I can help you get your grade up :)
I hope so too as I would hate to be so close to being done and graduating for this rotten, grumpy man to ruin it for me. Funny how a accounting course has a teacher more focused on your writing than your skill. But I get tired easily now and just too much to do with limited awake time. But my focus and concentration has also been effected by the medication they have me on. I just happen upon this site and I saw your name and your experience...plus my oldest daughter's name is XXXXX XXXXX X knew it was faith....lol.
I know how you feel. I took a statistics class where the instructor cared more about perfecting every small error on my APA format....he even marked me off for capitalizing the H in Running Head....not supposed to be capitalized :) I know that now. But I ended up spending the whole class perfecting my APA instead of learning statistics and its not fair. That is so funny how we came to meet. You have an older daughter with the same name...funny! When I originally saw your question you were listed as Jacustomer but when it changed to MsMichelle I had a flashback of my now 9 year old daughters preschool teacher Ms Michelle...she was the best and your name reminded me of her :)
lol....see FAITH brought us to this point. It just sucks because we the students are paying for these morons to teach us and they are doing their best not to help us. I just don't get it. He marks up my paper and in one case gave me a zero. I got nothing for my work. He hates my postings....I really believe he hates me....lol
Well, just pull through the next couple weeks. Make sure to fill out the survey after the class too and even contact your a.a. if you think its something you need to address because they can have people secretly follow the class to monitor the instructor. Good luck on getting this guy to be "nice" or at the vary least "fair" I have to get going to get my youngest off to preschool now but I will be home after that for a short period of time before heading off to the doctor again. I will get this ready for you and put it in the excel file I already sent so its just one attachment which it sounds like the instructor requires it all on one...Talk to you in a bit!
Great mind think a like I have already contacted my a.a. and alway fill out those survey's. This isn't my first time reporting a teacher unfortunately. I appreciate you taking the time to chat with me and hope your day goes well. I'm off and running myself....I have to go pick up my car who had a run in with a county snowplow that slid through a stop sign. I probably won't get on here until later tonight. But thank you and like I said I have two more assignments that I would like to give you so you can give me an estimate on how much each of those will cost. Thanks Brittany
Glad that you got the process started to weed out the bad instructors and sorry to hear about your car. Here is your answer with both problems on one excel sheet: Please click here Same process to download it as the other one. If you can post the other two assignments I will let you know the cost for them. The accounting problems are a lot less than the big written papers so hopefully we can work something out that is affordable for you. I look forward to talking with you again soon! Thank you, Brittany
Thanks so much for doing the second part as part of the first fee and for all of your help. I will post the other two below. If you need them posted elsewhere just let me know.
6.9. Writing Skills Problem
R.E.C. Inc.’s staff of accountants finished preparing the financial statements for 2007 and will meet next week with the company’s CEO as well as the Director of Investor Relations and representatives from the marketing and art departments to design the current year’s annual report.
Compose a 350- to 500-word response that includes a paragraph about the main ideas of the annual report and an explanation of how you might present these ideas to stakeholders. Be sure to include specific examples from R.E.C. to support the major points of your paper.
Refer to the questions in the Objectives of Analysis section on pp. 192 and 193 (Ch. 6) for guidance on tailoring ideas to present to stakeholders. Submit your assignment as an attachment using the Assignments tab.
Write a 750- to 1,050-word paper evaluating the financial health of a company. Highlight the importance of industry comparisons and trends.
Conduct an industry comparison. In your paper, discuss how your company’s financial performance compares with others in your company’s industry.
Cite all of your sources, and provide website URLs.
Format your paper consistent with APA guidelines.
Post your paper as a Microsoft® Word attachment using the Assignments tab.
Submit a 3- to 5-slide Microsoft® PowerPoint® presentation that highlights the financial data of your company and illustrates the comparisons you wrote about in your paper. This attachment should be submitted using the Assignments tab.
Final Project Overview and Timeline
Final Project Overview
For the final project, you will evaluate the financial health of a company. Write a 750- to 1,050-word paper in APA format and create a PowerPoint® presentation that summarizes your evaluation. Prior to writing the paper, you will need to research your chosen company and conduct an industry comparison to determine how your company’s financial performance compares with others in its industry.
To begin your research, you can refer to the work you completed in the Week One CheckPoint and the Ch. 1 PowerPoint®. As you conduct your research, consider the following factors as a guideline for determining the financial health of your company:
You can also refer to the information and examples in Ch. 6 to complete your evaluation: pp. 194-196 outline various sources you can use in addition to financial statements, pp. 195-196 focus specifically on library resources for help with comparative research, and Figure 6.2 on p. 212 lists the steps of a financial statement analysis.
The following information must be included in your paper:
Use APA formatting guidelines, and submit your paper as a Microsoft® Word attachment to your Assignments tab. Be sure to cite your sources and include Web site URLs where appropriate.
In addition to your paper, create a Microsoft® PowerPoint® presentation consisting of 3 to 5 slides that highlights the financial data of your company and illustrates the comparisons you wrote about in your paper; this presentation should be submitted as an attachment to your Assignments tab.
Unfortunately these two assignment are a lot of writing and those types of assignments are not my speciality. Just let me know what kind of damage this will cost....lol. The last assignment isn't due until 2-10-12. Have a great weekend if I don't talk to you!
I haven't heard back from you on the other two assignments that you wanted to look at to give me a quote....is there a problem? The first assignment is actually due tomorrow not sure if that one is an option now. Please let me know
Sorry for not responding earlier, I had to lay back down.
Yes that works for me! Thank you so much......let me know when to put the money in. I'm up long enough to eat a little something but I will check my email the next time I am up.
Are you still willing to help me?
Do you need anything from me? Here is the describe of the assignment -
Write a 750- to 1,050-word paper evaluating the financial health of a company. Highlight the importance of industry comparisons and trends. Conduct an industry comparison. In your paper, discuss how your company's financial performance compares with others in your company's industry. Cite all of your sources, and provide website URLs. Submit a 3- to 5-slide Microsoft® PowerPoint® presentation that highlights the financial data of your company and illustrates the comparisons in the paper.
Still want to help me?
Nevermind.......I got it!!!!! You are a lifesaver and appreciate everything you have done for me.
Brittany - hey I need to talk to you.....he is asking - Did you use any sources other than the sources listed on your reference page to complete this assignment? Please respond to my question within 48 hours.
This was an original piece - right?