Problem 3-6 Profitability ratios [LO2]
Dr. Zhivago Diagnostics Corp.'s income statement for 2013 is as follows:
Cost of goods sold
Problem 2-3 Gross profit [LO1]
Hillary Swank Clothiers had sales of $455,000 and cost of goods sold of $304,000.
a. What is the gross profit margin (ratio of gross profit to sales)? (Do not round intermediate
calculations. Input your answer as a percent r
Instructor: Haowen Luo, Ph.D.
Class Meetings: Monday and Wednesday 1:30 p.m.-2:45 p.m. KT G41
Office Hours: Monday and Wednesday 4:15 p.m. 5:15 p.m., or by appointment
Office: NF 350C
Chapter 3 Financial
HAOWEN LUO PH.D.
Explain the purpose and importance of
Calculate and use a comprehensive set of
measurements to evaluate a companys
Uses of Financial
TAXES AND CASH FLOW
Haowen Luo, Ph.D.
Understand the structure and content of balance sheet, income
statement and statement of cash flow
Understand the difference between accounting (book) va
Chapter 5 Homework Questions
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
A certificate of deposit that pays 9.8% compounded monthly is better than a similar
certificate of deposit that pays 10% compound
Part 1: True or False Questions
1. An income statement reports a firm's cumulative revenues and expenses from the inception
of the firm through the income statement date.
2. Common-sized income statements are used to compare companies that have the same
Introduction to Corporate
Haowen Luo, Ph.D.
Understand the basic principles of finance, their importance, and the
importance of ethics and trust.
Identify the goal of the firm.
Describe the role of finance
Part 1: True or false Questions
The fundamental goal of a business is to maximize the retained earnings available to the corporation's
Shareholder wealth maximization means maximizing the price of the existing common stock.
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As currency risk intensifies, companies of all sizes are taking steps to protect cash flows.
Kate O'Sullivan, CFO Magazine
April 1, 2010
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THIS year Henry Kravis and George Roberts, the second K and th
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Good and Bad Motives
Corporate Governance and Restructuring
Twenty Largest Merger Transactions, August 2000 July 2013
Percentage of Public Companies Taken Over Each Quarter,
Significance of M&
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When we look back 20 years from now, the lawsuit by Daniel S. Loeb and his Third Point hedge fund
Currency Risks Merit Close Monitoring
Complacency over foreign-exchange risk in any market can blow a big hole in a companys budget,
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Manufacturers and other businesses importing from
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AS INVENTIONS go, the public company is one of capitalisms greatest. Initial public offerings promote innovation, by providing an exit rou
Gross profit/sales= %
ROA=net income (earnings after tax)/total assets.Profit margin x asset turnover ration
Sales=total assets x asset turnover
profit margin= net income/sales
Balance Sheet has cash