Compare the Solvency, Liquidity and Profitability for the two companies Ratio Analysis FormulacurrentCurrentratioassets/CurrentliabilitiesAccountNet sales/Receivab AverageleaccountsTurnovereceivable,TnetAverage365/CollectiAccountonReceivablePeriod TurnoverInventor Cost ofgoodsyTurnovesold/rAverageinventoryDays inAverageInventorinventory/cost ofgoodsold 365currentnet cashCashprovided byDebtoperatingactivities/CoveragaveragecurrentliabilityProfitNetMarginincome/net sales$20,245/$11,245=1.8$48,750/ $50,450=0.961,750/8100=7.6362.000/4120-87.8365/7.6-48365/87.8-4.1539,900/8,020-4.9727,680/32,500=0.88.020/39,900*365-73.332.500/27,680*365-4284900/11,245+10.300/2=0.4525,900/52,640+50,450/2=0.503,245/61750=0.05013,580/362,000=0.03AI Pan InterpretOthda,ationaimInc1.8 0.97.6 87.848.024.154.97 0.873.3428.50.45 0.500.030.05 Net sales/AssetTurnove61,750/43,850+41,850/2=1.44Average1.442.25rtotal assets362,000/159,750+161,250/2=2.25ReturnNet3,245/41,850-0.077 0.077 0.08onincome/totAssetsal assets13,580/159,750=0.08Return3245-190.14Net income-Preferreddividend/Aveon495/13,240+15450=Commo0.19ragencommonStockhol stockholders 13,580-der's3850/62480+71,450=Equity equity0.14Debt toAssetsTimesInterestEarnedCash4900/28,750+26050/2 0.17 0.26= 0.17DebtCoverag by2,953 1130free0CashFlownet cashprovidedoperating 25,900/94,500+98,300activities/a /2=0.26veragetotalliabilitynet cash4,900-1,452-495=provided2,953byoperating 25,900-10,750-activities- 3,850-11,300Capitalexpenditure- cashdividends

There are two companies AIOTHAIM and Panda Inc. Comparing ratios between these two companies. (1)…

Ratio Analysis Formula current Current ratio assets/ Current liabilities Account Net sales/ Receivab Average le accounts Turnove receivable, net Average 3651 Collecti Account on Receivable Period Turnover Inventor Cost of goods y Turnove sold/ Average inventory Days in Average Inventor inventory/3 cost of good sold 365 current net cash Cash provided by Debt operating activities/ Coverag average e current liability Profit Net Margin income/ne t sales $20,245/ $11,245=1.8 $48,750/ $50,450=0.9 61,750/8100=7.6 362.000/4120=87.8 365/7.6-48 365/87.8-4.15 39,900/8,020-4.97 27,680/32,500=0.8 8.020/39,900*365=73. 32.500/27,680*365=4 28 4900/11,245+10.300/2= 0.45 25,900/52,640+50,450/2= 0.50 3,245/61750=0.050 13,580/362,000=0.03 Al Pan Interpret Oth da, ation wwwnnn aim Inc 00000 0.9 7.6 87.8 48.02 4.15 4.97 0.8 73.3 428. 5 0.45 0.50 0.03 0.05

Ratio Analysis Formula current Current ratio assets/ Current liabilities Account Net sales/ Receivab Average le accounts Turnove receivable, net Average 3651 Collecti Account on Receivable Period Turnover Inventor Cost of goods y Turnove sold/ Average inventory Days in Average Inventor inventory/3 cost of good sold 365 current net cash Cash provided by Debt operating activities/ Coverag average e current liability Profit Net Margin income/ne t sales $20,245/ $11,245=1.8 $48,750/ $50,450=0.9 61,750/8100=7.6 362.000/4120=87.8 365/7.6-48 365/87.8-4.15 39,900/8,020-4.97 27,680/32,500=0.8 8.020/39,900365=73. 32.500/27,680365=4 28 4900/11,245+10.300/2= 0.45 25,900/52,640+50,450/2= 0.50 3,245/61750=0.050 13,580/362,000=0.03 Al Pan Interpret Oth da, ation wwwnnn aim Inc 00000 0.9 7.6 87.8 48.02 4.15 4.97 0.8 73.3 428. 5 0.45 0.50 0.03 0.05

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 9.1E

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