Chapter 14, Question 6. Attached is a similar question with answers. Please answer in the same formate for the new question :) Company analysis. Given the financial data in the popup window, E, for General Motors (GM) and Ford Motor Company (F), compare these two companies usingthe following financial ratios: times interest earned ratio, current ratio, total asset turnover, financial leverage, profit margin, and return on equity. Which companywould you invest in, either as a bondholder or as a stockholder?The times interest earned ratio for General Motors is 24.2523. (Round to four decimal pli Data TableThe times interest earned ratio for Ford Motor Company is 9.7084. (Round to four decinClick on the following Icon A in order to past this table's content into aThe current ratio for General Motors is 1.3066. (Round to four decimal places.)spreadsheet.The current ratio for Ford Motor Company is 6.7375. (Round to four decimal places.)General MotorsFord Motor CompaSales$155,463$146,936The total asset turnover ratio for General Motors is 0.9348. (Round to four decimal placeEBIT$7,785$7,757Interest Expense$321$799The total asset turnover ratio for Ford Motor Company is 0.7276'. (Round to four decimaNet Income$5,381$7,093Current Assets$81,533$131,536The financial leverage ratio for General Motors is 3.9080'. (Round to four decimal placesTotal Assets$166,315$201.943Current Liabilities$62,402$19,523The financial leverage ratio for Ford Motor Company is 7.6520. (Round to four decimal$26,391EquityValues are expressed in millions of dollars.$42,558The profit margin ratio for General Motors is 3.46 %. (Round to two decimal places.)The profit margin ratio for Ford Motor Company is 4.83 %. (Round to two decimal placesPrintDoneThe return on equity for General Motors is 12.64 %. (Round to two decimal places.)The roturn on eguity for Ford Motor Company ie 26 88'% IRound to twn decimal nlaces Company analysis. Given the financial data in the popup window, E, for General Motors (GM) and Ford Motor Company (F), compare these two companies usingthe following financial ratios: times interest earned ratio, current ratio, total asset turnover, financial leverage, profit margin, and return on equity. Which companywould you invest in, either as a bondholder or as a stockholder?Data TableClick on the following Icon A in order to past this table's content into aspreadsheet.General MotorsFord Motor CompanySales$155,465$146,961EBIT$7,735$7,866Interest Expense$398$743Net Income$5,332$7,197Current Assets$81,597$131,452Total Assets$166,296$202,093Current Liabilities$62,407$19,423Equity$42,624$26,389Values are expressed in millions of dollars.

The financial ratio is a tool that helps to analyze the financial statement of the organization.

Company analysis. Given the financial data in the popup window, E, for General Motors (GM) and Ford Motor Company (F), compare these two companies using he following financial ratios: times interest earned ratio, current ratio, total asset turnover, financial leverage, profit margin, and return on equity. Which company vould you invest in, either as a bondholder or as a stockholder? 1 Data Table Click on the following Icon e in order to past this table's content into a spreadsheet. General Motors Ford Motor Company Sales $155,465 $146,961 EBIT $7,735 $7,866 $398 $743 Interest Expense Net Income $5,332 $7,197 Current Assets $81,597 $131,452

Company analysis. Given the financial data in the popup window, E, for General Motors (GM) and Ford Motor Company (F), compare these two companies using he following financial ratios: times interest earned ratio, current ratio, total asset turnover, financial leverage, profit margin, and return on equity. Which company vould you invest in, either as a bondholder or as a stockholder? 1 Data Table Click on the following Icon e in order to past this table's content into a spreadsheet. General Motors Ford Motor Company Sales $155,465 $146,961 EBIT $7,735 $7,866 $398 $743 Interest Expense Net Income $5,332 $7,197 Current Assets $81,597 $131,452

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter17: Financial Statement Analysis

Section17.4: Analyzing Financial Statements Using Financial Ratios

Problem 1OYO

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The following is selected financial data from Block Industries: How much does Block Industries have in current liabilities? A. $19,800 B. $18,300 C. $12,300 D. $25,800
Mike Sanders is considering the purchase of Kepler Company, a firm specializing in the manufacture of office supplies. To be able to assess the financial capabilities of the company, Mike has been given the companys financial statements for the 2 most recent years. Required: Note: Round all answers to two decimal places. 1. Compute the following for each year: (a) return on assets, (b) return on stockholders equity, (c) earnings per share, (d) price-earnings ratio, (e) dividend yield, and (f ) dividend payout ratio. 2. CONCEPTUAL CONNECTION Based on the analysis in Requirement 1, would you invest in the common stock of Kepler?
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Analyze and compare Zynga, Electronic Arts, and Take-Two Data (in millions) from recent financial statements of Zynga Inc. (ZNGA), Electronic Arts Inc. (EA), and Take-Two Interactive Software, Inc. (TTWO) are as follows: a. Compute the working capital for Year 2 and Year 1 for each company. b. Which company has the largest working capital? c. Compute the current ratio for Year 2 and Year 1 for each company. Round to one decimal place. d. For Year 2, rank the companies from most liquid to least liquid based upon the current ratio.
To get an overall picture of each company's capital structure, it is helpful to look at a the Key Ratios screen and then select the Financial Health tab. Common size balance sheet data are provided over a 10-year period. What, if any, are the major trends that emerge when you're looking at those data? Do those companies tend to have relatively high or relatively low levels of debt? Do these companies have significant levels of current liabilities? Have their capital structures changed over time? Use online resources to work on this chapter's questions. Please note that website information changes over time, and these changes may limit your ability to answer some of these questions. This chapter provides an overview of the effects of leverage and describes the process that firms use to determine their optimal capital structure. The chapter also indicates that capital structures tend to vary across industries and across countries. If you are interested in exploring these differences in more detail, the Morningstar website provides information about the capital structures of each of the companies it follows. The following discussion questions demonstrate how we can use this information to evaluate the capital structures for four restaurant companies: Cheesecake Factory (CAKE), Chipotle Mexican Grill (CMG), Ruby Tuesday (RT), and O'Charley's Inc. (CHUX).
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Effect of Industry Characteristics on Financial Statement Relations. Effective financial statement analysis requires an understanding of a firms economic characteristics. The relations between various financial statement items provide evidence of many of these economic characteristics. Exhibit 1.22 (pages 6061) presents common-size condensed balance sheets and income statements for 12 firms in different industries. These common-size balance sheets and income statements express various items as a percentage of operating revenues. (That is, the statement divides all amounts by operating revenues for the year.) Exhibit 1.22 also shows the ratio of cash flow from operations to capital expenditures. A dash for a particular financial statement item does not necessarily mean the amount is zero. It merely indicates that the amount is not sufficiently large enough for the firm to disclose it. Amounts that are not meaningful are shown as n.m. A list of the 12 companies and a brief description of their activities follow. A. Amazon.com: Operates websites to sell a wide variety of products online. The firm operated at a net loss in all years prior to that reported in Exhibit 1.22. B. Carnival Corporation: Owns and operates cruise ships. C. Cisco Systems: Manufactures and sells computer networking and communications products. D. Citigroup: Offers a wide range of financial services in the commercial banking, insurance, and securities business. Operating expenses represent the compensation of employees. E. eBay: Operates an online trading platform for buyers to purchase and sellers to sell a variety of goods. The firm has grown in part by acquiring other companies to enhance or support its online trading platform. F. Goldman Sachs: Offers brokerage and investment banking services. Operating expenses represent the compensation of employees. G. Johnson Johnson: Develops, manufactures, and sells pharmaceutical products, medical equipment, and branded over-the-counter consumer personal care products. H. Kelloggs: Manufactures and distributes cereal and other food products. The firm acquired other branded food companies in recent years. I. MGM Mirage: Owns and operates hotels, casinos, and golf courses. J. Molson Coors: Manufactures and distributes beer. Molson Coors has made minority ownership investments in other beer manufacturers in recent years. K. Verizon: Maintains a telecommunications network and offers telecommunications services. Operating expenses represent the compensation of employees. Verizon has made minority investments in other cellular and wireless providers. L. Yum! Brands: Operates chains of name-brand restaurants, including Taco Bell, KFC, and Pizza Hut. REQUIRED Use the ratios to match the companies in Exhibit 1.22 with the firms listed above.