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Financial Analysis and Ratios
Problem I
Manaia Manufacturing had the following operating results for 2022: sales = $32,861; cost of goods sold = $23,795; depreciation expense = $3,817; interest expense = $565; dividends paid = $908. At the beginning of the year, net fixed assets were $21,859, current assets were $3,913, and current liabilities were $3,421. At the end of the year, net fixed assets were $25,286, current assets were $4,819, and current liabilities were $3,279. The tax rate was 24 percent.
a) What is net income for 2022?
b) What is the operating cash flow for 2022?
c) What is the cash flow from assets for 2022? Is this possible? Explain.
d) If no new debt was issued during the year, what is the cash flow to creditors? What is the cash flow to stockholders? Explain and interpret the positive and negative signs of your answers in parts (a) through (d).
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Financial Analysis and Ratios
problem II
Calculate the ratios:
Listed below are the balance sheet and income statement for XYZ company. Use these financial statements to calculate liquidity, asset management, debt management, profitability, and market value ratios for both year and comment on them (by comparing 2023 to 2024)
Problem III
Growth and Assets: A firm wishes to maintain an internal growth rate of 6.4 percent and a dividend payout ratio of 25 percent. The current profit margin is 5.7 percent, and the firm uses no external financing sources. What mut total assets turnover be?
Financial Analysis and Ratios
Financial Analysis for Manaia Manufacturing, XYZ Company, and Growth Calculations
Abstract
This paper addresses three financial analysis problems, focusing on Manaia Manufacturing’s 2022 performance, XYZ Company’s ratio analysis for 2023–2024, and a firm’s asset turnover for sustainable growth. Problem I calculates net income, operating cash flow, cash flow from assets, and cash flows to creditors and stockholders for Manaia Manufacturing, interpreting results. Problem II computes liquidity, asset management, debt management, profitability, and market value ratios for XYZ Company, comparing trends. Problem III determines the total asset turnover required for a 6.4% internal growth rate. Using principles from Ross et al. (2020), the analysis provides actionable insights for financial decision-making at Southern Wellness Care LLC, a hypothetical context.