Vanhorn Company sells tennis racquets: variable costs for each are $75, and each is sold for $105.
Question:
Using the income statement analysis tools (common sized, variances), how do you evaluate the 2003 results versus 2002. Management has also indicated that price, on average, has deteriorated by 5% during 2003. As a banker looking for granting a loan to the Company, how do you evaluate the situation of the company in 2003? Use financial ratios to justify your comments and decision How would you comment the asset management performance in 2003 versus 2002? Justify your comments with all related ratios Calculate the ROI and ROE for the 2 years Prepare the Cash Flow statement (indirect method) with the following additional information: the Company purchased equipment for $ 20.000, 50% of which were paid in exchange of shares issued Dividends declared and paid in 2003 amounted to $ 5.000 What can you conclude from the Cash generated used by activity?
Fundamental Managerial Accounting Concepts
ISBN: 978-0078025655
7th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old