BE14.6 (LO 2) (Calculate and evaluate liquidity.) Selected Onancial data for Shumway Ltd. are shownbelow. (a) For each of 2024 and 2023, calculate the (1) current ratio, (2) receivables turnover ratio, and(3) inventory turnover ratio. (b) Based on these ratios, what conclusion(s) can be drown about the com-pany's liquidity?Accounts receivable (gross)Inventory2024S 850,0002023$ 750,0002022$ 650,0001,020,000Total current assetsTotal current liabilitiesCredit salesCost of goods sold2,100,000980,0002,000,000840,0001,700,0001,000,0001,100,0001,250,0006.420,0006.240.0005,430,0004,540,0004,550,0003,950,000of Onlimus Ltd: intro- BB14.6 (LO 2) (Calculate and vvaluate liquidity:) Selected Inancial data for Shumway Lid. are shownbelow, (a) For each of 2024 and 2023, calculate the (1) current ratio. (2) receivables turnoves rario,and (3) inventary turnover ratio. (b) Based on these ratios, what conclusion(s) can be drown aboutthe company's liquidity? \table[[, 2024, 2023,2022], [Accounts receivablo (gross), 5850,000, &750,000,$650,000

1. Current Ratio2024: 2.102023: 1.82 2. Receivables Turnover Ratio2024: 8.03 times2023: 8.91 times…

Answered: BE14.6 (LO 2) (Calculate and evaluate…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

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

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Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $119.70 on December 31, 20Y8 Instructions Ratio of fixed assets to long-term liabilities
How should the company respond to the ongoing situation to mitigate risk of failing the working capital given the following financial ratio? 1. Liquidity ratio : current ratio: 2.61xquick ratio: 2.56cash ratio: 0.85 2. Accounts receivable turnover: 4.08Ave collection period: 89.46 days 3. Inventory turnover: 38.76ave age of inventory: 9.42 4. Average payable turnover: 1.04ave payment period: 350.96 Note: Their working capital is 22,887,683 Current asset (37,127,683) - current liabilities (14,260,065) = 22,887,683
Choose the correct answer and pls provide the formula A Company’s net accounts receivable were P250,000 as of December 31, 2018, and P300,000 as of December 31, 2019. Net cash sales for 2019 were P100,000. The accounts receivable turnover for 2019 was 5.0. What were the Company’s total net sales for 2019? *a. P1,175,000.00b. P1,275,000.00c. P1,375,000.00d. P1,475,000.00e. P1,575,000.00
Assume that the Accounts receivables, notes receivables, cash balance and inventory of the company is OMR 500, OMR 700, and OMR 600 and OMR 700, respectively. The equity and total liabilities are OMR 2000 and OMR7000 respectively. From the following given options identify the fixed assets of the company a . OMR 2500 b . OMR 6500 c None of the given options d . OMR 9000
Comparable balance sheets are presented below:Dec. 31, 2015 Dec. 31, 2014AssetsCash 1.2 1.9Accounts Receivable 0.4 0.3Inventory 1.3 1.0Property, Plant & Equipmen 6.0 3.0Less: Accumulated Depreciation (0.8) (0.4)8.1 5.8Liabilities & Stockholder's EquityAccounts Payable 2.6 2.1Dividends Payable - -Bonds Payable 4.4 2.8Common Stock, $1 Par Value 0.2 0.1Paid-in Capital in Excess of Par Value 3.2 2.2Retained Earnings (2.3) (1.4)8.1 5.8Additional Information:1. The change in PP&E represent cash expenditures for a new factory2. There were no disposals of PP&E during the year3. There were no dividends declared during the year4. The common stock was issued for cash5. A review of the income statement noted a gross profit margin of 20% and Research & Development costs of $0.7 for the yearRequired:1. Prepare a statement of cash flows using the indirect method2. Is the operating cash flow sustainable?3. What are the major sources and uses of cash?4. How are the operations being…
Comparable balance sheets are presented below:Dec. 31, 2015 Dec. 31, 2014AssetsCash 1.2 1.9Accounts Receivable 0.4 0.3Inventory 1.3 1.0Property, Plant & Equipmen 6.0 3.0Less: Accumulated Depreciation (0.8) (0.4)8.1 5.8Liabilities & Stockholder's EquityAccounts Payable 2.6 2.1Dividends Payable - -Bonds Payable 4.4 2.8Common Stock, $1 Par Value 0.2 0.1Paid-in Capital in Excess of Par Value 3.2 2.2Retained Earnings (2.3) (1.4)8.1 5.8Additional Information:1. The change in PP&E represent cash expenditures for a new factory2. There were no disposals of PP&E during the year3. There were no dividends declared during the year4. The common stock was issued for cash5. A review of the income statement noted a gross profit margin of 20% and Research & Development costs of $0.7 for the yearRequired:1. Prepare a statement of cash flows using the indirect method ANSWER : Net Profit (0.90) WHY IS THE NET PROFIT .90 PLEASE EXPLAIN
Below are Laiho Industries’ 2017 and 2018 balance sheet items: 2018 2017 Cash $ 102,850.00 $ 89,725.00 Accounts Receivable $ 103,365.00 $ 85,527.00 Long-Term Debt $ 76,264.00 $ 63,914.00 Accounts Payable $ 30,761.00 $ 23,109.00 Common Stock (total value) $ 100,000.00 $ 90,000.00 Notes Payable $ 16,717.00 $ 14,217.00 Net Fixed Assets $ 67,165.00 $ 42,436.00 Accruals $ 30,477.00 $ 22,656.00 Inventories $ 38,444.00 $ 34,982.00 Retained Earnings $ 57,605.00 $ 38,774.00 Sales for 2018 were $455,150, and EBITDA was 15% of sales. Furthermore, depreciation and amortization were 11% of net fixed assets, interest was $8,575, the corporate tax rate was 40%, and Laiho pays 40% of its net income as dividends. Given this information, construct the firm’s 2018…
How can I translate the following balance sheet using the current-noncurrent method and the monetary nonmonetary method when: re-evaluates from $0.15 = CNY1 to $0.1875 = CNY1 re-evaluates from $0.15 = CNY1 $0.1125 = CNY1 Shanghai Corporation Balance Sheet (000's CNY) Assets Liabilities Cash 5,000 Acc. Payable 21,000 Acc. Receivables 14,000 Long-Term Debt 27,000 Inventories (cost = 24,000) 22,000 Fixed Assets, net 39,000 Stockholder's equity 32,000 Total Assets 80,000 Total Liab & SE 80,000 Thanks
The data listed below are taken from a balance sheet of Trident Corporation at December 31, 2018. Someamounts, indicated by question marks, have been intentionally omitted.($ in thousands)Cash and cash equivalents $ 239,186Short-term investments 353,700Accounts receivable (net of allowance) 504,944Inventories ?Prepaid expenses (current) 83,259Total current assets 1,594,927Long-term receivables 110,800Property and equipment (net) ?Total assets ?Notes payable and short-term debt 31,116Accounts payable ?Accrued liabilities 421,772Other current liabilities 181,604Total current liabilities 693,564Long-term debt and deferred taxes ?Total liabilities 956,140Shareholders’ equity 1,370,627Required:1. Determine the missing amounts.2. Prepare Trident’s classified balance sheet.
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Some selected financial statement items belonging to PXR Company are given in the table below. According to this information, which of the following is Return on Assets (ROA) in 2021? Receivables 18,500 Total Assets 120,000 Current Liabilities 42,000 total liabilities 75,000 Profit after Tax 15,000 Select one: a. The correct answer not available b. 0.205 c. 0.137 d. 0.150 e. 0.125

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