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Washington State University *
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Subject
Finance
Date
Apr 3, 2024
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Uploaded by JudgeRain12502
Avista Utilities & Rite Aid Financial Statements –
Pre-Work
1.
How much net income or net loss did Avista Utilities and Rite Aid each make in the most recent year they reported? HINT: be sure to look at the last line of the heading so you are accurate in the numbers you report. Avista : 147,344 Rite Aid: -538,478 2.
Review Avista and Rite Aid’s current and quick ratios. Why are these ratios the same as each other for Avista but different for Rite Aid? Explain why this makes sense given the type of companies Avista Utilities and Rite Aid are. Since Rite aid is in the hole quite a bit of money, their ratios are going to be off. Rite Aid is also a product/retail store while Avista provides a service, no undoubtedly they will be different. 3.
a) Provide the formula for the debt to equity ratio for Rite Aid. b) Then provide the actual numbers you would use to calculate the debt to equity ratio for the fiscal year ending February 26, 2022. Calculate the ratio and verify it matches the value provided on the ratios tab. c) Then describe what the ratio means. Total Liabilities/Shareholder Equity 8,429,970/8,529,003 Debt to equity –
85.123 Debt assets -0.988 Debt to equity is how much the company is financed by debt and equity. debt to assets show how much of the total funds are provided by creditors.
4.
a) Provide the formula for Return on Equity and Net Profit Margin ratios for Avista Utilities. b) Then provide the actual numbers you would use to calculate these two ratios for 2021. Calculate the ratios and verify they match the values provided on the ratios tab. c) Then describe what the ratios mean. Debt to equity:total liabilities/total equity (both on balance sheet) Debt to assets:total liabilities/total assets (both on balance sheet) Debt to equity: 8,429,970/99,033= 85.123Debt to assets: 8,429,970/8,529,003= 0.988 Debt to equity is how much the company is financed by debt and equity. Debt to assets shows how much of the total funds are provided by creditors.
5.
Review Avistas
’ Net Profit Margin ratio across 2019, 2020, and 2021. Describe the trend in the ratio. Using values from the income statement, explain what is causing the trend. It seems as if they are losing money as a company and becoming less profitable as the years go on. The ratios are moving in the direction the shouldn’t be. 6.
On each of the income statement and balance sheet tabs, your are provided with each value as a % of revenue. Analyzing these values allows you to look for trends in expenses and compare financial statements across companies. (This is what we did in class when introducing financial statements where we compared a bank to a pharmaceutical company.) Review the %ages of revenue and identify and describe 2 observations about either a trend in expenses or a difference between Avista Utilities and Rite Aid. The percentages within their assets is pretty similar, they both are under 10% for the most part. The other thing I noticed was Avistas Assets were everything to them percentage wise, for Rite Aid it was much more spread around different areas.
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Related Questions
dont uplode any image in answer
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2) Ratios
Based on the information given in picture #1, complete the following ratios for the last TWO years and indicate whether the trend is favorable or unfavorable. Note percentages and times should be to one decimal place (e.g. 14.8%; 5.8x)
Profitability Ratios Current Yr. Prior Yr. Fav/Unfav.
Gross Margin (%)
{Gross Income/Sales Revenue}
Profit Margin (%)
{Net income/ Sales Revenue}
Return on Assets (%)
{Net Income/ Average Total Assets}
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2) Ratios
Based on the information given in picture #1, complete the following ratios for the last TWO years and indicate whether the trend is favorable or unfavorable. Note percentages and times should be to one decimal place (e.g. 14.8%; 5.8x)
Profitability Ratios Current Yr. Prior Yr. Fav/Unfav.
Gross Margin (%)
{Gross Income/Sales Revenue}
Profit Margin (%)
{Net income/ Sales Revenue}
Return on Assets (%)
{Net Income/ Average Total Assets}
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Find the following financial ratios for Smolira Golf Corporation (use year-end figures rather than average values where appropriate): (Enter the profitability ratio answers as a percent rounded to 2 decimal places, e.g., 32.16. Round the remaining answers to 2 decimal places, e.g., 32.16.)
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=
The current year financial statements for Blue Water Company and Prime Fish Company are presented below.
Prime Fish
Balance sheet
Cash
Accounts receivable (net)
Inventory
Property & equipment (net)
Other assets
Total assets
Current liabilities
Long-term debt (interest rate: 15%)
Capital stock ($10 par value)
Additional paid-in capital
Retained earnings
Total liabilities and stockholders' equity
Income statement
Sales revenue (1/2 on credit)
Cost of goods sold
Operating expenses
Net income
Other data
Per share stock price at end of current year
Blue Water
$ 42,300
44,500
92,500
159,500
85,300
$ 424,100
$ 92,500
74,100
157,100
30,300
70,100
$ 424,100
$ 427,500
(234,500)
(163,600)
$ 29,400
$ 23.3
45%
$ 19,700
34,900
47,800
416,600
318,000
$ 34,300
$ 837,000
$ 68,500
62,600
525,000
107,300
73,600
$ 837,000
$ 789,000
(401,300)
(312,300)
$ 75,400
$28
45%
Average income tax rate
Dividends declared and paid in current year
Both companies are in the fish catching and manufacturing business.…
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Do npt give image format
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Required:
Compute the following: (For Requirements 1 to 4, enter your percentage answers rounded to 2 decimal places (i.e., 0.1234 should
be entered as 12.34).)
1. Gross margin percentage.
2. Net profit margin percentage.
3. Return on total assets.
4. Return on equity.
5. Was financial leverage positive or negative for the year?
1. Gross margin percentage
%
2. Net profit margin percentage
%
3. Return on total assets
%
4. Return on equity
%
5. Financial Leverage
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N1.
Account
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2) Ratios
Based on the information given in picture #1, complete the following ratios for the last TWO years and indicate whether the trend is favorable or unfavorable. Note percentages and times should be to one decimal place (e.g. 14.8%; 5.8x)
Liq./Solv. Ratios Current Yr. Prior Yr. Fav/Unfav.
Current Ratio (X)
{Total. Current Assets/
Total Current Liabilities}
Quick Ratio (X)
{Cash + Short term Investments +
Current Receivables/ Current Liabilities}
Day's Sales Uncollected (days)
{Total Accounts Receivables / Sales x 365}
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2) Ratios
Based on the information given in picture #1, complete the following ratios for the last TWO years and indicate whether the trend is favorable or unfavorable. Note percentages and times should be to one decimal place (e.g. 14.8%; 5.8x)
Liq./Solv. Ratios Current Yr. Prior Yr. Fav/Unfav.
Current Ratio (X)
{Total. Current Assets/
Total Current Liabilities}
Quick Ratio (X)
{Cash + Short term Investments +
Current Receivables/ Current Liabilities}
Day's Sales Uncollected (days)
{Total Accounts Receivables / Sales x 365}
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Use for financial statements for Yellow Hammer to answer problems 1-3
1. Assess Yellow Hammer's income statement by calculating the sales growth,
EBITDA profitability (EBITDA/Sales) and coverage ratios using EBIT and EBITDA
for each year.
2. Assess Yellow Hammer's balance sheet by calculating the leverage ratios using of
Debt/Capitalization and Debt/EBITDA.
3. Using the table below and the ratios that you've calculated, insert the EBIT
interest coverage, EBITDA interest coverage, Debt/EBITDA and Debt to
Capitalization and then provide an assessment of Yellow Hammer's credit
quality.
Oper. income (bef. D&A)/revenues (%)
Return on capital (%)
EBIT interest coverage (x)
EBITDA interest coverage (x)
FFO/debt (%)
Free oper. cash flow/debt (%)
Disc. cash flow/debt (%)
Debt/EBITDA (x)
Debt/debt plus equity (%)
AA
32.1
19.7
13.1
17.9
72.3
43.9
18.3
1.0
21.0
A
19.1
16.8
8.1
11.6
53.0
28.4
10.6
1.4
32.1
BBB
17.1
12.0
4.5
7.1
34.5
15.5
6.9
2.1
42.2
BB
20.4
9.5
3.0
4.9
24.0
9.0
3.9
2.9
47.4
B
15.3…
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Use this data to compute the following ratios:
1.Current ratio (Dec 2020
)2.Acid-test Ratio (Dec 2020)
3.Accounts Receivable Turnover
4.Inventory Turnover
5.Return on Assets
6.Profit Margin on Sales
7.Return on Equity
8.Times Interest Earned
b.Discuss the financial condition of ABC Company, Inc. based on what you learn from computing the ratios.
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Please help me
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V. Direction: Solve the following problems using financial ratios. Write the answer on the blank.
1. Current assets is P20,000, current liabilities is P30,000. What is the current ratio?
2. Inventory is P15,000; Accounts Payable is P45,000. Cash and accounts receivable total P8,000.
What is the current ratio?
What is the quick ratio?
3. If current ratio is 1.5, what is the total accounts receivable if cash is P220,000, inventory is P75,000,
and accounts payable is P330,000?
4. Cash is 30% of total current assets. If current ratio is 2.5, what is the new current ratio if total non-
cash current assets grow by 50%?
5. The total asset is P1,500,000. Sales is P4,500,000. What is the asset turnover?
6. Accounts receivable turnover is 8. What is the average collection period assuming annual data
What is the average collection period if quarterly data are used?
are used?
7. Sales for the year amount to P3,000,000, Accounts receivable is P360,000. What is the average
collection period assuming…
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Analyze and interpret the financial statements of MERALCO for 2018 and 2019. Use at least two ratios each for profitability, solvency and liquidity areas. Analyze which of these years MERALCO is doing better for each of the financial ratio tools.
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Please correct Solution with Explanation and do not give image format
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The financial statements of Dandy Distributors Ltd. are shown on the "Fcl. Stmts." page.
1
Based on Dandy's financial statements, calculate ratios for the year ended December 31, 2020. Assume all sales are on credit. Show your work.
2
From these ratios, analyze the financial performance of Dandy.
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Comparative financial statements for Weller Corporation, a merchandising company, for the fiscal year
ending December 31 appear below. The company did not issue any new common stock during the year. A
total of 500,000 shares of common stock were outstanding. The interest rate on the bonds, which were sold
at their face value, was 10%. The income tax rate was 40% and the dividend per share of common stock
was $1.00 last year and $0.65 this year. The market value of the company's common stock at the end of
the year was $29. All of the company's sales are on account.
Weller Corporation
Comparative Balance Sheet
(dollars in thousands)
This Year Last Year
Assets
Current assets:
$ 1,230
9,200
13,200
$ 1,290
8,.400
Cash
Accounts receivable, net
Inventory
Prepaid expenses
11,800
690
770
Total current assets
24,400
22,180
Property and equipment:
Land
9,100
45,013
9,100
41,444
Buildings and equipment, net
Total property and equipment
54,113
50,544
Total assets
$78,513
$72,724
Liabilities and…
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Prepare a vertical analysis of both the balance sheets and income statements for Year 4 and Year 3.
Complete this question by entering your answers in the tabs below.
Analysis Analysis
Bal Sheet Inc Stmt
Prepare a vertical analysis of an income statements for Year 4 and Year 3. (Percentages
may not add exactly due to rounding. Round your answers to 2 decimal places. (i.e., .2345
should be entered as 23.45).)
Revenues
Sales (net)
Other revenues
Total revenues
RUNDLE COMPANY
Vertical Analysis of Income Statements
Year 4
Expenses
Cost of goods sold
Selling, general, and
administrative expense
Net income
Interest expense
Income tax expense
Total expenses
Amount
$
230,300
8,900
239,200
Percentage
of Total
119,400
54,300
6,700
22,100
202,500
$
36,700
Show less
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Please do not give solution in image format thanku
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Alex is currently considering to invest his money in one of the companies betweenCompany A and Company B. The summarized final accounts of the companies for theirlast completed financial year are as follows: (refer to the images)
Required:a. Calculate the following ratios for Company A and Company B. State clearly theformulae used for each ratio:i. Gross Profit Marginii. Net Profit Marginiii. Inventory Turnover Period (days)iv. Receivables Collection Period (days)v. Payables Payment Period (days)vi. Current Ratiovii. Quick Ratiob. Comment on each of the ratios calculated in part (a) above.
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Please help me answer 4-7 only
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The following financial statements apply to Jordan Company:
Year 2
Year 1
Revenues
$ 220,000
$ 180,300
Expenses
Cost of goods sold
125,200
102,300
Selling expenses
21,000
19,000
General and administrative expenses
10,500
9,500
Interest expense
1,100
1,100
Income tax expense
19, 200
17, 200
Total expenses
177,000
149, 100
Net income
$ 43,000 $
31, 200
Assets
Current assets
Cash
$
$
7,500
5,800
1,700
1,700
Marketable securities
Accounts receivable
Inventories
35,300
30,800
101,500
94,000
Prepaid expenses
4,700
3,700
Total current assets
149,000
137,700
Plant and equipment (net)
105,400
105,400
Intangibles
22,000
0
Total assets
$ 276,400 $ 243,100
Liabilities and Stockholders' Equity
Liabilities
Current liabilities
Accounts payable
$ 39,000
$ 34,000
Other
15,800
16,100
Total current liabilities
54,800
50, 100
Bonds payable
65,700
66,700
Total liabilities
120,500
116,800
Stockholders' equity
114,100
114, 100
Common stock (49,000 shares)
Retained earnings
41,800
12,200
Total stockholders'…
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Instructions
Using the financial statements and additional information, compute the following ratios for the El
Camino Company for 2021. Show all computations.
Computations
1. Current ratio
2. Return on common stockholders' equity
3.
Price-earnings ratio
4.
Inventory turnover
5. Accounts receivable turnover
6.
Times interest earned
7.
Profit margin
8.
Days in inventory
9.
Payout ratio
10. Return on assets
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Compute the missing amounts on the company’s financial statements. (Hint: What’s the difference between the acid-test ratio and the current ratio?)10. Gross margin11. Selling and administrative expenses12. Bonds payable
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a) Based on the information provided, calculate the following ratios for the years ended 31December 2021 and 2020.You should give the formula for each ratio, in addition to your calculation.I. Gross profit marginII. Operating profit marginIII. Return on equityIV. Current ratioV. Gearing
b) By comparing the financial information for years ended 31 December 2021 and 2020, andreviewing your ratio calculations, comment on the profitability, liquidity, and long-termsolvency of Mabel’s business over the past year. You should use the other information givento suggest reasons for any changes identified.
c)If an investor was interested in buying Mabel’s business and was presented with theseresults, what further advice would you give them?
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Complete this question by entering your answers in the tabs below.
Analysis Analysis
Bal Sheet Inc Stmt
Prepare a vertical analysis of an income statements for Year 4 and Year 3. (Percentages
may not add exactly due to rounding. Round your answers to 2 decimal places. (i.e., .2345
should be entered as 23.45).)
Revenues
Sales (net)
Other revenues
Total revenues
Expenses
Cost of goods sold
FANNING COMPANY
Vertical Analysis of Income Statements
Year 4
Selling, general, and
administrative expense
Interest expense
Income tax expense
Total expenses
Net income
Amount
$
231,900
9,300
241,200
118,800
54,200
6,800
22,800
202,600
$
38,600
Percentage
of Total
Analysis Bal Sheet
%
%
Year 3
Amount
$
211,200
6,400
217,600
102,100
49,100
6,000
21,800
179,000
$
Percentage
of Total
%
%
38,600
Analysis Inc Stmt >
Show less
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MUST SHOW FULL WORK (PROCESS)
35. Calculating Financial Ratios Find the following financial ratios for Smolira
Golf (use year-end figures rather than average values where appropriate):
Short-term solvency ratios
a. Current ratio
________________
b. Quick ratio
________________
c. Cash ratio
________________
Asset utilization ratios
d. Total asset turnover
________________
e. Inventory turnover
________________
f. Receivables turnover
________________
Long-term solvency ratios
g. Total debt ratio
________________
h. Debt–equity ratio
________________
i. Equity multiplier
________________
j. Times interest earned ratio
________________
k. Cash coverage ratio
________________
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MUST SHOW FULL WORK (PROCESS)
35. Calculating Financial Ratios Find the following financial ratios for Smolira
Golf (use year-end figures rather than average values where appropriate):
Short-term solvency ratios
a. Current ratio
________________
b. Quick ratio
________________
c. Cash ratio
________________
Asset utilization ratios
d. Total asset turnover
________________
e. Inventory turnover
________________
f. Receivables turnover
________________
Long-term solvency ratios
g. Total debt ratio
________________
h. Debt–equity ratio
________________
i. Equity multiplier
________________
j. Times interest earned ratio
________________
k. Cash coverage ratio
________________
Profitability ratios
l. Profit margin
________________
m. Return on assets
________________
n. Return on equity
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Please help me with correct answer thanku
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Using the financial statements
provided below for ABC
Manufacturing Company, calculate all the
ratios listed below for both 2020 and2021. Assume that all sales are credit sales.
(a) Calculate the ratios forABC Manufacturing Company for2020 and 2021.
(b)Put an“I/D” beside the Year 2021 ratio calculation if the ratio has Improved/Deteriorated.
Putan“S”/“W” beside the Year 2021 ratio if ABC
Manufacturing Company’s ratio is Stronger/Weake rthan its competitors
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Compare the two companies based on their ratios. Use the last column in the template to detail how each company is doing in relation to the ratios. Explain the significance of how the company ratios compare to each other.
RATIOS
Ford Motor Co
General Motors Co
ANALYSIS
Profitability Ratios (%)
Gross Margin
15.01
17.9
EBITDA Margin
8.66
15.55
Operating Margin
2
3
Pre-Tax Margin
2.71
5.81
Effective Tax Rate
14.96
5.54
Financial Strength
Quick Ratio
1.04
0.73
Current Ratio
1.2
0.92
LT Debt to Equity
2.8
1.88
Total Debt to Equity
7.14
5.85
Interest Coverage
4.54
14.05
Valuation Ratios
Price/Earnings Ratio
4.9
35.6
Price to Sales P/S
0.2
2.2
Price to Book P/B
0.9
1.2
Free Cash Flow per Share
2.26
-6.95
Management Effectiveness (%)
Return On Assets
1.43
3.6
Return On Investment
2.18
6.02
Return On Equity
10.38
21.43
Efficiency
Receivable Turnover
2.5
4.74…
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- dont uplode any image in answerarrow_forward2) Ratios Based on the information given in picture #1, complete the following ratios for the last TWO years and indicate whether the trend is favorable or unfavorable. Note percentages and times should be to one decimal place (e.g. 14.8%; 5.8x) Profitability Ratios Current Yr. Prior Yr. Fav/Unfav. Gross Margin (%) {Gross Income/Sales Revenue} Profit Margin (%) {Net income/ Sales Revenue} Return on Assets (%) {Net Income/ Average Total Assets}arrow_forward2) Ratios Based on the information given in picture #1, complete the following ratios for the last TWO years and indicate whether the trend is favorable or unfavorable. Note percentages and times should be to one decimal place (e.g. 14.8%; 5.8x) Profitability Ratios Current Yr. Prior Yr. Fav/Unfav. Gross Margin (%) {Gross Income/Sales Revenue} Profit Margin (%) {Net income/ Sales Revenue} Return on Assets (%) {Net Income/ Average Total Assets}arrow_forward
- Some recent financial statements for Smolira Golf Corporation follow. Find the following financial ratios for Smolira Golf Corporation (use year-end figures rather than average values where appropriate): (Enter the profitability ratio answers as a percent rounded to 2 decimal places, e.g., 32.16. Round the remaining answers to 2 decimal places, e.g., 32.16.)arrow_forward= The current year financial statements for Blue Water Company and Prime Fish Company are presented below. Prime Fish Balance sheet Cash Accounts receivable (net) Inventory Property & equipment (net) Other assets Total assets Current liabilities Long-term debt (interest rate: 15%) Capital stock ($10 par value) Additional paid-in capital Retained earnings Total liabilities and stockholders' equity Income statement Sales revenue (1/2 on credit) Cost of goods sold Operating expenses Net income Other data Per share stock price at end of current year Blue Water $ 42,300 44,500 92,500 159,500 85,300 $ 424,100 $ 92,500 74,100 157,100 30,300 70,100 $ 424,100 $ 427,500 (234,500) (163,600) $ 29,400 $ 23.3 45% $ 19,700 34,900 47,800 416,600 318,000 $ 34,300 $ 837,000 $ 68,500 62,600 525,000 107,300 73,600 $ 837,000 $ 789,000 (401,300) (312,300) $ 75,400 $28 45% Average income tax rate Dividends declared and paid in current year Both companies are in the fish catching and manufacturing business.…arrow_forwardDo npt give image formatarrow_forward
- Required: Compute the following: (For Requirements 1 to 4, enter your percentage answers rounded to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) 1. Gross margin percentage. 2. Net profit margin percentage. 3. Return on total assets. 4. Return on equity. 5. Was financial leverage positive or negative for the year? 1. Gross margin percentage % 2. Net profit margin percentage % 3. Return on total assets % 4. Return on equity % 5. Financial Leveragearrow_forwardN1. Accountarrow_forward2) Ratios Based on the information given in picture #1, complete the following ratios for the last TWO years and indicate whether the trend is favorable or unfavorable. Note percentages and times should be to one decimal place (e.g. 14.8%; 5.8x) Liq./Solv. Ratios Current Yr. Prior Yr. Fav/Unfav. Current Ratio (X) {Total. Current Assets/ Total Current Liabilities} Quick Ratio (X) {Cash + Short term Investments + Current Receivables/ Current Liabilities} Day's Sales Uncollected (days) {Total Accounts Receivables / Sales x 365}arrow_forward
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