KINDLY ANSWER PARTS IV & V FOLLOWED BY PART B.i,ii,iii AQuestion 1A condensed balance sheet and other financial data for the Nike Company areprovided below.Nike Company Balance Sheet as at December 31, 20X1ASSETSCurrent assetsPlant assetsTotal assetsLIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilitiesLong-term liabilities.Total liabilitiesCommon Stock $1 par valueRetained Earnings.Total liabilities and stockholders' equityNet salesInterest expenseNet incomeNB: Inventory at 31 December 20X1 is $30 000Income statement data for the year ended 31 December 20X1 are recorded below:$375,0006,00030,500Current RatioTimes interest earned$110,000140,000$250,0006.5%36%0.85:1102:14 times$100,00065,000$165,000Additional information as at 31 December 20X0 is shown below:Total assetsStockholders' equityThe tax rate is 30 percent.Industry norms/averages for the same ratios as of December 31, 20X1, are:Debt to equity ratio10 ono11 75Earnings per share$0,26Return on total assetsReturn on stockholders' equityAcid test ratioalisieren70,00015,000$250,000$200,000$65,000L Required:a. From the information above calculate for 31 December 20X1 the followingratios:i. Debt to Equity ratioii.Earnings per shareReturn on total assetsReturn on capital employedAcid test ratio.iii.iv.V.vi.vii.b. Analyse the firm's performance using the industry norms/averagesoutlined above. The analysis should be based on:i. Profitabilityii.iii.Question 2Current ratioTimes interest earned ratioi.ii.iii.Liquidity andDebt ManagementThe following are some terms used in financial managementTime value of moneyAgency TheoryWorking capital managementRequireda) Briefly explain each term outlined aboveb) Differentiate between a risky asset and a risk free asset.c) Briefly explain three limitations of ratio analysis.End of Projectwork within a group of 5 persons53ده ست

The times of interest earned is the ratio which is usually used and computed in order to know that…

Return on capital employed Acid test ratio iv. V. vi. Current ratio vii. Times interest earned ratio Analyse the firm's performance using the industry norms/aw outlined above. The analysis should be based on: i. Profitability

Return on capital employed Acid test ratio iv. V. vi. Current ratio vii. Times interest earned ratio Analyse the firm's performance using the industry norms/aw outlined above. The analysis should be based on: i. Profitability

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter24: Analysis Of Financial Statements

Section: Chapter Questions

Problem 10SPA: RATIO ANALY SIS OF COMPARATI VE FIN ANCIAL STATE MENT S Refer to the financial statements in Problem...

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