1. Using vertical analysis, what is the accounts receivable ratio? 2. Using vertical analysis, what is the inventory ratio?
1. Using vertical analysis, what is the accounts receivable ratio? 2. Using vertical analysis, what is the inventory ratio?
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter14: Financial Statement Analysis
Section: Chapter Questions
Problem 14.1EX: Vertical analysis of income statement Revenue and expense data for Innovation Quarter Inc. for two...
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Notes:
a. The firm has an 8-year financial lease requiring annual beginning-of-year payments of $50,000. Five years of the lease have yet to run.
b. Annual credit purchases of $6,200,000 were made during the year.
c. The annual principal payment on the long-term debt is $100,000.
d. On December 31, 2012, the firm’s common stock closed at $39.50 per share.
Question:
1. Using vertical analysis, what is the
2. Using vertical analysis, what is the inventory ratio?
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