Selected financial data for Amberjack Corporation follows.Year 1 ($thousands)339,270265,261SalesCost of goods soldNet incomeCash flow from operationsCashMarketable securitiesAccounts receivableInventoriesTotal current assetsAccounts payableAccrued liabilitiesTotal current liabilities(171,114)(60,875)342,780343,74622,9476,681716,15430,50846,29476,802a. Current ratioa. Quick ratiob1. Collection periodb2. Inventory turnover (X)b2. Payables period (days)b3. Days' sales in cashb4. Gross marginb4. Profit marginYear 2 ($thousands)a. Calculate the current and quick ratio at the end of each year.Note: Round your answers to 1 decimal place.Year 1477,721357,524b. Assuming a 365-day year for all calculations, compute the following:1. The collection period each year based on sales.2. The inventory turnover and the payables period each year based on cost of goods sold.3. The days' sales in cash each year.4. The gross margin and profit margin each year.Note: Round your answers to 1 decimal place. Negative answers should be indicated by parentheses.%%(405,109)(23,603)270,87238,50037,29873,706420,37624,358126,451150,809Year 2%%

Ratio analysis is a financial analysis technique used to evaluate the performance, liquidity,…

Selected financial data for Amberjack Corporation follows. Sales Cost of goods sold Net income Cash flow from operations Cash Marketable securities Accounts receivable Inventories Total current assets Accounts payable Accrued liabilities Total current liabilities. Year 1 ($ Year 2 ($ thousands) thousands) 339,270 265,261 (171,114) (60,875) 342,780 343,746 22,947 6,681 716,154 30,508 46,294 76,802 477,721 357,524 (405,109) (23,603) 270,872 38,500 37,298 73,706 420,376 24,358 126,451 150,809 a. Calculate the current and quick ratio at the end of each year. Note: Round your answers to 1 decimal place. b. Assuming a 365-day year for all calculations, compute the following: 1. The collection period each year based on sales. 2. The inventory turnover and the payables period each year based on cost of goods sold. 3. The days' sales in cash each year. 4. The gross margin and profit margin each year.

Selected financial data for Amberjack Corporation follows. Sales Cost of goods sold Net income Cash flow from operations Cash Marketable securities Accounts receivable Inventories Total current assets Accounts payable Accrued liabilities Total current liabilities. Year 1 ($ Year 2 ($ thousands) thousands) 339,270 265,261 (171,114) (60,875) 342,780 343,746 22,947 6,681 716,154 30,508 46,294 76,802 477,721 357,524 (405,109) (23,603) 270,872 38,500 37,298 73,706 420,376 24,358 126,451 150,809 a. Calculate the current and quick ratio at the end of each year. Note: Round your answers to 1 decimal place. b. Assuming a 365-day year for all calculations, compute the following: 1. The collection period each year based on sales. 2. The inventory turnover and the payables period each year based on cost of goods sold. 3. The days' sales in cash each year. 4. The gross margin and profit margin each year.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 4PB

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