Compute for the following: 1. Current Ratio 2. Quick Ratio 3. Debt Ratio 4. Equity Ratio
Q: Calcuate the following ratios 1. Profitability 2. Liquidity 3. Gearing 4. Investment
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Assume that you are given the following ratios: Asset turn-over: -1.5x Return on Assets: -3%…
A: Debt ratio measure the firm's total liabilities as a percentage of its total assets.
Q: Calculate the leverage ratio which includes total debt to total assets ratio, equity multiplier,…
A: Total Debts to Assets ratio = Long term debt + Short term DebtTotal Assets Equity Multiplier = Total…
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: How to Compute the following ratios i. Gross Profit % ii. Operating profit % iii. Net Profit % iv.…
A: There are different types of ratios used to measure the financial stability of the company, some of…
Q: Long-term solvency ratios Total debt ratio Debt-equity ratio Equity multiplier Times interest earned…
A: Long-term solvency ratio:- It is calculated to check the firm's long-term ability to meet its…
Q: Which of the following ratios is most useful in evaluating solvency? a. Receivables turnover ratio.…
A: Solvency ratios disclose the firm's ability to meet its long-term liabilities as and when they…
Q: What are the importance of the following financial ratios? Quick ratio. Debt to equity ratio.…
A: 1) Quick ratio= quick assets/ current liabilities Quick assets= current assets- inventory- prepaid…
Q: Give the formula for each of the following: a) Return on Equity b) Current Ratio
A: A quantitative method that provides information about the company including its liquidity,…
Q: Debt-equity ratio is a sub-part of Select one: a. Liquidity ratio b. Solvency ratio c. Profitability…
A: EXPLNANTION:- The debt-equity ratio is an indicator of the lenders' and stockholders' or owners'…
Q: Define the following "ratios" by using the appropiate mathematical expression . Give 1 sentence…
A: There are various financial ratios -
Q: The current ratio is calculated as current liabilities divided by current assets. O a. FALSE O b.…
A: the current ratio is a measure of the companies ability to pay its customers with the cash generated…
Q: Required: Calculate following Ratios I) Current Ratio I) Acid Test Ratio II) IV) Long term Debt to…
A: Answer and calculations are given below
Q: Explain what ratio analysis is.
A: First of all we need to understand the Ratio Ratio is the relationship between two…
Q: Using the table below (with the yellow box) (give also the ratio for the blank in the yellow box…
A: Profitability ratios can be defined as those ratios which help a firm in evaluating the profit-…
Q: Gross profit ration Net Profit ratio Current Ratio
A: Thank you for posting questions. Since you have posted multiple questions, as per the guideline I am…
Q: explain financial ratios and financial cycle
A: Financial ratios are designed using the numerical values taken from financial statements to obtain…
Q: Calculate the following ratios: 1. Return on Capital Employed (ROCE) 2. Current Ratio 3. Gearing…
A: 1.Return on Capital Employed (ROCE) Return on capital employed is calculated by dividing net…
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: The current ratio is: Multiple Choice Cash, short-term investments, and accounts receivable divided…
A: Solution: The Current ratio is a ratio which is considered as a liquidity ratio. It represents…
Q: Calculate the debt ratio
A: Debt ratio is a financial ratio which is calculated by dividing the total liabilities by the total…
Q: Write the formula for the following ratios and what each ratio measures:
A: Ratios are the measure which are used by the company to measure actually as well as it shows the…
Q: Which of the following is NOT one of the ratios in Internal Liquidity group? Select one: O a. Quick…
A: The liquidity ratios helps to know about the capability of the business to pay off its liabilities…
Q: The debt ratio is defined as (blaink) divided by (blank)
A: Ratios analysis will be providing information as to what percentage of portion is denoted to which…
Q: Railmond Statisties Conadian Notional Railway 2016 Data in million c $) 201지 Net income 5,484 73,640…
A: Honor code: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: ompute the following: 1. Horizontal and Vertical Analysis 2. Liquidity Ratios 3. Profitability Ratio
A: Note: Hi! Thank you for the question As per the honor code, We’ll answer the first question since…
Q: Based on financial reports prepare ratio analysis and interpret the result of the Following ratios:…
A: Liquidity ratios are key financial metrics which determines the ability of a company to meet its…
Q: s of financial ratios? Next t e:
A: Main type of Financial Ratio are (1) Liquidity Ratio (2) Solvency Ratio (3) Activity Ratio (4)…
Q: What are the main ratios used to analyze financial statements
A: Financial statements refer to the formal records of the company prepared at the end of the desire…
Q: From the above, compute (a) the Current Ratio, (b) Quick Ratio, (c) Debt-Equity Ratio,
A: Introduction: - Ratio analysis used to analysis business performance. It gives idea of company…
Q: List and define 4 of the common financial ratios
A: Financial ratios are calculated to understand the financial health of any business with using…
Q: b. Compute the following Ratios: iv. Average Collection period v. Profit Margin vi. Debt to Total…
A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…
Q: RATIO CALCULATIONS Assune the following relationships for hhe Brauer Cop Sales total assets Retum on…
A: Ratio analysis is the study of financial statements to determine the financial health and the…
Q: Help calculating the following ratios: return on equity current ratio quick ratio debt-to-equity…
A: ROE = Earning available to Equity shareholders * 100/ Equity shareholders fund Current Ratio =…
Q: Long-term solvency is indicated by a. Current ratio b. Debt/equity ratio c. Operating ratio d. Net…
A: Solvency refers to the company's ability to repay it's debt
Q: What is the meaning of each financial ratio?
A: Introduction: A financial ratio is a statistic that is frequently provided by two numbers acquired…
Q: ratios used in Financial Statements
A: Meaning of Financial Ratios Financial ratios are also called as accounting ratios. Any two aspects…
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: 2. Current ratio x 3. Debt-to-equity ratio x
A: Solution:- 2)Calculation of current ratio as follows under:- Current ratio =Current assets / Current…
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: a. What is debt management ratio? b. What is profitability ratio?
A: Since, you have asked multiple question, we will solve one question for you. if you want any…
Q: Describe the different ways to calculate the financial ratio? 4 Financial ratios can be calculated…
A: With numerical values taken from financial reports, financial ratios proportions are produced to…
Q: Based on financial reports prepare ratio analysis and interpret the result of the Following ratios:…
A: Ratio Analysis is the financial analysis technique which evaluate the profitability, liquidity,…
Q: Show the calculation of the following solvency ratios: (1) the debt to equity ratio, and (2) the…
A: Solvency: Solvency is the capability of a company to pay the long-term liabilities which are due.…
Q: The debt ratio is calculated by dividing:a. total assets by total debt.b. total debt by total…
A: Ratio analysis is used to evaluate the balance sheet figure and income statement.
Q: Calculate the liquidity- cash ratios, quick ratios and current ratios.
A:
Compute for the following:
1.
2. Quick Ratio
3. Debt Ratio
4. Equity Ratio
Step by step
Solved in 3 steps with 3 images
- 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 Asset turnoverThe 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?Vaughn Manufacturing Balance Sheet December 31, 2021 Assets Equities Cash $ 302000 Accounts payable $ 640000 Accounts receivable (net) 1942000 Income taxes payable 185000 Inventories 2451000 Miscellaneous accrued payables 230000 Plant and equipment, Bonds payable (8%, due 2023) 1850000 net of depreciation 1984000 Preferred stock ($100 par, 6% Patents 262000 cumulative nonparticipating) 752000 Other intangible assets 75200 Common stock (no par, 60,000 Total Assets $7016200 shares authorized, issued and outstanding) 1122000 Retained earnings 2466200 Treasury stock-1500 shares of preferred (229000) Total Equities $7016200 Vaughn Manufacturing Income Statement Year Ended December 31, 2021 Net…
- Dr.Cr.(GH₵)(GH₵)Stated capital310Income surplus at 1 January 2017456Inventory at 1 January 2017236Turnover1,468Purchases856Salaries46Directors salaries (admin expense)116Land & building at cost550Plant & equipment at cost578Land & building- accumulated depreciation as at 1 January 2017154Plant & equipment –accumulated depreciation as at 1 January 2017266Bank interest received6Sundry expenses56Trade receivables110Trade payables122Accruals42Cash at bank43Dividends paid36Administrative expenses183Interest paid142,8242,824The following information is also relevant:(1) Inventory at 31st December 2017 is GH₵256(2) The tax liability for the year is estimated to be 20% of the profit before tax.4(3) The original cost of land and buildings is made up of GH₵100 land and GH₵450 buildings. Buildings are used in administration and depreciation is charged on a straight line basis over the estimated useful life of 50 years.(4) Plant & equipment are used in distribution and…Refer to the following data of OCT2023CPACompany: Assets to be realized 1,375,000Assets acquired 825,000 Liabilities liquidated 1,875,000Assets realized 1,200,000Liabilities not liquidated 1,700,000 Assets not realized 1,375,000Llabilities assumed 1,625,000Llabilities to be liquidated 2,250,000 Supplementary charges 3,125,000 Supplementary credits 2,800,000 Compute the beginning cash balance assuming that the ending balance of ordinary share and retained earnings are P1,200,000 and (400,000), respectivelyOrbit Limited : Statement of Financial Position as at 31 December 2022 2021 Non-current Assets R11 810 000 R7 560 000 Property, Plant, Equipment R10 025 000 R6 250 000 Investments R1 785 000 R1 310 000 Current Assets R4 190 000 R4 690 000 Inventories R 1 875 000 R2 350 000 Account Receivable R1 925 000 R2 200 000 Cash R390 000 R140 000 Toatal Assets R16 000 000 R12 250 000 Equities & Liabilities Equity ? ? Oridanary share capital R5 480 000 R3 680 000 Retained earnings ? ? Non-current Liabilities R4 500 000 R3 800 000 Loan (20% p.a) R4 500 000 R3 800 000 Current Liabilities R2 300 000 R1 500 000 Accounts payable? R2 300 000 R1 500 000 Calculate the increase in the retained earnings over the two-year period.
- The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows:Dec 31 20Y9 Dec 31 20Y8ASSETSCash $ 70,720 $ 47,940Accounts Receivable 207,230 188,190Inventories 298,520 289,850Investments - 102,000Land 295,800 -Equipment 438,600 358,020Accumulated Depreciation-Equipment (99,110) (84,320)Total Assets $ 1,211,760 $ 901,680LIABILITIES AND STOCKHOLDERS' EQUITYAccounts Payable $ 205,700 $ 194,140Accrued Expenses Payable (operating expenses) 30,600 26,860Dividends Payable 25,500 20,400Common Stock, $1 par 202,000 102,000Paid-in Capital; Excess of issue price over par-common stock 354,000 204,000Retained Earnings 393,960 354,280Total Liabilities and Stockholders Equity: $ 1,211,760 $ 901,680Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows:A. Equipment and land were acquired for cashB. There were no disposals of equipment during the year.C. The investments were sold for $91,800 cash.D. The common stock was…PQ16.08 Equipment that cost $144,000 and on which $120,000 of accumulated depreciation has been recorded was disposed of for $36,000 cash. The entry to record this event would include ??1. The following information is from Direct to You Corp.’s (DYC) financial records for its year ended December 31, 2020: Select statement of financial position information: 2020 2019 Investments in financial assets (at fair value through profit or loss [FVPL]) 12,000 10,000 Inventory 575,000 498,000 Property, plant, and equipment (PPE) 1,984,000 1,396,000 Less: accumulated depreciation (650,400) (487,000) Copyright 126,000 135,000 Patents 564,000 417,000 Select statement of comprehensive income information: Depreciation of property, plant, and equipment (334,400) Amortization of patents (65,000) Interest expense (75,000) Impairment loss — copyright (9,000) Gain on sale of PPE 23,000 Additional information: PPE that originally cost $570,000 was sold during the year. 100,000 common shares were issued in 2020 to acquire $450,000 of property, plant, and equipment. DYC is subject to IFRS. What amount of net cash used…
- P12.1B (L0 1,2,3,5) (Correct Intangible Asset Account) Dolphin Co., organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020 and 2021: Instructions 3/1/2020 3/1/2020 4/1/2020 6/30/2020 9/1/2020 12/31/2020 6/30/2021 9/1/2021 Intangible Assets 10-year franchise agreement; expires 2/28/28 Organization costsAdvance payment for 2 years for office space Purchased a patent (8-year life) Cost to develop a patent (10-year life) Net operating loss for 2020Research and development costsLegal fee to successfully defend internally developed patent $ 60,000 7,000 24,000 80,000 40,000 61,000 265,000 13,500 Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Make the entries as of December 31, 2021, recording any necessary amortization and reflecting all balances accurately as of that date. (Ignore…E11.9 (LO1,2) (Component Depreciation) Morrow Manufacturing has equipment that is comprised of five components (amounts in thousands). Component Cost Estimated Residual Estimated Life (in years) A ¥40,500 5,500 10 B 33,600 4,800 9 C 36,000 3,600 8 D 19,000 1,500 7 E 23,500 2,500 6 Instructions a. Prepare the adjusting entry necessary at the end of the year to record depreciation for the year. Assume that Morrow uses straight-line depreciation. b. Prepare the entry to record the replacement of component B for cash of ¥40,000. It was used for 6 years.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.