Ca) Calculate liquidity ratios and interpret your answer
Q: Calculate the Efficiency ratio which includes the sales to total assets ratio, operating return on…
A: The efficiency ratio is one of the most important measure to understand how well the company has…
Q: (D/D+E)kd(1-T) + (E/D+E)k2 is also known as
A: The answer and the explanation is provided below:
Q: Define Balance sheet ratios
A:
Q: COMPUTE FOR THE LIQUIDITY, SOLVENCY, EFFICIENCY AND PROFITABILITY USING THE DIFFERENT FORMULAS IN…
A:
Q: List TWO (2) factors that contribute to it LIQUIDITY
A: Liquidity means how easily an asset or a security can be converted into cash without even affecting…
Q: Dividing quick assets by current liabilities is the calculation for the a.ratio of liabilities to…
A: Ratio analysis is a method of measuring the financial position of the organization with different…
Q: Briefly explain the difference between liquidity, solvency, and profitability analysis.
A: Financial ratios are the metrics used to evaluate the liquidity, profitability, solvency and overall…
Q: Expressing accounts receivable as a percentage of total assets is an example ofa. ratio analysis.b.…
A: Accounts receivable is an asset account. It is reported in the balance sheet under the assets…
Q: Explain an example how to calculate debt ratio.
A: Debt Ratio: Debt ratio is the percentage of assets of the company that are procured or financed…
Q: Discus each of the following ratios as used in fundamental analysis and what each ratio reveal.…
A: Since we answer up to 3 sub-parts, we'll answer the first 3. Please resubmit the question and…
Q: Problem 2 What are the three methods of expressing horizontal financial statement analysis? What is…
A:
Q: Summarize some of the Key Financial Ratios?
A: Financial ratios show the financial condition of the company. Following are types of financial…
Q: Calculate the liquidity- Cash ratio -Quick ratio…
A: Current ratio is a financial metric that tells about the short term liquidity position of a company…
Q: Define each of the following terms:b. Spontaneous liabilities; profit margin; payout ratio
A: Spontaneous liabilities are an organization's obligations that are quickly accumulated because of…
Q: Which of the following is one measure of liquidity? a. Quick ratio b. Profit margin c.…
A: Introduction: Liquidity: Liquidity means which can be easily converted in to the cash with in short…
Q: Explain the importance of financial ratio.
A: Financial ratio is referred to as the relative magnitude of the 2 chosen numerical values, which…
Q: the liquidity- cash ratios, quick ratios and current ratios.
A: Current Ratio = Current Assets/Current Liabilities 2019 = 12,837,699/5,735,569 = 2.238 2020 =…
Q: Discuss the importance and differences of liquidity, solvency and profitability.
A: Liquidity is the ability to turn an asset into cash or cash equivalent with ease. Solvency is the…
Q: Which of the following ratios is used to analyze liquidity?a. Earnings per share.b.…
A: Liquidity is the ability of the organisation to pay off its short term obligations.
Q: Explain why financial analyst are interested in liquidity and solvent ratios
A: Liquidity Ratios help in determining the ability to pay its short-term obligations, whereas Solvency…
Q: What are the different types of liquidity ratios in accounting?
A: Liquidity measures: Liquidity measures denote a company’s capacity to meet its current liabilities.…
Q: What do the Liquidity ratios show?
A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…
Q: Which one of the following formulas is correct? O i) Profit margin = EBIT / Sales O ii) ROA = ROE /…
A: ROA = ROE / Equity Multiplier ROA = Net Income / Total Assets ROE = Net Income / Shareholders'…
Q: What is Liquidity-stage Financing? Please give an explaination in 1 paragraph!
A: A startup or venture goes through various stages of finance throughout its life starting from…
Q: Draw and Label diagram explains a relation between Liquidity, profitability, and with the primary…
A: Liquidity is basically the ability of the firm/company to meet the bills of the company and the cash…
Q: Define the term s liquidity position?
A: Definition: Liquidity: Liquidity is the capability of a company to pay the short-term liabilities…
Q: The ratio quantifies the degree of available liquid assets is O Liquidity coverage ration Temporay…
A: Degree of available liquid assets means how much liquid assets available with the firm
Q: n equity/capital O D.
A: To find the correct option as,
Q: Describe the rules of accounting rate of return.
A: The accounting rate of return (ARR) is the percentage rate of return expected on investment or asset…
Q: what are liquidity ratios, leverage ratios, profitability ratios, and market measure rat
A: Ratios are calculated in order to identify the ability of the company from various parameters.
Q: Calculate the liquidity ratios and current ratios?
A: Liquidity ratios include quick ratio, current ratio, and cash ratio. The Quick ratio is the…
Q: a. What is Liquidity Ratio? b. What is Asset Management Ratio
A: Solution of both the concepts are given below
Q: facilitates the comparison of financial noriod t moth
A: Option a is wrong because historical cost concept suggests to record of assets and liabilities at…
Q: Define liquidity, financial stability, and solvency.
A: Accounting is used to keep the records of business transaction up to date in the process of…
Q: Define liquidity ratios.
A: Liquidity Ratios: The term Liquidity refers to the ability of the company to meet its current…
Q: Which of these are not the method of financial statement analysis Select one: O a. Trend Analysis b.…
A:
Q: How does measure liquidity?
A: The transactions of the company will be analyzed by the management, and it will be recorded in…
Q: Explain the major financial ratios and financial cycles, debt ratio, debt to equity ratio, return on…
A: Step 1 Hello. Since your question has multiple parts, we will solve first question for you. If you…
Q: Use the attached information to complete the ratio analysis. The Ratio Analysis is for Liquidity,…
A: Ratio analysis is a quantitative method of gaining insight into a company's liquidity, operational…
Q: liquidity ratio
A: INTRODUCTION It is a ratio which the capability of a company to pay off its debts as and when they…
Q: Identify two ratios to use to analyze a firm’s liquidity position, andwrite out their equations.
A: Ratio analysis are generally used for various purposes which can include liquidity, solvency,…
Q: What are the siginificance of financial ratios (i.e. current ratio; DSO; TATO; profit margin; ROA;…
A: Financial ratios are relationships obtained from the financial ratios of a company.There are several…
Q: C. Liqu
A: Answer: The statement of financial position is useful for analyzing all of the following except…
Q: What is then Free Cash Flow to Equity ratio
A: The ratio analysis helps to analyze the financial statements of the business with respect to assets,…
Step by step
Solved in 4 steps
- Pleasantville Company had the following balance sheet on January 1. Pleasantville CompanyBalance SheetJanuary 1 1Cash$175,000.00Accounts Payable$57,000.002Inventory157,000.00Notes Payable250,000.003Property, Plant, and Equipment200,000.00Mortgage Payable150,000.004Patent25,000.00Retained Earnings100,000.005$557,000.00$557,000.00 On January 2, Carrs Company came to an agreement to purchase Pleasantville by acquiring all of its outstanding shares for $575,000 in cash. On that date in time, the fair value of their inventory was $150,000, and the fair value of the equipment was $225,000. The book value equals the fair value for all other accounts listed.Required:1. Compute the goodwill associated with the purchase of Pleasantville.2. Prepare the journal entry necessary at January 2, to record the acquisition of Pleasantville.May I ask for an explanation and solution to the question for a better understanding. Thank you! Selected information for Cain Corp. for the year ended December 31, 2021 are as follows: Average days' sales in inventories = 124; Average days' sales in accounting receivable = 48. The average number of days in the operating cycle for 2021 was: a. 172 b. 124 c. 86 d. 76The following items were excerpted from Poeltl, Inc.'s balance sheets: December 31, 2023December 31, 2022Cash$86,300$59,000Accounts receivable65,60070,600Inventory157,000150.300Property and equipment794,500745,400Accumulated depreciation(184,000)(168,200)Accounts payable61,00050,600Wages payable20,40023,000 Poeltl's 2023 income statement showed net income of $463,000, depreciation expense of $57,000, and a gain on disposal of equipment of $16,000. On Poeltl's 2023 statement of cash flows, how much is Net Cash Provided by Operating Activities?
- Required information Skip to question [The following information applies to the questions displayed below.] Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 33,973 $ 39,712 $ 40,150 Accounts receivable, net 89,900 62,100 50,700 Merchandise inventory 110,500 84,500 52,000 Prepaid expenses 10,941 10,424 4,461 Plant assets, net 319,214 289,926 250,289 Total assets $ 564,528 $ 486,662 $ 397,600 Liabilities and Equity Accounts payable $ 143,379 $ 83,891 $ 53,533 Long-term notes payable secured bymortgages on plant assets 108,254 114,171 89,627 Common stock, $10 par value 162,500 162,500 162,500 Retained earnings 150,395 126,100 91,940 Total liabilities and equity $ 564,528 $ 486,662 $ 397,600 The…Required information Skip to question [The following information applies to the questions displayed below.] Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 33,973 $ 39,712 $ 40,150 Accounts receivable, net 89,900 62,100 50,700 Merchandise inventory 110,500 84,500 52,000 Prepaid expenses 10,941 10,424 4,461 Plant assets, net 319,214 289,926 250,289 Total assets $ 564,528 $ 486,662 $ 397,600 Liabilities and Equity Accounts payable $ 143,379 $ 83,891 $ 53,533 Long-term notes payable secured bymortgages on plant assets 108,254 114,171 89,627 Common stock, $10 par value 162,500 162,500 162,500 Retained earnings 150,395 126,100 91,940 Total liabilities and equity $ 564,528 $ 486,662 $ 397,600 The…For item 5. An SME has the following informationRetained Earnings P 2,400Transactions during the yearRevenues 5,000Dividend Income 800Dividend income and other expenses 3,200Dividend Declared P 350Additional information:• During the year, the SME changed the cost flow for its inventories from the FIFO method to theweighted average.FIFO AverageJan. 1 P 3,200 P 2,600December 31 5,300 6,4005. If the SME opts present a statements of income and retained earnings, the bottom line in thestatement shows an amount equal toa. P2,600 b. P2,850 c. P4,550 d. P4,050
- E23.10B (L0 1,4) (Classification of Transactions) Following are selected balance sheet accounts of BioLazer Corp. at December 31, 2020 and 2019, and the increases or decreases in each account from 2019 to 2020. Also presented is selected income statement information for the year ended December 31, 2020, and additional information. Increase Selected balance sheet accounts 2020 2019 (Decrease)AssetsAccounts receivable $154,000 $120,000 $34,000Property, plant, and equipment 631,000 581,000 50,000Accumulated…6. The following trial balance was extracted from the books of Fasuha Trading as at 31 December 2020. Particulars Debit RM Credit RM Office equipment 12,250 Motor vehicles 9,150 Furniture 3,600 Accumulated depreciation as at 1 January 2020: Office equipment Motor vehicles Furniture 2,450 1,373 1,060 Account receivables and account payables 6,860 3,632 Capital 29,608 6% loan to Rara 2,500 Purchases and sales 19,110 31,560 Discount 215 175 Advertising 4,250 Cash in hand 1,630 Provision for doubtful debts 300 Commission received 740 6% loan from Afina Bank (taken from 1 May 2020) 8,000 Rent 1,200 700 Drawings 1,900 Maintenance and petrol 1,260 Staff’s wages 4,005 Insurance 1,000 Cash at bank 5,270 Carriage inwards 210 Carriage outwards 250 Telephone and electricity…18. Marriage Company’s trial balance reflected the following account balances on December 31, 2021: Cash 400,000 Trade receivable 1,500,000 Inventory, including inventory expected in the ordinary course of operations to be sold beyond 12 months amounting to P800,000 1,200,000 Prepaid insurance 240,000 Financial assets at fair value through profit or loss 300,000 Financial assets at fair value through OCI 600,000 Financial assets at amortized cost 1,000,000 Deferred tax asset 150,000 Bank overdraft 250,000 Machinery 800,000 Accumulated depreciation 200,000 Noncurrent asset held for sale – building 650,000 Land used as a plant site 920,000 How much is the total current assets for the year ended December 31, 2021? Group of answer choices 4,040,000 4,290,000 3,640,000 3,490,000
- CC18 The balance sheet and income statement of Cookie & Coffee Creations Inc. for its first year of operations, the year ended October 31, 2024, follows. COOKIE & COFFEE CREATIONS INC. Balance Sheet October 31, 2024 Assets Current assets Cash $28,355 Accounts receivable 2,860 Inventory 15,750 Prepaid rent 5544 $52,509 Property, plant, and equipment Equipment $87,736 Accumulated depreciation—equipment (8,668) 79,068 Total assets $131,577 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $5,093 Income taxes payable 16280 Dividends payable 616 Salaries and wages payable 1,980 Interest payable 220 Notes payable—current portion 3,520 $27,709 Long-term liabilities Notes payable—long-term portion 5,280 Total liabilities 32,989…CC18 The balance sheet and income statement of Cookie & Coffee Creations Inc. for its first year of operations, the year ended October 31, 2024, follows. COOKIE & COFFEE CREATIONS INC. Balance Sheet October 31, 2024 Assets Current assets Cash $28,355 Accounts receivable 2,860 Inventory 15,750 Prepaid rent 5544 $52,509 Property, plant, and equipment Equipment $87,736 Accumulated depreciation—equipment (8,668) 79,068 Total assets $131,577 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $5,093 Income taxes payable 16280 Dividends payable 616 Salaries and wages payable 1,980 Interest payable 220 Notes payable—current portion 3,520 $27,709 Long-term liabilities Notes payable—long-term portion 5,280 Total liabilities 32,989…19 Marriage Company’s trial balance reflected the following account balances on December 31, 2021: Cash 400,000 Trade receivable 1,500,000 Inventory, including inventory expected in the ordinary course of operations to be sold beyond 12 months amounting to P800,000 1,200,000 Prepaid insurance 240,000 Financial assets at fair value through profit or loss 300,000 Financial assets at fair value through OCI 600,000 Financial assets at amortized cost 1,000,000 Deferred tax asset 150,000 Bank overdraft 250,000 Machinery 800,000 Accumulated depreciation 200,000 Noncurrent asset held for sale – building 650,000 Land used as a plant site 920,000 How much is the total noncurrent assets for the year ended December 31, 2021? Group of answer choices 2,670,000 3,920,000 3,270,000 3,320,000