Calculate the financial ratios of Spinneys in 2022 and 2021. Analyze the change between the years 2022 and 2021 in terms of financial ratios. Which financial ratios would you check to evaluate the performance of inventory management and cash management? Which year is better in terms of inventory management and cash management? Q4) Consider the financial statement of Spinneys given in the table below.SpinneysIncome StatementNet operating revenuesCost of goods soldGross ProfitSelling, general and administrative expensesOperating incomeInterest expenseOther income (loss)- netIncome before taxesIncome taxesOther expensesNet incomeBalance SheetAssetsCash and cash equivalentsShort term investmentsNet receivablesInventoriesTotal current assetsProperty, plant and equipmentGoodwillOther assetsTotal assetsLiabilities and Stockholder EquityAccounts payableShort-term debtOther current liability202281200+1000*Groupnumber61500+1000*Groupnumber20222130016500202253001000600500020007003400210050014007000+200*Groupnumber10200210003800130034700107001500600202181400614002060016100510010006004700200060032002021200050013007500103001970036001300332002021101002100600

Current ratio refers to the one of the financial ratio which is computed in order to evaluate the…

Answered: cial ratios of Spinneys in 2022 and…

cial ratios of Spinneys in 2022 and 2021. Analyze the change between the years 2022 and 2021 in terms of financial ratios. Which financial ratios would you check to evaluate the perform

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 32MCQ

See similar textbooks

Related questions

Q: Questions 2 and 3 are based on the following: Several years ago, Roel and Jek formed RJ Partnership.…

Q: Based on the following data, what is the amount of quick assets? Accounts payable $30,200…

A: Quick Assets - Quick Assets are the assets which can be converted into cash very quickly. Those…

Q: On January 1, 2020, Portland Company acquired all of Salem Company's voting stock for $12,800,000 in…

A: Retained Earnings: - Retained earnings refers to the portion of the profit that is not distributed…

Q: 15. Katherine and Christopher Turner were married in 2007. After a serious argument, Christopher…

A: 15. Christopher moved out of the family home on July 21, 2021, and lived alone in an apartment for…

Q: Hart, an individual, bought an asset for $500,000 and has claimed $100,000 of depreciation…

A: When an asset is sold, it leads to either gain or loss for the seller. When the amount realized from…

Q: High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company…

A: Answer - “Since you have posted a question with multiple sub-parts, we will solve first three…

Q: The Perez Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last…

A: contribution margin is calculation by deducting variable cost from sale calculation of selling price…

Q: As a general rule, professional employees in a CPA firm who are not covered members and their…

A: Codes of Professional Conduct and Bylaws applicable for CPA professional and their professional…

Q: Compute and show solutions for the: Direct materials variance Direct labor variance Variable…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts…

Q: The computer workstation furniture manufacturing that Santana Rey started is progressing well. As of…

A: >There are two methods of cost accumulation: #1: Process Costing, where each process has its…

Q: 10. A, B, and C are partners and share profits and losses as follows: Salaries of P40,000 to A:…

A: As per the given information: Net income before salaries and bonus - P140,000Salaries - P40,000 to…

Q: Given the following projected contribution income statement for the coming year: Sales (100 units)…

A: Contribution margin=Sales-Variable costsOperating income=Contribution margin-Fixed costs

Q: Cost allocation is arbitrary, so there is nothing gained by it. We should report only the costs that…

A: Cost allocation refers to the process of distributing the single cost among various companies,…

Q: 3. A. B. C. D. Which of the following statement is true? Company has no director and shareholder A…

A: Corporation - An organization that has been registered as a corporation under a corporation act has…

Q: Stairway Company sells a single product. The company's most recent income statement is given below:…

A: Fixed costs seem to be costs that are static in nature, which means they do not fluctuate whenever…

Q: Beginning work in process inventory: Units in process 200 Completion with respect to…

A: The cost of production report (CPR), which is a document utilized in process costing systems,…

Q: If sales are $250,000, merchandise purchases are $126,500, and the balance of the merchandise…

A: Cost of goods sold is the actual cost of goods that is being sold to the customers. It is calculated…

Q: Assume that the payroll record of Riverbed Oil Company provided the following information for the…

A: Payroll Register, like Display Statistics in the accounting module, is a month-by-month transaction…

Q: Dream Makers is a small manufacturer of gold and platinum jewelry. It uses a job costing system that…

Q: Which of the following could be possible cause for dissolution with liquidation of the partnership…

Q: Exercise 16-4 (Algo) Taxable income given; calculate deferred tax liability from book-tax difference…

A: Deferred Tax Liability: - It occurs when the company defers the tax payment. It is created when the…

Q: 15. Dynamic Company had sales of P1,500,000, fixed costs of P400,000 and variable costs of P900,000.…

A: Break-even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…

Q: How much is the amount due at the end of 5 years if the proceeds are $12,000 and the discount rate…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: In the last year, Bakers Score's Donuts and sweets has sold, on average, 1,194 "Fudgie" Brownies per…

A: Cannibalization Cannibalization of the market refers to a decline in revenue brought on by a…

Q: On January 1, 2020, Lizzo Construction sold $750,000 of 6% bonds to Swift Enterprise. The bonds…

A: Equity or debt security that is available for sale (AFS) is one that has been bought with the…

Q: The accountant of Hanoi Traders completed the subsidiary journals for the entity. Extracts from the…

A: Bank A/c = R53,880 Debtors Control A/c = R37,539 Creditors Control A/c = R48,951

Q: A production department reports the following conversion costs. Equivalent units of production for…

A: Lets understand the basics. Equivalent cost per unit is needed to calcualte how much amount should…

Q: Which of the following activities should the internal audit function NOT be involved in? a.…

A: Lets understand the meaning of internal audit here. Internal audit is a auditing design for the…

Q: Problem 6-50 (LO 6-2) (Algo) Trevor is a single individual who is a cash-method, calendar-year…

A: Standard deduction for 2021=$12,550

Q: Wharton, Inc., pays income taxes on capital gains (including gains on marketable securities) at a…

A: Marketable securities are not the restricted securities and therefore it can be bought and sold on…

Q: 1. A survey asks students to list their favorite hobby. Hobby is an example of a variable that…

A: The correct answer is option - c) Nominal scale. Explanation:- The nominal scale simply categorizes…

Q: Equity Method and Eliminating Entries Three Years After Acquisition Puffin Industries acquired all…

A: Solution Woking notes- Calculation of Stock holder equity jan 1 2014- Acquisition cost $7000000…

Q: 1.PREPARE A JOURNAL ENTRY FOR EACH TRANSACTION 2. PROFIT AND LOSS STATEMENT 3. Prepare Balance Sheet

A: Balance sheet is prepared by the company so that the position of the company which is the financial…

Q: Penn Corporation purchased 80 percent ownership of State Company on January 1, 20X2, at underlying…

A: Controlling Interest of Penn Corporation after 2000 shares sale = 60% Working: Net Income of State…

Q: Brody Corporation uses a process costing system in which all direct materials are added at the…

A: Process costing is used in an organization where a similar kind of product is produced and goods are…

Q: Valdosta Company is working on its costing information for January. Using normal costing, they use…

A: Production processes involve multiple processing phases. Different expenses will be associated with…

Q: Using the percentage method for manual payroll with W-4s from 2020 or later in Appendix C calculate…

A: Particulars S. Calder P. Singh B. Nelson Total Income 129000(10750*12) 87750(3375*26)…

Q: n: A water system is to be build to serve a newly developed subdivision. This subdivision will use…

A: Introduction Depreciation is an accounting technique for extending out the expense of a particular…

Q: In recent years, Oriole Company has purchased three machines. Because of frequent employee turnover…

A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…

Q: Belinda Furniture approached Melinda Accounting Services to audit its financial report for the year…

A: The purpose of any audit engagement is to provide audit opinion over the financial…

Q: For its most recent fiscal year, a firm reported that its contribution margin was equal to 60…

A: The contribution margin is calculated as difference between sales and variable costs. The operating…

Q: On March 31, the end of the first year of operations, Barnard Inc., manufactured 5,500 units and…

A: VARIABLE COSTING Variable Costing is Also Known Marginal Costing. Variable costing is a managerial…

Q: Which of the following statement is INCORRECT?

A: It is given in the question that the partnership business which has been established by the Daniel…

Q: How do you think accounting standards should be set? Is that the approach currently taken by the…

A: Solution The most feasible way may be to be aware of both the politics of the environment and the…

Q: B) Can the government revoke the real property and income tax exemptions enjoyed by non-stock,…

A: Answer:- Non-stock, non-profit educational institutions and religious organization:- A Non-stock,…

Q: White Diamond Flour Company manufactures flour by a series of three processes, beginning with wheat…

A: The question is based on the concept of Cost Accounting. Cost of production shows the cost incurred…

Q: 12. The partnership agreement of Walter, Xylo, and Yamete provides for the following profit-sharing…

A: Partnership: It implies to a formal agreement between two or more people who agree to conduct a…

Q: Valdosta Company is working on its costing information for January. Using normal costing, they use…

A: Prime Cost: Prime cost includes direct expenses related to the Manufacturing of goods. Major…

Q: Sunland Company Inc. had a beginning inventory of 120 units of Product RST at a cost of $7 per unit.…

A: The question is based on the concept of Cost Accounting. Weighted average cost is calculated by…

Q: Elements of financial statements are prescribed by the Conceptual Framework of financial accounting.…

A: Elements of the financial statement include: Assets Liabilities Owner's equity Revenue/gains…

Question

Calculate the financial ratios of Spinneys in 2022 and 2021.
Analyze the change between the years 2022 and 2021 in terms of financial ratios. Which financial ratios would you check to evaluate the performance of inventory management and cash management? Which year is better in terms of inventory management and cash management?

Q4) Consider the financial statement of Spinneys given in the table below.
Spinneys
Income Statement
Net operating revenues
Cost of goods sold
Gross Profit
Selling, general and administrative expenses
Operating income
Interest expense
Other income (loss)- net
Income before taxes
Income taxes
Other expenses
Net income
Balance Sheet
Assets
Cash and cash equivalents
Short term investments
Net receivables
Inventories
Total current assets
Property, plant and equipment
Goodwill
Other assets
Total assets
Liabilities and Stockholder Equity
Accounts payable
Short-term debt
Other current liability
2022
81200+1000*Group
number
61500+1000*Group
number
2022
21300
16500
2022
5300
1000
600
5000
2000
700
3400
2100
500
1400
7000+200*Group
number
10200
21000
3800
1300
34700
10700
1500
600
2021
81400
61400
20600
16100
5100
1000
600
4700
2000
600
3200
2021
2000
500
1300
7500
10300
19700
3600
1300
33200
2021
10100
2100
600

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Given the following information, convert Cardinal Companys cost of goods sold from its income statement into payments to suppliers for its statement of cash flows.
Options I have for denominator are - average accounts receivable, net average total assets cost of goods sold current assets current liabilities interest expense net sales
Calculate the EBIT which should be used for the EV / EBIT multiple given the information below: Net revenues Cost of sales Gross Profit Selling, general and administrative expenses Amortization expense Restructuring costs Acquisition-related costs Asset impairment charges Gain on sales of assets Operating income Interest expense, net Loss on early extinguishment of debt Other expense, net Income (loss) before taxes (Benefit) provision for income taxes Net income (loss) Select one: 1,394,8 1,444.4 1,474.3 S 1,419.6 5,248.1 1,746.0 3,502.1 2,027.8 During fiscal 2050, the company sold assets relating to the Cutey brand for a total disposal price of $29.2. The Company allocated $4.2 of goodwill to the brand as part of the sale. The Company recorded a gain of $24.8 which has been reflected in Gain on sales of assets in the Consolidated Statement of Operations for the fiscal year ended June 30, 2050. 79.5 86.9 174.0 5.5 (24.8) 1,153.2 81.9 3.1 30.4 1,037.8 (40.4) 1,078.2
which of the following comes first in the income statement O a. finance cost O b. gross profit O C. C. cost of sales O d. distribution cost
_______ ratios are used to measure the speed in which various assets are converted into sales or cash. A Debt (aka Leverage) B Efficiency (aka working capital) C Profitability C Coverage
_____________ are used to measure the speed in which various accounts are converted into sales or cash. Select one:. a. Liquidity ratios b. Profitability ratios c. Activity ratios d. Debt ratios
In a DuPont analysis, what are the components of return on assets?a. Net Profit Margin Ratio and Debt Ratiob. Net Profit Margin Ratio and Leverage Ratioc. Net Profit Margin Ratio and Asset Turnover Ratiod. Asset Turnover Ratio and Leverage Ratio
The area of finance address the issue of the efficiency of financial market in the allocation of recourses is known as: Corporate finance; Public finance: International finance; 2. A level of revenues, expenses and profit that occurred during a given accounting period are given in: Balance sheet; Income statement; A+B 3. Sales minus cost of goods sold is: Net profit; Operating profit; Gross profit; 4. The assets defined as cash and assets that will turn into cash within a year are defined as: Current assets; Non current assets; Fixed assets: 5. The liabilities due within a year are defined as: Current liabilities; Expenses: Non current liabilities; 6. Collecting of receivables and liquidation of assets concerns: Sources of funds; Uses of funds; Revenues: 7. Uses of funds are: Increase in a liability account and increase in an asset account; Payment of dividends and decrease in asset account; Increase in an asset account and payment of dividends; 8. New bank loan can be…
23. n a single period common sized statement, the base amount is net sales in the Statement of Comprehensive Income total assets in the Statement of Financial Positior net cash sales in the Statement of Comprehensiv Income total liabilities and equity in the Statement of Financial Position net profit in the Statement of Comprehensive Income
a. Current ratiob. Inventory Turnover ratioc. Accounts receivable ratiod. Fixed asset turnover ratioe. Net profit marginf. Return of assets (ROA)g. Return of equity (ROE)
_____________ are used to measure the speed in which various accounts are converted into sales or cash. Select one: a.Liquidity ratios b.Profitability ratios. c.Activity ratios d.Debt ratios
Asset utilization ratios: A. Are most important to stockholders.B. Measures the company's ability to generate a profit on sales.C. Measure how much cash is available for reinvestment into current assets.D. Relate balance sheet assets to income statement sales.