Questions: 1. Make a comparison for each company based on computed ratio.  2. What is your financial analysis on their overall performance?

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 26MCQ
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Questions:

1. Make a comparison for each company based on computed ratio. 

2. What is your financial analysis on their overall performance?

A. Income Statement
Ros
Net Income
Sales
Inventory Turnover
Cost Of Good Solds
Inventory
B. Current Ratio
Current Assets
Current Liabilities
Debt to Equity
Long term
Equity
C. Combine IS & BL
Quick Ratio
Current Asset
Inventory
Current Liabilities
Total Asset Turnover
Sales
Total Asset
Net Income
Total Asset
ROA
Axtel Company
3,116
36,227
19,925
3,220
12,829
1,824
11,678
2,110
7,112
14,224
6,002
14,613
12,829-2,573
1,824
11,678-3,220
2,110
36,227
22,725
3,116
22,725
0.09
6.19
7.03
5.53
0.50
0.41
5.62
4.0
1.59
0.14
Northern Manufacturing
2,305
23,560
0.10
11,506
6,470
1.78
11,930
2,710
4.40
13,970
2,430
5.75
11,320
3,000
3.77
12,335
5,105
2.42
11,930-5,180
2,710
13,970-6,470
2,430
22,560
19,870
2,305
19,870
2.49
3.09
1.14
0.12
Transcribed Image Text:A. Income Statement Ros Net Income Sales Inventory Turnover Cost Of Good Solds Inventory B. Current Ratio Current Assets Current Liabilities Debt to Equity Long term Equity C. Combine IS & BL Quick Ratio Current Asset Inventory Current Liabilities Total Asset Turnover Sales Total Asset Net Income Total Asset ROA Axtel Company 3,116 36,227 19,925 3,220 12,829 1,824 11,678 2,110 7,112 14,224 6,002 14,613 12,829-2,573 1,824 11,678-3,220 2,110 36,227 22,725 3,116 22,725 0.09 6.19 7.03 5.53 0.50 0.41 5.62 4.0 1.59 0.14 Northern Manufacturing 2,305 23,560 0.10 11,506 6,470 1.78 11,930 2,710 4.40 13,970 2,430 5.75 11,320 3,000 3.77 12,335 5,105 2.42 11,930-5,180 2,710 13,970-6,470 2,430 22,560 19,870 2,305 19,870 2.49 3.09 1.14 0.12
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