See pages 154-155 requirements a-d for this week assignment (Ryan Boot Company). **For requirement "a" Just complete two ratios the first and the last ratio and not all 13 ratios. Complete requirement b, c, and d as required. Comprehensive Problem 1.

Ryan Boot Company (review of Chapters 2 through 5) (multiple LOs from Chapters 2 through 5)

EHENSIVE PROBLEM pany pters om a. Analyze Ryan Boot Company, using ratio analysis. Compute the Ryan ratios and compare them to the industry data that are given. Discuss the weak points, strong points, and what you think should be done to improve the company's performance. b. In your analysis, calculate the overall break-even point in sales dollars and the cash break-even point. Also compute the degree of operating leverage, degree of financial leverage, and degree of combined leverage. (Use footnote 2 for DOL and footnote 3 for DCL.) c. Use the information in parts a and b to discuss the risk associated with this company. Given the risk, decide whether a bank should lend funds to Ryan Boot Ryan Boot Company is trying to plan the funds needed for 20X2. The management anticipates an increase in sales of 20 percent, which can be absorbed without increas ing fixed assets. d. What would be Ryan's needs for external funds based on the current balance sheet? Compute RNF (required new funds). Notes payable (current) and bonds are not part of the liability calculation. e. What would be the required new funds if the company brings its ratios into line with the industry average during 20X2? Specifically examine receivables turn- over, inventory turnover, and the profit margin. Use the new values to recompute the factors in RNF (assume liabilities stay the same). EHENSIVE PROBLEM pany pters om a. Analyze Ryan Boot Company, using ratio analysis. Compute the Ryan ratios and compare them to the industry data that are given. Discuss the weak points, strong points, and what you think should be done to improve the company's performance. b. In your analysis, calculate the overall break-even point in sales dollars and the cash break-even point. Also compute the degree of operating leverage, degree of financial leverage, and degree of combined leverage. (Use footnote 2 for DOL and footnote 3 for DCL.) c. Use the information in parts a and b to discuss the risk associated with this company. Given the risk, decide whether a bank should lend funds to Ryan Boot Ryan Boot Company is trying to plan the funds needed for 20X2. The management anticipates an increase in sales of 20 percent, which can be absorbed without increas ing fixed assets. d. What would be Ryan's needs for external funds based on the current balance sheet? Compute RNF (required new funds). Notes payable (current) and bonds are not part of the liability calculation. e. What would be the required new funds if the company brings its ratios into line with the industry average during 20X2? Specifically examine receivables turn- over, inventory turnover, and the profit margin. Use the new values to recompute the factors in RNF (assume liabilities stay the same)