Attachment # 00000726 - baby_cakes_financial_project_data_correc.xlsx
baby_cakes_financial_project_data_correc.xlsx (12.78 KB)
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Baby Cakes International IncStatement of Retained Earningsfor the Years ended December 31, 2008 and 2007Retained Earnings, January 1Net income for yearTotalDividends Paid Preferred Stock Common Stock Total Dividends PaidRetained Earnings December 31Income StatementSalesSales returns Sales AllowancesSales DiscountsNet SalesCost of Goods SoldGross ProfitSelling ExpensesAdministrative ExpensesTotal operating expensesIncome from OperationsOther incomeOther expenseIncome before TaxIncome Tax ExpenseNET INCOMEASSETS December 31, 2008 and 2007Balance SheetCurrent Assets Cash Securities A/R Inventory Prepaids Total Current AssetsLong Term InvestmentsPlant Property and Equipment (net of depreciation)Total AssetsLIABILITIESAccounts PayableLong Term Liabilities Mortgage note payable , 8% due 2011 Bonds Payable, 12% due 2015 Total Long-term liabilitiesTotal LiabilitiesStockholders' EquityPreferred $6 stock, $100 parCommon Stock, $10 parRetained Earnings Total Stockholder's EquityTotal liabilities and stockholders' equity
Financial Analysis problem

Financial Analysis problem

Question # 00004702 Posted By: paul911 Updated on: 12/05/2013 01:46 PM Due on: 12/07/2013
Subject Business Topic General Business Tutorials:
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Financial Statement Analysis provides information that indicates how a company is performing. By comparing financial statements of different years, a manager can make informed decisions about investments, expenditures, and activities that impact revenues.

Directions: Read the chapter in the text titled “Financial Statement Analysis.” Using the comparative financial statements for Baby Cakes International Inc. (see “BabyCakes_Financial_Project_Data.xls” linked in the lesson activities) , complete the following tasks.

Note:The market price of BabyCakes Int’l, Inc. common stock was $20 on December 31, 2008.

Part A: Complete the 19 ratios listed below.

Determine the following measures for 2008:

1. Working Capital

2. Current ratio

3. Quick ratio

4. Accounts receivable turnover

5. Number of days’ sales in receivables

6. Inventory turnover

7. Number of days’ sales in inventory

8. Ratio of fixed assets to long-term liabilities

9. Ratio of liabilities to stockholders’ equity

10.Number of times interest charges earned

11.Number of times preferred dividends earned

12.Ratio of net sales to assets

13.Rate earned on total assets

14.Rate earned on stockholders’ equity

15.Rate earned on common stockholder’s equity

16.Earnings per share on common stock

17.Price-earnings ratio

18.Dividends per share of common stock

19.Dividend yield

Part B: Explain what the results of each ratio indicate about the company.

Part C: Complete a horizontal analysis for the Income Statement, and explain your findings.

Part D: Complete a vertical analysis for the Income Statement, and explain your findings.

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  1. mac123
    Tutorial # 00004501 Posted By: mac123 Posted on: 12/05/2013 01:47 PM
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