7Problem 8-9B (Algo) Calculate and analyze ratios (LO8-6)View previous attempt3pointsFerris AirSelected financial data regarding current assets and current liabilities for Ferris Air and Oceanic Airlines are provided as follows:($ in millions)OceanicAirlinesCurrent assets:Cash and cash equivalents$1,135$3,784Current investments3,0141,261Net receivables7211,754eBookInventory435298Other current assets180547Total current assets$5,485$7,644Current liabilities:ReferencesCurrent debt$6,779$6,691Accounts payable2,5822,317Other current liabilities01,514Total current liabilities$9,361$10,522Required:McGrawHill1-a. Calculate the current ratio for Ferris Air and Oceanic Airlines.1-b. Which company has the more favorable current ratio?2-a. Calculate the acid-test (quick) ratio for Ferris Air and Oceanic Airlines.2-b. Which company has the more favorable acid-test ratio?Complete this question by entering your answers in the tabs below.Req 1AReq 1BReq 2AReq 2BCalculate the acid-test (quick) ratio for Ferris Air and Oceanic Airlines. (Enter your answers in millions. For example,$5,500,000 should be entered as 5.5.)< Prev7 of 11Next >

1) Current ratio is computed by dividing current assets over current…

Answered: 7 Problem 8-9B (Algo) Calculate and…

Survey of Accounting (Accounting I)

8th Edition

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Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

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Problem 9.4.10P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...

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Problem 8-9B (Algo) Calculate and analyze ratios (LO8-6) Selected financial data regarding current assets and current liabilities for Ferris Air and Oceanic Airlines are provided as follows: Oceanic Airlines ($ in millions) Current assets: Cash and cash equivalents Current investments Net receivables Inventory Other current assets Total current assets. Current liabilities: Current debt Accounts payable Other current liabilities Total current liabilities Req 1A Req 1B Ferris Air Req 2A Current Ratio $1,265 3,144 851 565 310 $6,135 Required: 1-a. Calculate the current ratio for Ferris Air and Oceanic Airlines. 1-b. Which company has the more favorable current ratio? 2-a. Calculate the acid-test (quick) ratio for Ferris Air and Oceanic Airlines. 2-b. Which company has the more favorable acid-test ratio? $6,539 2,712 $9,251 Complete this question by entering your answers in the tabs below. Req 2B Ferris Air $5,084 1,391 1,884 428 677 $9,464 $6,674 2,447 1,644 $10,765 Calculate the current…
Selected financial data regarding current assets and current liabilities for Ferris Air and Oceanic Airlines are provided as follows:($ in millions) Ferris Air Oceanic AirlinesCurrent assets:Cash and cash equivalents $1,113 $ 2,791Current investments 1,857 958Net receivables 578 2,156Inventory 469 1,023Other current assets 210 1,344Total current assets $4,227 $ 8,272Current liabilities:Current debt $ 271 $ 1,627Accounts payable 2,209 5,686Other current liabilities 2,170 5,957Total current liabilities…
Question Selected financial data regarding current assets and current liabilities for Ferris Air and Oceanic Airlines are provided as follows: ($ in millions) Ferris Air Oceanic Airlines Current assets: Cash and cash equivalents $1,255 $4,984 Current investments 3,134 1,381 Net receivables 841 1,874 Inventory 555 418 Other current assets 300 667 Total current assets 6,085 9,324 Current liabilities: Current debt 6,661 7,149 Accounts payable 2,702 2,437 Other current liabilities 0 1,634 Total current liabilities 9,363 11,220 Required: 1-a. Calculate the current ratio for Ferris Air and Oceanic Airlines. (Enter your answers in millions. For example, $5,500,000 should be entered as 5.5.) Current Ratio Ferris Air Oceanic air Total current assets $6,085 = 0.650 $9,324 = 0.831 Total current liabilities $9,363 11220 2-a. Calculate the acid-test (quick) ratio for Ferris Air and Oceanic Airlines. (Enter…
Problem 8-9A (Algo) Calculate and analyze ratios (LO8-6) Selected financial data regarding current assets and current liabilities for ACME Corporation and Wayne Enterprises, are as follows: ACME Corporation Wayne Enterprises ($ in millions) Current assets: Cash and cash equivalents Current investments Net receivables Inventory Other current assets Total current assets Current liabilities: Current debt Accounts payable Other current liabilities Total current liabilities Req 1A Req 1B $549 6 738 10,681 1,207 $13,181 Required: 1-a. Calculate the current ratio for ACME Corporation and Wayne Enterprises. 1-b. Which company has the more favorable ratio? 2-a. Calculate the acid-test (quick) ratio for ACME Corporation and Wayne Enterprises. 2-b. Which company has the more favorable ratio? Req 2A Current Ratio $9,121 1,857 1,165 $12,143 Complete this question by entering your answers in the tabs below. Req 2B $335 411 256 9,109 305 $10,416 $4,463 1,111 2,523 $8,097 Calculate the current ratio…
Suppose the following information was taken from the 2022 financial statements of FedEx Corporation, a major global transportation/delivery company. (in millions)20222021Accounts receivable (gross)$ 3,650$ 4,530Accounts receivable (net)3,4004,450Allowance for doubtful accounts25080Sales revenue32,97035,470Total current assets7,1427,304 Answer each of the following questions.(a)Calculate the accounts receivable turnover and the average collection period for 2022 for FedEx. (Round answers to 1 decimal place, e.g. 12.5. Use 365 days for calculation.) Accounts receivable turnoverenter the accounts receivable turnover in times rounded to 1 decimal place timesThe average collection period for 2022enter the average collection period for 2022 in days rounded to 1 decimal place days
Current Attempt in Progress XYZ provided the following financial information: XYZBalance SheetAs of 12/31/19 Assets: Liabilities and Equity: Cash and marketable securities $27,476 Accounts payable and accruals $154,860 Accounts receivable $143,519 Short-term notes payable $21,255 Inventory $212,379 Total current liabilities $176,115 Total current assets $383,374 Long term debt $155,510 Net plant and equipment $602,704 Total liabilities $331,625 Goodwill and other assets $42,422 Common stock $312,719 Retained earnings $384,156 Total assets $1,028,500 Total liabilities and equity $1,028,500 In addition, it was reported that the firm had a net income of: $158,402 and net sales of: $4,272,431 Calculate the following ratios for this firm (Use 365 days for calculation. Round answers to 2 decimal places, e.g.…
The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows:Dec 31 20Y9 Dec 31 20Y8ASSETSCash $ 70,720 $ 47,940Accounts Receivable 207,230 188,190Inventories 298,520 289,850Investments - 102,000Land 295,800 -Equipment 438,600 358,020Accumulated Depreciation-Equipment (99,110) (84,320)Total Assets $ 1,211,760 $ 901,680LIABILITIES AND STOCKHOLDERS' EQUITYAccounts Payable $ 205,700 $ 194,140Accrued Expenses Payable (operating expenses) 30,600 26,860Dividends Payable 25,500 20,400Common Stock, $1 par 202,000 102,000Paid-in Capital; Excess of issue price over par-common stock 354,000 204,000Retained Earnings 393,960 354,280Total Liabilities and Stockholders Equity: $ 1,211,760 $ 901,680Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows:A. Equipment and land were acquired for cashB. There were no disposals of equipment during the year.C. The investments were sold for $91,800 cash.D. The common stock was…
Assume the following information (numbers in millions). Note: You can copy this table directly into Excel. Data Item EBIT ($) 2022 2023 13831 8891 -1082 Interest Expense ($) 113 Operating Assets ($) 34985 36920 Operating Liabilities 25,365 25703 ($) Net Fixed Assets ($) 41421 57002 Debt ($) 6942 10548 Tax Rate (%) 8.3% -50.1% What is free cash flow to equity in 2023? IMPORTANT! It will be very easy to goof up this problem given the negative interest expense and negative tax rate. Remember, if you subtract a negative this turns it into a positive. Hint: It will be so amazingly useful to remember the FCFE extra credit problem. To help, please note that the answer ranges between 1.300 and 2,100.
Selected financial data regarding current assets and current liabilities for Ferris Air and Oceanic Airlines are provided as follows: ($ in millions) Ferris Air Oceanic Airlines Current assets: Cash and cash equivalents $1,255 $4,984 Current investments 3,134 1,381 Net receivables 841 1,874 Inventory 555 418 Other current assets 300 667 Total current assets 6,085 9,324 Current liabilities: Current debt 6,661 7,149 Accounts payable 2,702 2,437 Other current liabilities 0 1,634 Total current liabilities 9,363 11,220 Required: 1-a. Calculate the current ratio for Ferris Air and Oceanic Airlines. (Enter your answers in millions. For example, $5,500,000 should be entered as 5.5.) Current Ratio Ferris Air Oceanic Airlines = = 1-b. Which Airlines has the better current ratio? Ferris Air Oceanic Airlines 2-a. Calculate the acid-test (quick) ratio for Ferris Air and Oceanic…
E9-6 Current Position Analysis Obj. 3 .................. The following data were taken from the comparative balance sheet of Icon Living, Inc., for the years ended December 31, 20Y9 and December 31, 20Y8: Cash Temporary investments Accounts and notes receivable (net) Inventories Prepaid expenses Total current assets Accounts payable Accrued liabilities Total current liabilities ▸ Details Dec. 31, 20Y9 $ 75,000 125,000 250,000 425,000 25,000 $ 900,000 $ 350,000 25,000 $ 375,000 Dec. 31, 2018 $ 50,000 75,000 200,000 305,000 20,000 $ 650,000 $ 230,000 20,000 $ 250,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. b. What conclusions can be drawn from these data?
The comparative balance sheet of Merrick Equipment Co. for Dec. 31, 20Y9 and 20Y8, is:Dec. 31, 20Y9 Dec. 31, 20Y8AssetsCash $70,720 $47,940Accounts receivable (net) 207,230 188,190Inventories 298,520 289,850Investments 0 102,000Land 295,800 0Equipment 438,600 358,020Accumulated depreciation—equipment (99,110) (84,320)Total assets $1,211,760 $901,680Liabilities and Stockholders' EquityAccounts payable (merchandise creditors) $205,700 $194,140Accrued expenses payable (operating expenses) 30,600 26,860Dividends payable 25,500 20,400Common stock, $1 par 202,000 102,000Paid-in capital: Excess of issue price over par—common stock 354,000 204,000Retained earnings 393,960 354,280Total liabilities and stockholders' equity $1,211,760 $901,680The income statement for the year ended December 31, 20Y9, is as follows:Sales $2,023,898Cost of goods sold 1,245,476Gross profit $778,422Operating expenses:Depreciation expense $14,790Other operating expenses 517,299Total operating expenses 532,089Operating…
Exercise 8-17A Calculate and analyze liquidity ratios (LO8-6) Selected financial data regarding current assets and current liabilities for Queen's Line, a competitor in the cruise line industry, is provided: ($ in millions) Current assets: Cash and cash equivalents Current investments Net receivables. Inventory Other current assets Total current assets Current liabilities: Accounts payable Short-term debt Other current liabilities Total current liabilities Current Ratio $ 351 76 204 114 134 $879 Required: 1. Calculate the current ratio and the acid-test ratio for Queen's Line. (Enter your answers in millions, not in dollars. For example, $5,500,000 should be $ 5.5.) Acid-Test Ratio $1,190 689 924 $2,803

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