Ratio comparisions robert arias recently inherited a stock portfolio from his uncle. wishing to learn more about the companies that he is now invested in, robert performs a ratio analysis on each one and decides to compare them to each other. some of his ratios are listed below island electric utility- burger heaven-fink software-roland motorscurrent ratio 1.10 1.3 6.8 4.5quick ratio 0.90 0.82 5.2 3.7debt ratio 68.2% 46.1% 0% 34.9%profit margin 6.2% 14.3% 28.5% 8.4%assuming that his uncle was a wise investor who assembled the portfolio with care, robert finds the wide differences in these ratios confusing. him outa. what problems might robert encounter in comparing these companies to one another on the basis of their ratios? b. why might the current and quick ratios for the electric utility and the fast food stock be so much lower than the same ratio for the other company? c. why might it be all right for the electric utility to carry a large amount of debt, but the same is not true for the software company? d. why wouldn't investors invest all of their money in software companies instead of less profitable companies? (focus on risk and reward)

Fanning company is considering the addition of a new product to its cosmetics line. the company has three distinctly different options: a skin cream, a bath oil, or a hair coloring gel. relevant information and budgeted annual income statements for each of the products follow. skin cream bath oil color gel budgeted sales in units (a) 110,000 190,000 70,000 expected sales price (b) $8 $4 $11 variable costs per unit (c) $2 $2 $7 income statements sales revenue (a × b) $880,000 $760,000 $770,000 variable costs (a × c) (220,000) (380,000) (490,000) contribution margin 660,000 380,000 280,000 fixed costs (432,000) (240,000) (76,000) net income $228,000 $140,000 $204,000 required: (a) determine the margin of safety as a percentage for each product. (b) prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. (c) for each product, determine the percentage change in net income that results from the 20 percent increase in sales. (d) assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? (e) assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line?

Ashop owner uses a reorder point approach to restocking a certain raw material. lead time is six days. usage of the material during lead time is normally distributed with a mean of 42 pounds and a standard deviation of four pounds. when should the raw material be reordered if the acceptable risk of a stockout is 3 percent?

River corp's total assets at the end of last year were $415,000 and its net income was $32,750. what was its return on total assets? a. 7.89%b. 8.29%c. 8.70%d. 9.14%e. 9.59%