Subject – Finance 12. Steel Dynamics [STLD], a Nucor competitor, uses the FIFO inventory method. Selected data for 1997 through 1999 follow ($ in…

Subject – Finance

12. Steel Dynamics [STLD], a Nucor competitor, uses the FIFO inventory method. Selected

data for 1997 through 1999 follow ($ in thousands):

1997 1998 1999

Sales $514,786 $618,821

Cost-of-goods-sold 428,978 487,629

Net Income 31,684 39,430

Ending Inventory $ 60,163 126,706 106,742

Ending Equity 337,595 351,065 391,370

(a) Using reported data, compute each of the following ratios for 1998 and 1999 for

Steel Dynamics:

• Gross profit margin

• Return on equity

• Inventory turnover ratio

(b) Assume that Steel Dynamics used the LIFO inventory method. Redo (a) using adjusted

ratios for Steel Dynamics. For each ratio, use the method(s) you deem most

appropriate and justify your choice.

(c) Explain why the adjustments improve the apparent performance of Steel Dynamics

for 1998 but reduce it for 1999.

(d) Explain why the adjusted ratios provide a more useful comparison for the two

years.

(e) Explain why the adjusted ratios provide a more useful comparison between Steel

Dynamics and Nucor for the two years

Show more

Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more