FIN 415 help A Clearer path to student success/uophelp.com FIN 415 help A Clearer path to student success/uop | Page 33

c.
d.
e.
f.
g.
h.
i.
j.
Cash Ratio – cash/current liabilities
Debt Ratio – total liabilities/total assets
Cash Coverage Ratio – (EBIT + depreciation/interest expense
Inventory Turnover – cost of goods sold/inventory
Receivables Turnover – sales/accounts receivable
Total Asset Turnover – sales/total assets
Profit Margin – net income/sales
Return on Equity – net income/total owner’s equity
8. Find the industry ratios for the company using the Dun & Bradstreet ® Key Business
Ratios. Locate the Dunn & Bradstreet Database by accessing the University of Phoenix
Library and then locating Library Resources. Click on Alphabetical List of Resources and
find Dunn and Bradstreet. Click on the link and search for your selected company. ISC is
a manufacturing company of plastic parts for the automotive industry – try and select a
company closest to our company. Please use 3089 Plastic Products and NAICS of 326199
for manufacturing using 2014 data and the lower amount. Only provide the Quick and
Current Ratios from 2015/2016 from problem 7 and add the ratios from Dun & Bradstreet
to compare and briefly suggest what direction ICS should head into with the comparison.
9. ICS plans to expand their operations as stated in Problem 5 – and are considering
taking the loan – however, they have a few investors that are interested in lending money
for this venture. They need a total of $775,000, and if they lend the money today, ICS
will repay it, with interest, at the end of the year. Company A agrees to lend $300,000
and they require 5% interest, Company B will lend $200,000 at 6% interest, and
Company C will loan the balance but they won’t settle for less than 10% interest. What
is the weighted average cost of this capital (WACC)?
10. In 250-350 words, explain what cash flow is and why cash is so important to a
business.
Include in your analysis the cash that ICS maintains on hand and whether it is sufficient
or not.
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FIN 419 Week 5 Individual My FinanceLab (with Excel File)