Strategic Financial Analysis

Powerful Essays
Unit 4 - Assignment
Madeline Vicente
Kaplan University
GM506 Strategic Financial Analysis
Professor Dr. Crystal D. Gifford, CFP
January 8, 2013

Chapter 7: Case 7-2 a. For August 31, 2010: 1. What was the gross amount for property and equipment? 2. What was the net amount for property and equipment? 3. What was the gross amount for assets acquired under capital leases? 4. What was the net amount for assets acquired under capital leases? 5. How material are assets acquired under capital leases in relation to total property and equipment? a. How material are capital lease obligations in relation to total debt and revolving lines of credit at August 31, 2010? b. Operating leases: 1. What was the total future minimum lease payments as of August 31, 2010? 2. Using two-thirds of future minimum lease payments representing principal, what would be the estimate for principal at August 31, 2010? 3. How material are operating leases in relation to capital leases?
Chapter 8: Problem 8-5 a. 2011 sales were 122.72% of those in 2010. a. $1,589,150 / $1,294,966 = 122.72% b. 2011 net earnings were 100.80% of those in 2010. a. $138,204 / $137,110 = 100.80% c. Calculate the following for 2011 and 2010: 1. Net Profit Margin: • 2011: $149,260 / $1,589,150 = 9.39% • 2010: $149,760 / $1,294,966 = 11.56% 2. Return on Assets: • 2011: $149,260 / $1,437,636 = 10.38% • 2010: $149,760 / $1,182,110 = 12.67% 3. Total Asset Turnover: • 2011: $1,589,150 / 1,437,636 = 1.11 times • 2010: $1,294,966 / $1,182,110 = 1.10 times 4. DuPont analysis: • 2011: 10.42* = 9.39% x 1.11 • 2010: 10.72* = 11.53% x 1.10 *Rounding causes the difference from the



References: GIBSON, C. (2011). Financial reporting and analysis. (13 ed.). MASON, OHIO: SOUTH-WESTERN CENGAGE LEARNING.

You May Also Find These Documents Helpful

  • Satisfactory Essays

    70’s. The first Zara’s store was opened in 1975, ten years later Inditex was founded as an holding company. From 1996 Inditex started acquiring other companies which are included in the group nowadays. Financial strategy for 2010 Inditex identified its financial strategic as multiformat global growth and it followed this strategy succefully. Infact in 2010 the group opened new stores in three new countries : India, Bulgaria and Kazakhstan. That leaded to increase the number of markets…

    • 299 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Nokia Corporate Finance Julio Santiesteban 589550 November, 2012. Index • • • • • • • • • • • 2 Executive Summary Brief Firm Bio Corporate Governance General Economic Analysis Industry Analysis Competitive Analysis Financial Analysis Value Creation Analysis Conclusions and Recommendations Appendix References Page # 3 Page # 4 Page # 5 Page # 6 Page # 7 Page # 8 Page # 9 Page # 12 Page # 13 Page # 14 Page # 26 2 Executive Summary Nokia has been…

    • 2794 Words
    • 12 Pages
    Powerful Essays
  • Powerful Essays

    objective of this report is to evaluate whether Apple Incorporation has a strong business model to support its operations in the forthcoming few years. Besides that, it aims to evaluate a strategic option that should adopt by the Apple either a strategic business unit (SBU) or a corporate strategy. Internal and external analysis will be performed to analyse the current strategies that have been adapted by the Apple. The reporting currency is USD. Apple was founded by Steve Jobs and Steve Wozniak at 1976…

    • 2836 Words
    • 19 Pages
    Powerful Essays
  • Powerful Essays

    CHAPTER 3 Strategic and Financial Logistics © Portions Argee Logistics and Pearson Education, Inc. publishing as Prentice Hall Learning Objectives • To appreciate how logistics can influence an organization’s strategic financial outcomes • To review basic financial terminology © Pearson Education, Inc. publishing as Prentice Hall 3-2 Learning Objectives • To understand how the Strategic Profit Model can demonstrate the financial impact of logistics activities • To become aware…

    • 1371 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Strategic Financial Management Financial planning is the task of determining how a business will afford to achieve its strategic goals and objectives. Usually, a company creates a Financial Plan immediately after the vision and behavior have been set. The Financial Plan describes each of the activities, resources, equipment and materials that are needed to achieve these objectives, as well as the timeframes involved. The Financial Planning activity involves the following tasks;- * Assess…

    • 1104 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Strategic Financial Issues

    • 3181 Words
    • 13 Pages

    Administration | | | | |Subject name: |Strategic Financial Issues | | | | |Subject facilitator:…

    • 3181 Words
    • 13 Pages
    Powerful Essays
  • Satisfactory Essays

    Strategic Financial Management

    • 31212 Words
    • 125 Pages

    R. A. Hill Strategic Financial Management Download free books at BookBooN.com 2 Strategic Financial Management © 2008 R. A. Hill to be identified as Author Finance & Ventus Publishing ApS ISBN 978-87-7681-425-0 Download free books at BookBooN.com 3 Strategic Financial Management Contents Contents PART ONE: AN INTRODUCTION 1. 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 Finance – An Overview Financial Objectives and Shareholder Wealth Wealth Creation and Value Added The Investment and…

    • 31212 Words
    • 125 Pages
    Satisfactory Essays
  • Powerful Essays

    Strategic Financial Management University of Phoenix Finance for Managerial Decision Making / FIN 554 Professor Greg Garay January 17, 2006 Table of Contents Abstract……………………………………………………………………………………………3 Strategic Financial Management…………………………………………………………………..4 Working Capital Management…………………………………………………………………….4 The Kmart Corporation Debacle…………………………………………………………………..5 Long-Term and Short-Term Strategies…………………………………………………….. 6 Financial Performance…………………………………………………………………………

    • 5844 Words
    • 24 Pages
    Powerful Essays
  • Powerful Essays

    Overview of the objectives of strategic financial management What is financial management? ‘That part of management accounting concerned with setting financial objectives, planning and acquiring the optimum finance to meet them, and seeing that fixed and working capital are effectively managed.' (CIMA). Two fundamental questions: 1. What investments should a firm make? • Long term investments are referred to as ‘capital investment projects' • e.g. build a new supermarket or factory. 2…

    • 2219 Words
    • 9 Pages
    Powerful Essays
  • Satisfactory Essays

    STRATEGIC FINANCIAL MANAGEMENT REVISION 1. Selling Currency Call Options. Mike Suerth sold a call option on Canadian dollars for $.01 per unit. The strike price was $.76, and the spot rate at the time the option was exercised was $.82. Assume Mike did not obtain Canadian dollars until the option was exercised. Also assume that there are 50,000 units in a Canadian dollar option. What was Mike’s net profit on the call option? ANSWER: Premium received per unit = $.01 Amount per unit…

    • 1571 Words
    • 7 Pages
    Satisfactory Essays