Homework Help is Here – Start Your Trial Now!
Business
Accounting
Following are the financial statements of AB Ltd. for 2019. Balance sheet (S in millions) Income statement (S in millions) Assets Liabilities and owners' equity Current liabilities: 2019 2019 2019 Current assets: Cash Sales 3,400 200 Accounts payable 400 Cost of goods sold 1,200 Accounts reccivable Bills payable 100 s00 Office and selling G00 Inventory Total current liabilities 400 s00 expenses Depreciation 102 Total current assets 1.100 Long-term liabilities: Long-term debt Total long-term liabilities 2.400 Shareholders' funds: Earnings before interest and taxes 1.498 200 Fixed assets: 200 Interest expense 10 Earnings before taxes 1.488 Property, plant, and equipment Тахes 607 Net income 681 Less: Accumulated depreciation 2.100 Equity share capital (si per share) Reserves & Surplus 200 Dividends 635 Net fixed assets 300 s00 Transfer to reserves and 246 Total owners' equity surplus 700 Other information Number of shares Outstanding (millions) 200 1400 Total linbility and owners' equity Total assets 1,400 Price per share 7.31 A. From the aforementioned table, calculate the following: 1. Current Ratio 2. Acid-Test Ratio 3. Receivables Turnover 4. Inventory turnover 5. Debt Ratio 6. Equity Ratio 7. Debt to Equity Ratio 8.Times Interest Earned 9. Gross Profit Rate 10.Operating Profit Margin 11. Net Profit Margin 12. Return on Assets

Following are the financial statements of AB Ltd. for 2019. Balance sheet (S in millions) Income statement (S in millions) Assets Liabilities and owners' equity Current liabilities: 2019 2019 2019 Current assets: Cash Sales 3,400 200 Accounts payable 400 Cost of goods sold 1,200 Accounts reccivable Bills payable 100 s00 Office and selling G00 Inventory Total current liabilities 400 s00 expenses Depreciation 102 Total current assets 1.100 Long-term liabilities: Long-term debt Total long-term liabilities 2.400 Shareholders' funds: Earnings before interest and taxes 1.498 200 Fixed assets: 200 Interest expense 10 Earnings before taxes 1.488 Property, plant, and equipment Тахes 607 Net income 681 Less: Accumulated depreciation 2.100 Equity share capital (si per share) Reserves & Surplus 200 Dividends 635 Net fixed assets 300 s00 Transfer to reserves and 246 Total owners' equity surplus 700 Other information Number of shares Outstanding (millions) 200 1400 Total linbility and owners' equity Total assets 1,400 Price per share 7.31 A. From the aforementioned table, calculate the following: 1. Current Ratio 2. Acid-Test Ratio 3. Receivables Turnover 4. Inventory turnover 5. Debt Ratio 6. Equity Ratio 7. Debt to Equity Ratio 8.Times Interest Earned 9. Gross Profit Rate 10.Operating Profit Margin 11. Net Profit Margin 12. Return on Assets

Financial Accounting
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter6: Accounting For Merchandising Businesses
Section: Chapter Questions
Problem 5PA: The following selected accounts and their current balances appear in the ledger of Clairemont Co....
See similar textbooks
icon
Related questions
Question

200
500
400
1,100
2,400
2,100
300
1,400              

400
100
500
200
200
200
500
700
1,400


3,400
1,200
600
102
1,498
10
1,488
607
881
635
246
200
7.31

Following are the financial statements of AB Ltd. for 2019. Balance sheet (S in millions) Income statement (S in millions) Assets 2019 Liabilities and 2019 2019 owners' equity Current assets: Current liabilities: Sales 3,400 Cash Accounts payable Bills payable Cost of goods sold Office and selling 200 400 1,200 Accounts reccivable s00 100 600 Inventory Total current 500 expenses 400 liabilities Depreciation Earnings before interest and taxes 102 Total current assets 1.100 Long-term liabilities: 1,498 Long-term debt Total long-term liabilities 2 400 Shareholders' funds: 200 Fixed assets: Interest expense 10 200 Earnings before taxes 1.488 Property, plant, and cquipment Less: Accumulated depreciation Тахes 607 Net income 881 2,100 Equity share capital (si per share) Reserves & Surplus 200 Dividends 635 Net fixed assets 300 Transfer to reserves and surplus 500 246 Total owners' equity 700 Other information Number of shares Outstanding (millions) Price per share 200 1400 Total liability and owners' equity Total assets 1,400 7.31 A. From the aforementioned table, calculate the following: 1. Current Ratio 2. Acid-Test Ratio 3. Receivables Turnover 4. Inventory turnover 5. Debt Ratio 6. Equity Ratio 7. Debt to Equity Ratio 8.Times Interest Earned 9. Gross Profit Rate 10.Operating Profit Margin 11. Net Profit Margin 12. Return on Assets
Transcribed Image Text:Following are the financial statements of AB Ltd. for 2019. Balance sheet (S in millions) Income statement (S in millions) Assets 2019 Liabilities and 2019 2019 owners' equity Current assets: Current liabilities: Sales 3,400 Cash Accounts payable Bills payable Cost of goods sold Office and selling 200 400 1,200 Accounts reccivable s00 100 600 Inventory Total current 500 expenses 400 liabilities Depreciation Earnings before interest and taxes 102 Total current assets 1.100 Long-term liabilities: 1,498 Long-term debt Total long-term liabilities 2 400 Shareholders' funds: 200 Fixed assets: Interest expense 10 200 Earnings before taxes 1.488 Property, plant, and cquipment Less: Accumulated depreciation Тахes 607 Net income 881 2,100 Equity share capital (si per share) Reserves & Surplus 200 Dividends 635 Net fixed assets 300 Transfer to reserves and surplus 500 246 Total owners' equity 700 Other information Number of shares Outstanding (millions) Price per share 200 1400 Total liability and owners' equity Total assets 1,400 7.31 A. From the aforementioned table, calculate the following: 1. Current Ratio 2. Acid-Test Ratio 3. Receivables Turnover 4. Inventory turnover 5. Debt Ratio 6. Equity Ratio 7. Debt to Equity Ratio 8.Times Interest Earned 9. Gross Profit Rate 10.Operating Profit Margin 11. Net Profit Margin 12. Return on Assets
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Annuity
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
  • SEE MORE QUESTIONS
Recommended textbooks for you
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Fundamentals Of Financial Management, Concise Edi…
Fundamentals Of Financial Management, Concise Edi…
Finance
ISBN:
9781337902571
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS