5 The following shows budget figures and actual figures profit expense for a

5 the following shows budget figures and actual

This preview shows page 29 - 34 out of 46 pages.

5 The following shows budget figures and actual figures (profit & expense) for a month. Compute the percentages and variances indicated. Follow the instructions in the comment boxes. Budget Actual Variance Jan Jan Jan Gross profit 42,589 32,845 Salaries 20,000 27,520 Payroll taxes 5,040 6,935 Lease 1,000 1,000 Phone 500 562 Supplies 300 142 Insurance 500 500 Total OpEx 27,340 36,659 What does it mean to common-size a report? Property, plant & equipment Cash and cash equivalents Current portion of long- term borrowings TOTAL EQUITY AND LIABILITIES
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EBITDA: Actual 15,249 -3,814 EBITDA: Plan Gross profit Salaries Payroll taxes Lease Phone Supplies Insurance Total OpEx EBITDA 6 Considering the variance figures in the above analysis, what expense seem most problematic? 7 The following table shows the headcount and profit & expense data for a department in a company. Compute the per-employee (common-sized) figures for the profit and expense items. Jan Feb Mar Apr May Jun Headcount 5 5 5 5 3 3 Gross profit 32,845 46,208 21,710 12,607 18,938 18,268 Salaries 27,520 22,701 25,984 22,618 16,761 16,783 Payroll taxes 6,935 5,721 6,548 5,700 4,224 4,229 Lease 1,000 1,000 1,000 1,000 1,000 1,000 Phone 562 737 608 678 486 259 Supplies 142 263 132 299 106 158 Insurance 500 500 500 500 500 500 Total OpEx 36,659 30,922 34,772 30,795 23,077 22,929 EBITDA: Actual -3,814 15,286 -13,062 -18,188 -4,139 -4,661 EBITDA: Plan 15,249 26,425 11,506 -8,996 -3,698 -2,997 Gross profit Salaries Payroll taxes Lease Phone Supplies Insurance Total OpEx EBITDA: Actual EBITDA: Plan 8 What is ratio analysis? 9 Describe issues related to interpreting industry averages and trenad and to comparing rations within industries. 10 Compare horizontal and veritical analysis.
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11 What is a profitability ratio? How are they interpreted? 12 In analyzIng a company's profitability, which ratios are commonly used? 13 Define financial leverage and list commonly used leverage ratios. 14 What is liquidity and what are the commonly used liquidity ratios? 15 Compute the Earnings per Share for the following: Net Income $ 658,964 2,000 EPS 16 Compute the Gross Profit Margin for the following: Sales $ 2,984,077 Cost of Sales $ 1,523,477 Gross Profit Margin 17 Compute the Net Profit Margin for the following: Net Income $ 458,964 Sales $ 2,925,707 Net profit margin 18 Compute the Return on Assets for the following: EBIT $ 310,838 Total Assets $ 3,612,824 Return on Assets 19 Compute the Return on Equity for the following: EBIT $ 310,838 Total Equity $ 2,123,456 Return on Equity Shares of common stock outstanding
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20 Compute the Debt Ratio for the following: Total Liabilities $ 1,645,225 Total Assets $ 3,922,889 Debt Ratio 21 Compute the Equity Ratio for the following: Stockholders' Equity $ 2,999,425 Total Assets $ 4,665,668 Equity Ratio 22 Compute the Times Interest Earned ratio for the following: EBIT $ 645,001 Interest $ 28,792 Times Interest Earned 23 Compute the Current Ratio on the following: Current Assets $ 1,400,815 Current Liabilities $ 693,849 Current Ratio 24 Compute the Quick Ratio on the following: Current Assets $ 1,400,815 Inventory $ 666,748 Current Liabilities $ 693,849 Quick Ratio
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1 2 Using the two most recent years shown create a two-year percentage of sales forecast for the items shown in the income statement.
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