Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Basic Finance Expert

Linden Corp. has a 10% market share in its industry. Below are income state- ments ($millions) for Linden and for the industry.

 

Linden

Industry

Sales

$6,000

$64,000

Cost of goods sold

3,200

33,650

Gross margin Expenses:

Sales  and marketing

$2,800

$430

$30,350

$3,850

Engineering

225

2,650

Finance and administration

650

 4,560

Total expenses

$1,305

$11,060

EBIT

$1,495

$19,290

Interest expense

230

4,500

EBT

$1,265

$14,790

Tax

500

5,620

Net income

$765

$9,170

a. Develop common sized income statements for Linden and the industry as a whole.

b. What areas should management focus on to improve performance, and what kind of issues should be examined or looked for in each area?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91723289

Have any Question?


Related Questions in Basic Finance

In 1896 the first us open golfnbspchampionship was held the

In 1896, the first U.S. Open Golf Championship was held. The winner's prize money was $160. In 2012, the winner's check was $1,360,000. Requirement 1: What was the annual percentage increase in the winner's check over th ...

Describe a bank accepted bill and explain the role of the

Describe a bank accepted bill, and explain the role of the acceptor, payee, drawer and discounter, in the context of bank accepted bills.

Question - time value of money answer the following

Question - TIME VALUE OF MONEY Answer the following questions: a. Assuming a rate of 10% annually, find the FV of $1,000 after 5 years. b. What is the investment's FV at rates of 0%, 5%, and 20% after 0, 1, 2, 3, 4, and ...

Question - river enterprises has 500 million in debt and 20

Question - River Enterprises has $500 million in debt and 20 million shares of equity outstanding. Its excess cash reserves are $15 million. They are expected to generate $200 million in free cash flows next year with a ...

What is the current price of ordinary common shares in amp

What is the current price of ordinary / common shares in AMP superannuation and Commonwealth Bank of Australia? How has each evolved over the past 5-years?

A firm is considering the two mutually exclusive

A firm is considering the two mutually exclusive investments projects. Project Alpha requires an initial outlay of $600 and will return $160 per year for the next seven years; Project Beta requires an initial outlay of $ ...

Suppose your firm is considering investing in a project

Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 10 percent, and that the maximum allowable payback and discounte ...

You take out an 8700 car loan that calls for 36 monthly

You take out an $8,700 car loan that calls for 36 monthly payments starting after 1 month at an APR of 9%.

A project has an initial cost of 30000 and will produce

A project has an initial cost of $30,000 and will produce cash inflows of 8000 per year for the next five years. In addition, the project will have a salvage value of $2000 at the end of its useful life. Find the net pre ...

What choices does one have to make when deciding on health

What choices does one have to make when deciding on health care coverage options? What are consumer health care costs in today's market?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As