5. Below is actual price and dividend data for three companies for each of seven months. с Time 1 2 3 4 5 6 7 Price 57 3/4 59 7/8 59 3/8 55 1/2 56 1/4 59 60 1/4 A Dividend 0.725 0.725 Price 333 368 368 1/2 382 1/4 386 397 3/4 392 B Dividend 1.35 1.35 Price 106 3/4 108 1/4 124 122 1/4 135 1/2 141 3/4 165 3/4 Dividend 0.40 0.42 a. Compute the rate of return for each company for each month b. Compute the average rate of return for each company c. Compute the standard deviation of the rate of return for each company Compute the correlation coefficient between all possible pairs of securities e. Compute the average return and standard deviation for the following portfolios d. a. 2A + 2B b. 12 A + ½ C c. 2 B+%2C d. 1/3 A + 1/3 B + 1/3 C

5. Below is actual price and dividend data for three companies for each of seven months. с Time 1 2 3 4 5 6 7 Price 57 3/4 59 7/8 59 3/8 55 1/2 56 1/4 59 60 1/4 A Dividend 0.725 0.725 Price 333 368 368 1/2 382 1/4 386 397 3/4 392 B Dividend 1.35 1.35 Price 106 3/4 108 1/4 124 122 1/4 135 1/2 141 3/4 165 3/4 Dividend 0.40 0.42 a. Compute the rate of return for each company for each month b. Compute the average rate of return for each company c. Compute the standard deviation of the rate of return for each company Compute the correlation coefficient between all possible pairs of securities e. Compute the average return and standard deviation for the following portfolios d. a. 2A + 2B b. 12 A + ½ C c. 2 B+%2C d. 1/3 A + 1/3 B + 1/3 C

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 40E: Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for...

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Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: 1. Calculate the return on sales. (Note: Round the percent to two decimal places.) 2. CONCEPTUAL CONNECTION Briefly explain the meaning of the return on sales ratio, and comment on whether Juroes return on sales ratio appears appropriate.
Assume the following sales data for a company: Current year $896,005 Preceding year 607,844 What is the percentage increase in sales from the preceding year to the current year (rounded to one decimal place)? Oa. 47.4% Ob. 15.3% Oc. 32.2% Od. 79.6%
Assume the following sales data for a company:Current year$832,402 Preceding year608,082What is the percentage increase in sales from the preceding year to the current year? a.136.89% b.36.89% c.73.05% d.26.95% The relationship of $242,729 to $104,267, expressed as a ratio, is a.0.8 b.2.3 c.0.4 d.0.7
7.The following data were available for ABC Corp at Dec 31, 20X2:Net purchases P345,000Inventory, Dec 31 P11,000Gross Sales, 446,250Sales returns, P10,000Gross profit is 25% of costHow much was the cost of sales during the year? 109,063 111,563 349,000 357,000
1. Prepare a comparative income statement for the two-year period, presenting an analysis of each item in relationship to sales for each of the years. Round to one decimal place. Enter all amounts as positive numbers. Fielder Industries Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 Amount 20Y2 Percent 20Y1 Amount 20Y1 Percent Sales $1,300,000 fill in the blank bcf5f3fbd02f054_1% $1,180,000 fill in the blank bcf5f3fbd02f054_2% Cost of goods sold 682,500 fill in the blank bcf5f3fbd02f054_3% 613,600 fill in the blank bcf5f3fbd02f054_4% Gross profit $617,500 fill in the blank bcf5f3fbd02f054_5% $566,400 fill in the blank bcf5f3fbd02f054_6% Selling expenses $260,000 fill in the blank bcf5f3fbd02f054_7% $188,800 fill in the blank bcf5f3fbd02f054_8% Administrative expenses 169,000 fill in the blank bcf5f3fbd02f054_9% 177,000 fill in the blank bcf5f3fbd02f054_10% Total operating expenses $429,000 fill in the blank…
Assume the following sales data for a company: Current year $1,025,000 Preceding year 820,000 What is the percentage increase in sales from the preceding year to the current year? Oa. 125% Ob. 25% Oc. 75% Od. 100%
Assume the following sales data for a company: Current year $770,668 Preceding year 635,551 What is the percentage increase in sales from the preceding year to the current year? a.121.26% b.17.53% c.82.47% d.21.26%
Compute for the price-earnings ratio if the earnings per share are Php 5.50: Market Value per share P.E Ratio 1 27.500 2 30.250 3 22.000 4 17.875 5 28.875
Horizontal Analysis of Income Statement For 20Y2, McDade Company reported a decline in net income. At the end of the year, T. Burrows, the president, is presented with the following condensed comparative income statement: McDade Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Υ2 20Υ1 Sales $829,639 $693,000 Cost of merchandise sold 616,000 440,000 Gross profit $213,639 $253,000 Selling expenses $87,000 $58,000 Administrative expenses 50,320 37,000 Total operating expenses $137,320 $95,000 Income from operations $76,319 $158,000 Other revenue 3,634 2,900 Income before income tax expense $79,953 $160,900 Income tax expense 22,400 48,300 Net income $57,553 $112,600 Required:
The financial statements for Royale and Cavalier companies are summarized here: Cavalier Royale Company Company Balance Sheet $ 31,000 61,000 122,000 562,000 146,000 $ 51,000 22,000 37,000 172,000 52,000 Cash Accounts Receivable, Net Inventory Equipment, Net Other Assets $ 922,000 $ 334,000 $ 27,000 67,000 216,000 10,000 14,000 $ 334,000 Total Assets $ 132,000 202,000 486,000 56,000 Current Liabilities Notes Payable (long-term) Common Stock (par $20) Additional Paid-In Capital Retained Earnings 46,000 Total Liabilities and Stockholders' Equity $ 922,000 Income Statement $ 818,000 $ 298,000 156,000 101,000 Sales Revenue Cost of Goods Sold 486,000 246,000 Other Expenses $ 86,000 $ 41,000 Net Income Other Data $ 18.00 $ 15.00 Per share price at end of year Selected Data from Previous Year Accounts Receivable, Net Notes Payable (long-term) Equipment, Net Inventory Total Stockholders' Equity $ 53,000 202,000 562,000 101,000 588,000 $ 20,000 67,000 172,000 44,000 240,000 These two companies…
5. Revenue and expense data for Young Technologies Inc. are as follows: Year 2 Year 1 Sales $500,000 $440,000 Cost of goods sold 325,000 242,000 Selling expenses 70,000 79,200 Administrative expenses 75,000 70,400 Income tax expense 10,500 16,400 Required: a. Prepare an income statement in comparative form, stating each item for both years as an amount and as a percent of sales. Round percentage amounts to nearest whole percent. ... b. Complete the following regarding the significant changes disclosed by the comparative income statement. The vertical analysis indicates that the cost of goods sold as a percent of sales (increased/decreased) between the two years. Selling and administrative expenses as a percentage of sales (increased/decreased) and income tax expense (increased/decreased). Overall, net income as a percent of sales (increased/decreased).
Here are the comparative income statements of Blossom Corporation. BLOSSOM CORPORATION Comparative Income Statement For the Years Ended December 31 Net sales Cost of goods sold Gross Profit Operating expenses Net income Net sales Cost of goods sold Gross Profit Operating expenses Net income (b) 2022 2022 $600,000 445,000 (a) Prepare a horizontal analysis of the income statement data for Blossom Corporation, using 2021 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.) 155,000 70,000 $ 85,000 445,000 155,000 70,000 2021 $500,000 400,000 $ 85,000 2021 100,000 $600,000 $500,000 40,000 $ 60,000 BLOSSOM CORPORATION Comparative Income Statement 400,000 100,000 40,000 $ $ 60,000 $ 2022 Increase or (Decrease) During 2022 Amount BLOSSOM CORPORATION Condensed Income Statements Percent + Prepare a vertical analysis of the income statement data for Blossom Corporation for both…