investing activities‚ and from financing activities‚ while‚ as measures of operating efficiency‚ its return on assets (ROA)‚ return on sales (ROS)‚ and asset turnover are evaluated. ROA and ROS are used for the DuPont Equation. Economic profit‚ breakeven‚ and capital structure analyses are performed‚ as debt-to-equity ratio and leverage ratio are computed given the ROA and ROE. Lastly‚ some interesting findings are enumerated and explored at the end of the report. Liquidity Analysis In assessing
Premium Income statement Generally Accepted Accounting Principles Financial ratios
Assignment brief | Unit number and title | Unit 2 – Business Resources | Qualification | BTEC Level 3 Certificate‚ Subsidiary Diploma & Diploma in Business | Start date | September 2010 | Deadline | December 2010 | Assessor | L.McNeill | CRITERIA COVERED | | | P4‚ P5‚ P6‚ P7‚ M3‚ M4‚ D2 D3. | | | | | Assignment title | The Role of Financial Resources | Purpose: The aim of this unit is to develop learner knowledge of the range of human‚ physical‚ technological andfinancial
Premium Financial ratio Balance sheet Dog
preliminary income statements for fiscal years ended 2003‚ 2004‚ and 2006 are shown in Table 1. Additional operational statistics are shown in Table 2. To help the Gretchen and Michaela understand what has changed between 2003‚ 2004‚ and 2006 a breakeven analysis (see Table 3) was performed on both sales
Premium Cost Costs Sales
break even? *Fixed costs = $220‚000 (Ship rental and crew) + $65‚000(initial advertisement expense) +$10‚000(administrative expense) = $295000 *Contribution per unit = $1500 -$200 = $1300 *Breakeven point (in units)= 295000/1300 = 226.92 : At least 227 passengers should sign up for Health Cruises by November 20th. 2. Should Health Cruises go ahead with the cruise since 200 people have signed up by November 14th? Why or why not? : Though
Premium Cost Costs Variable cost
passengers – breakeven Break even revenue = 35‚000 x 160 = 5‚600‚000 b. What is the break-even point in number of passenger train cars per month? At 70% load = 90x0.7 = 63 Breakeven per car = 35‚000 / 63 = 556 c. If Springfield Express raises its average passenger fare to $ 190‚ it is estimated that the average load factor will decrease to 60 percent. What will be the monthly break-even point in number of passenger cars? Sale price = 190 190x = 70x + 3‚150‚000 X = 26‚250 breakeven passengers
Premium Variable cost Costs Fixed cost
hotel to breakeven? We calculate the blended rate for each of the wings using the single room and double room rates and occupancy ratios. The daily expense during the season is - Hence to break even we must have occupancy to cover $1‚153.42 in costs on a daily basis. Assuming equal occupancy (x) in East Wing and West Wing we get the equation as (24*30 + 19*50)*x = 1153.42. We get occupancy as 69.1 percent. Hence hotel must rent approximately 56 rooms per night to breakeven 2. The
Premium Depreciation Expense Winter
Case Study 6 Case Study Analysis BOOKWORMS‚ INC. * Case Questions: 1. What sources of information should Klein and Berman use? -Klein and Berman should use primary source of information because they needed personal experience and insights of their respondents‚ specifically students. 2. How should Klein and Berman gather data? -Klein and Berman can gather data through informal interview with their clients if their client is compatible with Klein and Berman’s preferred source.
Premium Stratified sampling Sampling Bachelor's degree
What is the breakeven point? Q5: What assumptions and limitations should managers consider when using CVP analysis? Q6: How are the margin of safety and operating leverage used to assess operational risk? Chapter 3: Cost-Volume-Profit Analysis Eldenburg & Wolcott’s Cost Management‚ 1e Slide # 2 © John Wiley & Sons‚ 2005 Q1‚ Q4: CVP Analysis and the Breakeven Point • CVP analysis looks at the relationship between selling prices‚ sales volumes‚ costs‚ and profits. • The breakeven point (BEP) is
Premium Costs Contribution margin Variable cost
investment and find the breakeven point in where the cash inflows equals the initial investment. Whenever that breakeven point occurs on your timeline‚ that is your payback period. Let us suppose an initial investment for a project is $1.3 million‚ the expected cash inflows for the first two years totals $850‚000‚ and the third year is expected to be $475‚000. $850‚000 subtracted from $1.3 million equals $450‚000 left‚ which needs to be taken out of the $475‚000 to derive at the breakeven point. 450 divided
Premium Net present value Investment Finance
1) GENUINE MOTOR PRODUCTS Revised Pro forma Income Statement For 2007 Sales (1‚000‚000 units @ $30 per unit) Fixed costs Total variable costs (1‚000‚000 units @ $18.80 per unit) Operating Income (EBIT) Interest (10.75% x $12‚000‚000) Earnings before taxes Taxes (35%) Earnings after taxes Shares Earnings per share * Fixed costs include $2‚800‚000 in depreciation $ 30‚000‚000 5‚800‚000 18‚800‚000 5‚400‚000 1‚290‚000 4‚110‚000 1‚438‚500 2‚671‚500 2‚320‚000 1.15 $ $ $ 2) Although there is more
Premium Costs Generally Accepted Accounting Principles Revenue