What company is better in the short term investment RatioAnalysis FormulacurrentCurrentratioassets/CurrentliabilitiesAccount Net sales/Receivab AverageleaccountsTurnove receivable,netAverage 365/Collecti AccountonReceivablePeriodTurnoverInventor Cost ofYgoodsTurnove sold/rDays inInventorcurrentCashDebtCoverageProfitMargin$20,245/ $11.245=1.8$48,750/ $50,450=0.961,750/8100=7.6362.000/4120=87.8365/7.6=48365/87.8=4.1539,900/8,020 4.9727,680/32,500=0.88.020/39,900*365=73.332.500/27,680*365=4284900/11,245+10.300/2=0.4525.900/52.640+50,450/2=0.503,245/61750=0.05013,580/362,000=0.03AverageinventoryAverageinventory/cost ofgoodsold 365net cashprovided byoperatingactivities/averagecurrentliabilityNetincome/net salesAlPanOth da,aim Inc1.8 0.97.6 87.848.024.154.970.8428.50.500.05 0.0373.30.45Interpretation Heading 2TitleSubtitleAssetNet sales/Turnove AverageReturnonAssetsReturnonCommonStockholder'sEquityDebt toAssetsTimesInterestEarnedCashDebtCoverag byefreeCashFlowSubtle Em...Emphasis Intense E...Styles61,750/43,850+41,850/2= 1.441.44 2.25362,000/159,750+161,250/2=2.253,245/41,850=0.077 0.077 0.0813,580/159,750=0.083245-190.14495/13,240+15450=0.1913,580-3850/62480+71,450=0.144900/28,750 26050/2 0.17= 0.17total assetsNetincome/total assetsNet income-Preferreddividend/Averagecommonstockholders1equitynet cashprovidedoperating 25,900/94,500+98,300activities/a /2=0.26veragetotalliabilitynet cash4,900-1,452-495=provided2,953byoperating25,900-10,750-activities-3,850-1 1,300Capitalexpenditure-cashdividends0.262,953 11300StrongQuote

Ratio analysis best to analyse the company and make this seasons as it help to compare to variable…

Analysis Formula Current assets/ Current liabilities Net sales/ 61,750/8100=7.6 362.000/4120=87.8 365/7.6=48 365/87.8-4.15 Ratio current ratio Account Receivab Average le accounts Turnove receivable, net Average 365/ Collecti Account on Receivable $20,245/ $11,245=1.8 $48,750/ $50,450=0.9 Pan Interpret da, ation Inc 1.8 0.9 7.6 87.8 48.02 4.15 AI Oth manninn aim Soooood

Analysis Formula Current assets/ Current liabilities Net sales/ 61,750/8100=7.6 362.000/4120=87.8 365/7.6=48 365/87.8-4.15 Ratio current ratio Account Receivab Average le accounts Turnove receivable, net Average 365/ Collecti Account on Receivable $20,245/ $11,245=1.8 $48,750/ $50,450=0.9 Pan Interpret da, ation Inc 1.8 0.9 7.6 87.8 48.02 4.15 AI Oth manninn aim Soooood

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter6: Receivables And Inventories

Section: Chapter Questions

Problem 6.3MBA

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