1. The following three one year “discount” loans are available to you:

Loan A: $120,000 at a 7 percent discount rate
Loan B: $110,000 at a 6 percent discount rate
Loan C: $130,000 at a 6.5 percent discount rate

a. Determine the dollar amount of interest you would pay on each loan and indicate the amount of net proceeds each loan would provide. Which loan would provide you with the most upfront money when the loan takes place?

Loan A:

120,000 – 8400 = 111,600.

Loan B:
110,000 - 6600 =103,400

Loan C:
130,000 – 8450 = 121,550

The loan that would give more upfront is Loan C.

b. Calculate the percent interest rate or effective cots of each loan. Which one ha the lowest cost?

Loan A:
8400 X 100 = 7.53%

Loan B:
6600 X 100 = 6.38%

Loan C:
8450 X100 =6.95%

The loan that would be at lowest cost is Loan B.

2. ATM Banc has the following liabilities and equity categories: Deposits$9 Million
Other Liabilities $4 Million
Owner’s Capital ?
Total Liabilities and capital ?

a. What would be the bank’s total liabilities and capital if owners’ capital were half the size of other liabilities? Deposits – 9 million
Other Liabilities – 4 million
Owners’ Capital - 2 million
TOTAL LIABILITIES AND CAPITAL = 15 Million

b. If total liabilities and capital were $15.5 million, what would be the amount of the owners’ capital? Deposits – 9 million
Other Liabilities – 4 million
OWNERS CAPITAL – 2.5 million
Total Liabilities and Capital – 15. 5 Million

c. If the total liabilities and capital were $14 million, and $1 million of deposits were withdrawn from the bank, what would be the amount of the owners’ capital? Deposits – 9 million – 1 million = 8 million

Other liabilities = 4 million
OWNERS CAPITAL – 2 Million
Total Liabilities and Capital – 14 million

...Report
Introduction:
Any successful business the owners is always calculate the performance of the company, comparing it with the company's historical figures, with its industry competitors, and even with successful businesses from other industries. To complete a thorough examination of your company's effectiveness, however, I will calculate the statement of financial performance and statement of financial position, so I need to look at more than just easily attainable numbers like sales, profits, and total assets. I must be able to read between the lines of the financial statements and make the seemingly inconsequential numbers accessible and comprehensible.
This very big data overload could seem astounding. Luckily, many well-tested ratios out there make the task a bit less daunting. Comparative ratio analysis helps you identify and quantify of the desert hotel company's strengths and weaknesses, evaluate its financial position, and understand the risks you may be taking.
As with any other form of analysis, comparative ratio techniques are not definitive. Numerous off the balance sheet and income statement factors can play a role in the success or failure of a company. This discussion contains descriptions and examples of the eight major types of ratios used in financial analysis: Profitability, Liquidity, short-term liquidity and Long-Term Analysis
Ratios are highly...

...ANALYSIS: 3
RATIO ANALYSIS: 3
FAUJI CEMENT BALANCE SHEET AND PROFIT AND LOSS ACCOUNT 4
RATIO ANALYSIS: 9
INTRODUCTION
MANAGERIAL FINANCE:
• Managerial finance is concerned with the duties of the financial manager in the business firm.
• The financial manager actively manages the financial affairs of any type of business, whether private or public, large or small, profit-seeking or not-for-profit.
• They are also more involved in developing corporate strategy and improving the firm’s competitive position.
FINANCIAL STATEMENTS ANALYSIS:
• Ratio analysis involves methods of calculating and interpreting financial ratios to assess a firm’s financial condition and performance.
• It is of interest to shareholders, creditors, and the firm’s own management.
RATIO ANALYSIS:
In the following assignment two companies from the Cement Industries which are registered in the Lahore Stock Exchange (LSE) is being taken for the ratio analysis. At first the financial ratios of the each company is calculated and is compared with the previous year of the respected company financial ratios data (2008-2009) while in second step the ratios for the year 2009 of the both company is compared and is then analyzed that which company is in better position than the other.
FAUJI...

...LIQUIDITY
Liquidity ratios are used to determine a company’s ability to meet its short-term debt obligations. Investors often take a close look at liquidity ratios when performing fundamental analysis on a firm. Since a company that is consistently having trouble meeting its short-term debt is at a higher risk of bankruptcy, liquidity ratios are a good measure of whether a company will be able to comfortably continue as a going concern.
Working Capital
Working capital is the amount by which the value of a company's current assets exceeds its current liabilities. Also called net working capital. Sometimes the term "working capital" is used as synonym for "current assets" but more frequently as "net working capital", i.e. the amount of current assets that is in excess of current liabilities. Working capital is frequently used to measure a firm's ability to meet current obligations. It measures how much in liquid assets a company has available to build its business.
Working capital is a common measure of a company's liquidity, efficiency, and overall health.
Decisions relating to working capital and short term financing are referred to as working capital management. These involve managing the relationship between an entity's short-term assets (inventories, accounts receivable, cash) and its short-term liabilities.
Working capital (net working capital) = Current Assets - Current Liabilities
2008
2009...

...
Ratio Analysis University of Phoenix
HCS/571 Finance Resource Management Sept 24, 2013Rosetta Stringfellow, MBA, BSRatio Analysis Ratio analysis is a widely used managerial tool that compares one number with another to gain insights that would not arise from looking at either of the numbers separately. Ratio analysis is used to examine and interpret the relationship between two numbers on a financial statement. This is done so that the managers of a facility can determine whether or not the organization needs to change any of their financial variables in order to remain competitive in their market. The ratio analysis converts numbers into meaningful comparisons which managers can use to compare their facilities with others within the same market. The management team can also use the ratio analysis to see how the facility is performing from year to year. In sum, ratio analysis shows the strengths and weaknesses of a health care facility (Finkler, Kovner, & Jones, 2007).
The financial data for this paper are from the financial statements of Norwalk Hospital located in Fairfield County, Connecticut. Common size ratios allow comparisons between comparable health care organizations. It is important to see how the facility compares to others in the region of the market place (Finkler et al., 2007)....

...Faom Statutory Combined Ratio | 12120 | 3587 | (1921) | (21019) | (8409) | 8100 | 7563 |
Unrealized Capital Gains | (5848) | 21334 | (12387) | (54738) | 24042 | 15015 | (3674) |
| | | | | | | |
| 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 |
1.Industry Statutory Combined Ratio | 1.011531 | 0.922324 | 0.925584 | 1.049708 | 1.004400 | 1.018545 | 1.075980 |
2.Industry Trade Basis Combined Ratio | 1.006834 | 0.917629 | 0.922686 | 1.047775 | 1.004685 | 1.017492 | 1.075921 |
3.OR on NII | 0.886679 | 0.794914 | 0.800237 | 0.926923 | 0.887271 | 0.902515 | 0.960133 |
4.OR on NII+RCG | 0.858605 | 0.786859 | 0.804478 | 0.974169 | 0.906798 | 0.883604 | 0.943081 |
5.OR on NII+RCG+UCG | 0.872151 | 0.738951 | 0.831825 | 1.097209 | 0.850969 | 0.848547 | 0.951365 |
QUIZ 4 – TEAM 1
Q 6) Graph each of the ratios above in a single chart.
Q 7) Which of the above measure most accurately depicts the profitability of the insurance industry over the last 5 years?
Ans 7) Combined ratio is a partial measure of profitability used by an insurance company to indicate how well it is performing in its daily operations. A ratio below 100% indicates that the company is making underwriting profit while a ratio above 100% means that it is...

...Ratio and Proportion
• If 2 numbers are in ratio a: b then consider them as ax and bx (where x is the proportionality constant) and apply ax and bx in the given condition of the problem to proceed for answer
• Ratio can be applied between 2 units if and only if the same physical quantity is compared
• Length : length is correct
• Length : density is wrong
• Ratio can be made only after the units are compared in the same unit
• If two lengths are 1 mile and 1 km respectively then ratio 1:1 is incorrect.
• It should be 1.6:1 = 16:10 = 8:5 being converted to km
• Ratio of a to b = a : b = a / b where a and b are the terms of ratio wherein a = first term = antecedent and b = second term = consequent
• In a problem, to maintain the same ratio, if the antecedent is multiplied / divided by an integer / fraction then the consequent must be multiplied / divided by the same integer / fraction
• Ratio is expressed in lowest terms.
• As every number corresponds to its part in ratio, it is involved so the number of unit differences in the ratio, expressed in lowest terms, corresponds to the actual difference of true figures. Hence similar is with the aggregate values.
• If a number is to be proportionately changed in a given ratio then the antecedent refers to the given number. Hence find the...

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P5-Perform ratio analysis to measure the profitability, liquidity and efficiency of a given organisation.
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M2-Analyse the performance of a business using suitable ratios.
In this task I am going to perform ratio analysis and measure the profitability and efficiency of SIGNature and analyse the performance of theirbusiness using suitable ratios
Profitability Ratios -Gross profit margin
Gross profit X 100 = 298935 X 100 = 57.30%
Sales 521700
Every £1 of sales the percentage is the amount of pence that becomes the gross profit. This will be 57.3p in gross profit. This method to measure performance ability is not always reliable as the calculation for NP margin, as a business will not just have stock and materials to take in.
Net profit (after appropriations) X 100 = 44160 =8.46%
Sales 521700
Net profit margin
A business would use every £1 of sale to re-invest or after appropriations. This figure is neither good nor bad for the SIGNature ltd. Im not sure about this figure, with th0d
Returned on capital employed
Net profit (after appropriations) X 100 = 44160 = 29.61%
Capital employed 149160
This figure shows you...

...Ratio, Vertical, and Horizontal Analyses
Regina Stewart
XACC/280
February 3, 2012
Jose Rodriguez
Ratio, Vertical, and Horizontal Analyses
A detailed examination of the tools used in financial analysis, in addition to their various functions, is provided within this paper. The current ratio and calculations on the questions are provided herein.
A variety of tools are used to assess the importance of financial data. Frequently used tools of financial statement analysis consist of horizontal analysis, vertical analysis and ratio analysis. These techniques assist in the evaluation of financial statements providing information regarding the financial condition of a business.
Evaluating the data of financial statements over a period of time, is considered horizontal analysis and is primarily used in intracompany comparisons with the purpose of determining an increase or decrease over a period of time.
Vertical analysis expresses individual items in the financial statement in the percentage format of the base amount and is used in comparisons of both intracompany and intercompany. Vertical analysis reflects the comparative size of each category in the balance sheet along with the percentage change in the individual asset, liability, and stockholders’ equity items.
Ratio analysis articulates the relationship between selected items of financial statement data and is used in...