How importance are financial statements and ratios in today’s current financial and economic environment of 2021. There should be plenty to discuss here. Other Data201520162017EStock priceShares outstanding$8.50$6.00$12.17100,000100,000250,000EPS$0.880$0.951$1.014DPS$0.220$0.110$0.220Tax rate40%40%40%Book value per shareLease payments$6.638$5.576$7.909$40,000$40,000$40,000Note: "E" denotes "estimated"; the 2017 data are forecasts.Ratio AnalysisIndustryAverage201520162017ECurrent2.31.52.7Quick0.80.51.0Inventory turnoverDays sales outstandingFixed assets turnover4.04.06.137.339.632.010.06.27.0Total assets turnover2.32.02.5Debt ratio35.6%59.6%32.0%Liabilities-to-assets ratio54.8%80.7%50.0%TIE3.30.16.2EBITDA coverageProfit marginBasic earning power2.60.88.02.6%-1.6%3.6%14.2%0.6%17.8%ROA6.0%-3.3%9.0%ROE13.3%-17.1%17.9%Price/Earnings (P/E)Price/Cash flow9.7-6.316.28.027.57.6Market/Book1.31.12.9Note: "E" denotes "estimated." ****. ..Balance Sheets201520162017EAssetsCash2$9,000$7,28214,000Short-term investments48,60020,00071,632Accounts receivable351,200632,160878,0001,716,480$2,680,1121,220,000Inventories715,2001,287,360$1,946,802Total current assetsGross fixed assets$1,124,000491,0001,202,950Less: Accumulated depreciation146,200$ 344,800263,160$ 939,790m$ 836,840$3,516,952383,160Net fixed assetsTotal assets$1,468,800$2,886,592Liabilities and EquityAccounts payableNotes payableAccrualsTotal current liabilities201520162017E$ 145,600$ 324,000$ 359,800200,000720,000300.000380,000136,000$ 481,600284,960$1,328,960$1,039,800Long-term debtCommon stock (100,000 shares)Retained earningsTotal equityTotal liabilities and equity323,4321,000,000500,000460,000460,0001,680,936203,768$ 663,768$1,468,80097,632$ 557,632296,216$1,977,152$2,886,592$3,516,952Note: "E denotes "estimated"; the 2017 data ure forecasts.Income Statements201520162017ESales$3,432,000$5,834,400$7,035,6005,800,000Cost of goods sold except depr.Depreciation and amortizationOther expensesTotal operating costs2,864,0004,980,00018,900116,960720,000$5,816,960120,000612,960$6,532,960$ 502,64080,000$ 422,640169,056$ 253,584340,000$3,222,900EBIT$ 209,10017,440.Interest expense176,000($ 158,560)62,500$ 146,600Pre-tax earningsTaxes (40%)Net income58,640(63,424)$ 87,960($. 95,136)Note "E" denotes "estimated"; the 2017 dats are forecasts.

Ratio analysis is the very popular method of analysis to find out liquidity, profitability and…

Answered: How importance are financial statements…

How importance are financial statements and ratios in today’s current financial and economic environment of 2021. There should be plenty to discuss here.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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).
E10.18 (LO 5), AN Suppose the following financial data were reported by 3M Company for 2021 and 2022 (dollars in millions). 3M CompanyBalance Sheets (partial) 2022 2021 Current assets Cash and cash equivalents $ 3,040 $1,849 Accounts receivable, net 3,250 3,195 Inventories 2,639 3,013 Other current assets 1,866 1,541 Total current assets $10,795 $9,598 Current liabilities $ 4,897 $5,839 Instructions Calculate the current ratio and working capital for 3M for 2021 and 2022. Suppose that at the end of 2022, 3M management used $300 million cash to pay off $300 million of accounts payable. How would its current ratio and working capital have changed?
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How much is the total net cash flow? O P430.000 O P270.000 O P620.000 O P695,000
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Orbit 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.
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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…