Homework Help is Here – Start Your Trial Now!
Business
Accounting
If company A has current ratio of 1.3 while company B has a current ratio of 2.3, which is a better company? 8. Which ratio is more relevant - quick ratio or current ratio? 9. What other factors would a bank or supplier look into in deciding whether to lend short term credit?

If company A has current ratio of 1.3 while company B has a current ratio of 2.3, which is a better company? 8. Which ratio is more relevant - quick ratio or current ratio? 9. What other factors would a bank or supplier look into in deciding whether to lend short term credit?

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.6E
See similar textbooks
icon
Related questions
Question
100%
7. If company A has current ratio of 1.3 while company B has a current ratio of 2.3, which is a better company? 8. Which ratio is more relevant - quick ratio or current ratio? 9. What other factors would a bank or supplier look into in deciding whether to lend short term credit?
Provide Ratio analysis of the following companies and answer the following questions. Show the statement of financial position of three companies: Jollibee, Petron, and Globe. JFC Petron Globe ASSETS Current assets Cash 7,619 90.602 16,757 Receivables 7,621 17,927 23,543 Inventories 5,972 53,180 3,186 Other current assets 2,810 57,320 3,256 24,022 219,029 46,742 Non-current Assets Property, plant and equipment 13,364 153,650 117,299 Financial Investments 3,410 1,613 451 Other non-current assets 13,323 17,032 15,015 30,097 172,295 132,765 TOTAL ASSETS 54,119 391,324 179,507 LIABILITIES Current Liabilities Accounts Payable 2,455 29,496 12,458 Income Tax Payable 182 73 1,587 Short-term debt 1,865 133,388 Other current liabilities 14,589 39,630 46,305 19,091 202,587 60,350 Non-current Liabilities Long-term Debt 4,428 66,269 59,146 Other Liabilities 2,522 8,776 5,473 6,950 75.95 64,619 TOTAL LIABILITIES 26,041 277,634 124,969
Transcribed Image Text:Provide Ratio analysis of the following companies and answer the following questions. Show the statement of financial position of three companies: Jollibee, Petron, and Globe. JFC Petron Globe ASSETS Current assets Cash 7,619 90.602 16,757 Receivables 7,621 17,927 23,543 Inventories 5,972 53,180 3,186 Other current assets 2,810 57,320 3,256 24,022 219,029 46,742 Non-current Assets Property, plant and equipment 13,364 153,650 117,299 Financial Investments 3,410 1,613 451 Other non-current assets 13,323 17,032 15,015 30,097 172,295 132,765 TOTAL ASSETS 54,119 391,324 179,507 LIABILITIES Current Liabilities Accounts Payable 2,455 29,496 12,458 Income Tax Payable 182 73 1,587 Short-term debt 1,865 133,388 Other current liabilities 14,589 39,630 46,305 19,091 202,587 60,350 Non-current Liabilities Long-term Debt 4,428 66,269 59,146 Other Liabilities 2,522 8,776 5,473 6,950 75.95 64,619 TOTAL LIABILITIES 26,041 277,634 124,969
JFC Petron Globe EQUITY Capital Stock 1,064 9,485 8,429 Additional Paid-in Capital 4,452 19,653 36,049 Retained Earnings 22,646 40,815 10,852 Other Equity Accounts (84) 43,739 (792) Total Equity 28,078 113,692 54,538 TOTAL LIABILITIES AND EQUITY 54,119 391,324 179,507 Sales Revenue 90,671 482,535 103,235 Cost of Sales/Service (73,728) (463,100) (10,661) Gross Margin 16,943 19,435 92,574 Operating Expenses (10,806) (11,830) (59,506) Operating Profie 6,137 7,605 33,068 Other Income 748 1,736 1,255 Other Expenses (126) (5,528) (14,940) Net Income Before Tax 6,759 3,813 19,383 Income Tax (1,271) (804) (6,011) Cast Net Income After Tax 5,488 3,009 13,372
Transcribed Image Text:JFC Petron Globe EQUITY Capital Stock 1,064 9,485 8,429 Additional Paid-in Capital 4,452 19,653 36,049 Retained Earnings 22,646 40,815 10,852 Other Equity Accounts (84) 43,739 (792) Total Equity 28,078 113,692 54,538 TOTAL LIABILITIES AND EQUITY 54,119 391,324 179,507 Sales Revenue 90,671 482,535 103,235 Cost of Sales/Service (73,728) (463,100) (10,661) Gross Margin 16,943 19,435 92,574 Operating Expenses (10,806) (11,830) (59,506) Operating Profie 6,137 7,605 33,068 Other Income 748 1,736 1,255 Other Expenses (126) (5,528) (14,940) Net Income Before Tax 6,759 3,813 19,383 Income Tax (1,271) (804) (6,011) Cast Net Income After Tax 5,488 3,009 13,372
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Receivables Management
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
Recommended textbooks for you
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Century 21 Accounting Multicolumn Journal
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
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
Financial Accounting: The Impact on Decision Make…
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS