Calculate the Efficiency ratio which includes the sales to total assets ratio, operating return on assets, return on assets, ROA Model, return on equity, and ROE Model
Q: It indicates the proportion of debt in relation to resources provided by the owners, a. Debt…
A: Lets understand the basics. Debt to equity ratio is a ratio which compares how much proportionate…
Q: Return on Capiatal employed = O a. Return on Total Assets O b. Return on Equity Oc. Return on…
A: Solution: Return on capital employed = EBIT/ Capital employed Capital employed = Total assets -…
Q: increasing the company's debts on Return on Assets (ROA) and Return on Equity (ROE
A: Debt is the liability incurred by the company by borrowing for its financial needs.
Q: Please calculate the all ratios of companies - Profitability ratios(Profit margin, Return on assets…
A: Since, we answer only up-to three sub-parts, we shall answer first three. Please resubmit a new…
Q: (b) Given a formula for Return on Equity (ROE) as below, evaluate the SIBB's financial efficiency. X…
A: As per our protocol we provide solution to one question only or first three sub-parts only but as…
Q: Required: a. Compute the current ratio b. Quick ratio d. Asset turnover e. Average collection period…
A: Ratio analysis, the foundation of fundamental analysis, helps to gain a deeper insight into the…
Q: In performing a vertical analysis, the base for Selling Expense is.. total current assets. total…
A: Vertical analysis is an analysis of the financial statements of a corporation which helps in the…
Q: Terminology Matching Profitability Ratios Rationalization Return on Assets Ratio Return on Common…
A: Profitability Ratios - Measures of income or operating success of the company for a given period of…
Q: This ratio is used to reflect t profit earning performance firm's assets return on assets net profit…
A: Solution: Profit earnings performance of the company's assets means that how much of the company's…
Q: The investment turnover is the ratio of a. operating income to sales b. sales to invested…
A: Investment is the amount invested in the assets. Turnover is the amount of sales.
Q: The three input ratios (not output) to the DuPont model of financial statement analysis are: a) Net…
A: Du-point Analysis is the method of measuring the performance of the company. It measures the return…
Q: Asset utilization ratios:
A: Asset Turnover ratios are: Fixed Asset Turnover Ratio= SalesFixed Assets Total Asset Turnover Ratio=…
Q: 4. Comment on the company’s ability to utilize its assets and manage its liabilities effectively…
A: Ratios: Ratios help us in effectively analyzing a company's performance for a given period. They can…
Q: Explain the major financial ratios and financial cycles, debt ratio, debt to equity ratio, return on…
A: The below ratios are computed using the 2016 financial statements of Walmart Company.
Q: Profitability ratios include all of the following EXCEPT a.current ratio. b.asset turnover. c.return…
A: The profitability ratios measures the ability of the company to generate income with respect to…
Q: Calculate RETURNED ON INVESTED CAPITAL by referring the pictures of Financial Position and Statement…
A: Please see the next step for the solution
Q: 6.. ratios measure the ability of a firm to earn an adequate eturn on sales, O A) Asset utilization…
A: The ratios which measures the ability of an organization to generate adequate earnings are relative…
Q: The specific financial aspects to be considered with your analysis are: • Profit Margin • Total…
A: Ratio analysis help to understand the company liquidity, solvency and Profitability capacity.
Q: The company’s profitability on each dollar invested in assets is represented by which of the…
A: The correct option is option “C”. Return on assets.
Q: What have been the possible reasons for the changes in Return of Equity (ROEs )? •Decompose the…
A: Common equity means the amount which is held by equity shareholders in a firm. It does not include…
Q: Computing liquidity, working captial and current ratio. Computing measures of profitability, profit…
A: Liquidity ratios emphasizes on the company’s ability to fulfill the current obligations out of the…
Q: Which of the following is NOT a profitability ratio? Select one: a. Return on Equity b. Net Profit…
A:
Q: A)Calculate the following ratios: • Return on Capital Employed (ROCE) • Current Ratio • Gearing…
A: = Earnings before interest and tax ÷ (Total assets - current liabilities) For Riccarton pic: ROCE…
Q: A. Compute the return on average total assets. B. Compute the return on average ordinary…
A: Average total assets refer to the value of assets that are to be recorded at the end of the…
Q: Which of the following ratios measures short-term solvency? a. Current ratio b.…
A: Ratio analysis: It is the financial analysis tool for measuring the profitability, liquidity,…
Q: Which of the following is a measure of profitability?a. Quick (acid-test) ratiob. Net salesc.…
A: Profitability is that position of the company were the revenue earned is over the expenses incurred…
Q: pute the following requirer a. Gross profit rate b. Operating profit margi C. Net profit margin rate…
A: Thank you for posting questions. Since you have posted multiple questions, as per the guideline I am…
Q: Financial Ratios Fully explain the kind of information the following ratios provided about a firm.…
A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…
Q: inancial Statement Analysis Compute for Profitability Ratio with Substantial Analysis: a. Gross…
A: Accounting ratios are those ratios which compare the line items of the balance sheet of company in…
Q: which ratio is of greater interest to the owner-manager, the rate of return on total assets or the…
A: The ratio refers to the measure that determines the relation between two numbers. In accounting, the…
Q: Which one of the following ratios is relevant to assess long-term solvency? A. Current Ratio B.…
A: Since you have asked multiple question, we will solve the first question for you relating to long…
Q: -DO Select all of the formulas below that will correctly get you the Return on Investment. Operating…
A: Return on investment (ROI): This financial ratio evaluates how efficiently the assets are used in…
Q: how value drivers (Return on Equity, Net Profit Margin, and Total Asset Turnover) are related to…
A: Financial statements: Financial statements are the summary of transactions presented in the form of…
Q: Present formulas and examples of the following financial ratios (Financial ratios) a. gross margin…
A: Financial ratios are used to measure the financial performance of a company . Such ratios provide…
Q: a. Return on equity % b. Return on assets % Asset utilization Equity multiplier Profit margin f.…
A: Introduction: Ratio analysis can be defined as quantitative technique that is used by the…
Q: Please answer with explanations asset turnover, return on total assets, return on stockholders…
A: Asset Turnover ratio represents the contribution of assets in revenue creation. Return on Assets…
Q: sing the information from 27A prepare the following ratios: gross profit margin profit margin…
A: Accounting ratios are determined to know the efficiency, effectiveness and performance of the firm.…
Q: 1- Calulate the following liquidity ratio: a. Current Ratio b. Quick Ratio 2-Calulate the…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: The ratio is the best overall measure of management's performance O a. Activity ratio b. Debt-equity…
A: Operating Efficiency Ratio- Operating Profit Margin/ Operating Efficiency ratio refers to the ratio…
Q: MODIFIED MATCHING TYPE: From the financial ratios listed in the box, group the financial ratios as…
A: Profitability ratio determines the profitability of the entity over a period of time with regard to…
Q: ______ ratios are used to measure the speed in which various assets are converted into sales or cash
A: A firm can convert its assets into cash. Those assets that can be converted into cash within a short…
Q: Explain Net Profit Margin, Return on Equity, Asset Turnover?
A: Here in this question we are require to understand the meaning of net profit margin, return on…
Q: The ratio sales to working capital is a measure of
A: Working capital turnover ratio is a measure to determine how efficiently a Company's working…
Q: Return on equity measure expected rate on investment of : Equity Assets and equity Both of above
A: Lets understand the meaning of return on equity. Return on equity indicates the how much net income…
Q: The ownership ratio measures financial leverage or the ratio of owner's equity to total assets total…
A:
Q: a. Return on equity b. Total assets turnover c. Return on assets d. Current ratio e. Receivables…
A: a. Return on equity = Net Income / Shareholders' Equityb. Total assets turnover = Sales / Total…
Q: Weighted average cost of capital is the combined cost of capital using a capital mix. The capital…
A: a. Market value of debt and equity Market values should always be used for calculating cost of…
Q: In a DuPont analysis, what are the components of return on assets?a. Net Profit Margin Ratio and…
A: Formula of Return on assets in Du Pont analysis is as follows:Return on assets=Net profit…
Q: Interpret the results: • Return on equity • Return on assets • Gross profit margin • Operating…
A: The financial ratios are used as a measure of the financial health of the company.
Q: Which of the following is the correct formula for calculating rate of return on total assets? A.…
A: Return on assets: Return on assets is the financial ratio that determines the amount of net income…
Step by step
Solved in 2 steps with 2 images
- Use the below information to answer the following questions: 20202021Sales$11,573$12,936Depreciation 1661 1736Cost of goods sold 3979 4707Other Expenses 846 924Interest Expense 776 926Cash 6067 6466Accounts Receivables 8034 9427Short-term Notes Payable 1171 1147Long-term debt 20,320 24,696Net fixed assets 50,888 54,273Accounts Payable 4384 4644Tax rate 26% 34%Inventory 14,283 15,288Payout ratio 33% 30% A. Create the Balance Sheets for 2020 & 2021.Use the below information to answer the following questions: 20202021Sales$11,573$12,936Depreciation 1661 1736Cost of goods sold 3979 4707Other Expenses 846 924Interest Expense 776 926Cash 6067 6466Accounts Receivables 8034 9427Short-term Notes Payable 1171 1147Long-term debt 20,320 24,696Net fixed assets 50,888 54,273Accounts Payable 4384 4644Tax rate 26% 34%Inventory 14,283 15,288Payout ratio 33% 30% A. Create the Income Statements for 2020 and 2021 (including dividends paid and retained earnings).ShafNita Sdn. Bhd. Statement of Financial Position as at 31 December2019 2020RM RM RM RM Non Current AssetsBuilding 100,000 100,000Fixtures less accumulated depreciation 3,600 4,000Van less accumulated depreciation 7,840 14,800111,440 118,800 Current AssetInventory 11,200 24,800Trade account receivable 12,800 16,400Bank 1,800 -Cash 440 400 26,240 41,600Total assets 137,680 160,400Finance by:Capital account:Balance at 1 January 74,080 105,080Add: Net profit for the year 70,400 42,320Cash introduced - 20,000144,480 167,400Less: Drawings (39,400) (43,200)105,080 124,200 Non Current LiabilitiesLoan (repayable in 10 years time) 20,000 30,000Current LiablitiesAccount Payable 12,600 6,012Bank overdraft - 188Retained earnings 32,600 36,200Total liabilities and equity 137,680 160,400 Additional information at 31 December 2020: Fixtures bought in 2020 cost RM800. Van bought in 2020 cost RM11,000. Required: Prepare statement of cash flow for ShafNita Sdn. Bhd. for the year ended 31 December…
- SME Balance Sheet 2021 2020 Assets (in millions) Cash 85.960 56.460 Receivables 89.560 80.670 Inventories 55.750 41.260 Other Current Assets 9.950 6.760 Total Current Assets 241.220 185.150 Net Property, Plant, and Equipment 78.970 68.930 Goodwill and Other Intangible Assets 103.110 104.360 Other Non-Current Assets 6.900 4.200 Total Assets 430.200 362.640 Total Liabilities and Shareholders' Equity Payables 83.240 57.48 Current Debt 2.700 2.64 Total Current Liabilities 85.940 60.120 Long-Term Debt 122.000 119.62 Other Liabilities 21.880 22.58 Total Liabilities 229.820 202.320 Common Stock 200.380 160.32 Total Equity 200.38 160.32 Total Liabilities and Equity 430.200 362.640 INCOME STATEMENT 2021 Total Revenue (M) 488.10…SME Balance Sheet 2021 2020 Assets (in millions) Cash 85.960 56.460 Receivables 89.560 80.670 Inventories 55.750 41.260 Other Current Assets 9.950 6.760 Total Current Assets 241.220 185.150 Net Property, Plant, and Equipment 78.970 68.930 Goodwill and Other Intangible Assets 103.110 104.360 Other Non-Current Assets 6.900 4.200 Total Assets 430.200 362.640 Total Liabilities and Shareholders' Equity Payables 83.240 57.48 Current Debt 2.700 2.64 Total Current Liabilities 85.940 60.120 Long-Term Debt 122.000 119.62 Other Liabilities 21.880 22.58 Total Liabilities 229.820 202.320 Common Stock 200.380 160.32 Total Equity 200.38 160.32 Total Liabilities and Equity 430.200 362.640 INCOME STATEMENT 2021 Total Revenue (M) 488.10…SME Balance Sheet 2021 2020 Assets (in millions) Cash 85.960 56.460 Receivables 89.560 80.670 Inventories 55.750 41.260 Other Current Assets 9.950 6.760 Total Current Assets 241.220 185.150 Net Property, Plant, and Equipment 78.970 68.930 Goodwill and Other Intangible Assets 103.110 104.360 Other Non-Current Assets 6.900 4.200 Total Assets 430.200 362.640 Total Liabilities and Shareholders' Equity Payables 83.240 57.48 Current Debt 2.700 2.64 Total Current Liabilities 85.940 60.120 Long-Term Debt 122.000 119.62 Other Liabilities 21.880 22.58 Total Liabilities 229.820 202.320 Common Stock 200.380 160.32 Total Equity 200.38 160.32 Total Liabilities and Equity 430.200 362.640 INCOME STATEMENT 2021 Total Revenue (M) 488.10…
- SME Balance Sheet 2021 2020 Assets (in millions) Cash 85.960 56.460 Receivables 89.560 80.670 Inventories 55.750 41.260 Other Current Assets 9.950 6.760 Total Current Assets 241.220 185.150 Net Property, Plant, and Equipment 78.970 68.930 Goodwill and Other Intangible Assets 103.110 104.360 Other Non-Current Assets 6.900 4.200 Total Assets 430.200 362.640 Total Liabilities and Shareholders' Equity Payables 83.240 57.48 Current Debt 2.700 2.64 Total Current Liabilities 85.940 60.120 Long-Term Debt 122.000 119.62 Other Liabilities 21.880 22.58 Total Liabilities 229.820 202.320 Common Stock 200.380 160.32 Total Equity 200.38 160.32 Total Liabilities and Equity 430.200 362.640 INCOME STATEMENT 2021 Total Revenue (M) 488.10…SME Balance Sheet 2021 2020 Assets (in millions) Cash 85.960 56.460 Receivables 89.560 80.670 Inventories 55.750 41.260 Other Current Assets 9.950 6.760 Total Current Assets 241.220 185.150 Net Property, Plant, and Equipment 78.970 68.930 Goodwill and Other Intangible Assets 103.110 104.360 Other Non-Current Assets 6.900 4.200 Total Assets 430.200 362.640 Total Liabilities and Shareholders' Equity Payables 83.240 57.48 Current Debt 2.700 2.64 Total Current Liabilities 85.940 60.120 Long-Term Debt 122.000 119.62 Other Liabilities 21.880 22.58 Total Liabilities 229.820 202.320 Common Stock 200.380 160.32 Total Equity 200.38 160.32 Total Liabilities and Equity 430.200 362.640 INCOME STATEMENT 2021 Total Revenue (M) 488.10…SME Balance Sheet 2021 2020 Assets (in millions) Cash 85.960 56.460 Receivables 89.560 80.670 Inventories 55.750 41.260 Other Current Assets 9.950 6.760 Total Current Assets 241.220 185.150 Net Property, Plant, and Equipment 78.970 68.930 Goodwill and Other Intangible Assets 103.110 104.360 Other Non-Current Assets 6.900 4.200 Total Assets 430.200 362.640 Total Liabilities and Shareholders' Equity Payables 83.240 57.48 Current Debt 2.700 2.64 Total Current Liabilities 85.940 60.120 Long-Term Debt 122.000 119.62 Other Liabilities 21.880 22.58 Total Liabilities 229.820 202.320 Common Stock 200.380 160.32 Total Equity 200.38 160.32 Total Liabilities and Equity 430.200 362.640 INCOME STATEMENT 2021 Total Revenue (M) 488.10…
- SME Balance Sheet 2021 2020 Assets (in millions) Cash 85.960 56.460 Receivables 89.560 80.670 Inventories 55.750 41.260 Other Current Assets 9.950 6.760 Total Current Assets 241.220 185.150 Net Property, Plant, and Equipment 78.970 68.930 Goodwill and Other Intangible Assets 103.110 104.360 Other Non-Current Assets 6.900 4.200 Total Assets 430.200 362.640 Total Liabilities and Shareholders' Equity Payables 83.240 57.48 Current Debt 2.700 2.64 Total Current Liabilities 85.940 60.120 Long-Term Debt 122.000 119.62 Other Liabilities 21.880 22.58 Total Liabilities 229.820 202.320 Common Stock 200.380 160.32 Total Equity 200.38 160.32 Total Liabilities and Equity 430.200 362.640 INCOME STATEMENT 2021 Total Revenue (M) 488.10…SME Balance Sheet 2021 2020 Assets (in millions) Cash 85.960 56.460 Receivables 89.560 80.670 Inventories 55.750 41.260 Other Current Assets 9.950 6.760 Total Current Assets 241.220 185.150 Net Property, Plant, and Equipment 78.970 68.930 Goodwill and Other Intangible Assets 103.110 104.360 Other Non-Current Assets 6.900 4.200 Total Assets 430.200 362.640 Total Liabilities and Shareholders' Equity Payables 83.240 57.48 Current Debt 2.700 2.64 Total Current Liabilities 85.940 60.120 Long-Term Debt 122.000 119.62 Other Liabilities 21.880 22.58 Total Liabilities 229.820 202.320 Common Stock 200.380 160.32 Total Equity 200.38 160.32 Total Liabilities and Equity 430.200 362.640 INCOME STATEMENT 2021 Total Revenue (M) 488.10…Balance sheet extracts as at 31/12/2019 & 31/12/2020 2019(RO) 2020(RO) Current assets Inventories 6500 4500 Account receivables 3400 5300 Prepaid Expenses 1220 1550 Current liabilities Account payables 4320 3450 Expense payables 3100 4700 The operating profit for 2020 was RO 22500 and the depreciation for the year was RO7650 The profit on sale of fixed assets RO 4200 . Amortisation of intangible assets OMR 550. Calculate cash flow from operating activity