Why does a well-managed company monitor its long-term financial strength?

What is the formula for the price-earnings ratio?

What does the rate earned on average total assets show?

Many students are opposed to the use of RFID tags for attendance purposes. Write one paragraph explaining your point of view.

Bonita Bay Supply's credit terms are n/30. Analyze the company's days' sales in accounts receivable in terms of its credit policy and state any trend this measure reveals.

What rules are followed when preparing a tax return?

Information taken from Emerald Resort Incorporated's financial statements is provided in the Working Papers.

Instructions:

1. Calculate the following profitability measures for the current year and the prior year. Round percentage calculations to the nearest 0.1% and dollar amounts to the nearest $0.01. Use the results to determine whether the trend between the prior year and the current year appears to be favorable or unfavorable. Give reasons for your responses.

a. Gross margin

b. Operating margin stockholders' equity

c. Rate earned on average total assets

d. Rate earned on average

e. Free cash flow

2. Explain what free cash flow from the current year tells Emerald Resort Incorporated.

Information taken from S & T Company's comparative income statement and balance sheet is provided in the Working Papers.

Calculate the following financial strength ratios for the current year and the prior year. Round ratios to the nearest tenth.

Interest coverage ratio

Information taken from Morgan Enterprise's financial statements is provided in the Working Papers.

Calculate the following efficiency measures and market ratios for the current year and the prior year. Round percentage calculations to the nearest 0.1%, dollar amounts to the nearest $0.01, and the price-earnings ratio to the nearest tenth.

Dividend yield

Information taken from OfficeWorld Supply Company's comparative income statement and balance sheet is provided in the Working Papers.

Calculate the following financial strength ratios for the current year and the prior year. Round ratios to the nearest tenth.

Interest coverage ratio

Information taken from Bonita Bay Supply's financial statements is provided in the Working Papers.

Calculate the following efficiency measures and market ratios for the current year and the prior year. Round percentage calculations to the nearest 0.1%, dollar amounts to the nearest $0.01, and the price-earnings ratio to the nearest tenth.

Dividend yield

Information taken from OfficeWorld Supply Company's comparative income statement and balance sheet is provided in the Working Papers.

Calculate the following financial strength ratios for the current year and the prior year. Round ratios to the nearest tenth.

Common equity per share

Information taken from S & T Company's comparative income statement and balance sheet is provided in the Working Papers.

Calculate the following financial strength ratios for the current year and the prior year. Round ratios to the nearest tenth.

Common equity per share

Information taken from Bonita Bay Supply's financial statements is provided in the Working Papers.

Calculate the following efficiency measures and market ratios for the current year and the prior year. Round percentage calculations to the nearest 0.1%, dollar amounts to the nearest $0.01, and the price-earnings ratio to the nearest tenth.

Price-earnings ratio