The quick ratio is 2 and 1.33 for company A and B, respectively. 1. Do you think that company A has a better financial condition than company B? Explain your answer in details.
Q: Which of the following is NOT one of the ratios in Profitability group? Select one: a. Quick ratio…
A: Profitability ratios are those ratios which helps in measuring and determining the profitability of…
Q: George H. and James W. have identified two companies, Riccarton Plc and Edinburgh Plc they would be…
A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…
Q: The Wilson Corporation has the following relationships: Sales/Total assets 2.0 Return on assets…
A: Profit margin is the percentage of profit on total sales. Debt ratio refers to the total percentage…
Q: For each individual ratio for each company, Your comments for each ratio should include more than…
A: Accounting Ratios are the financial tools used by an investor to interpret the financial statements…
Q: An analyst has calculated a ratio using as the numerator the sum of operating cash fl ow, interest,…
A: This ratio is interest coverage ratio It is the profitability and debt ratio which helps to identify…
Q: 5.Which ratio or ratios measure the overall efficiency of the business in managing its investment in…
A: Ratio analysis is referred to as a quantitative technique for assessing a firm's performance and…
Q: Which financial ratios would you recommend to evaluate a company's solvency? Once these ratios are…
A: To evaluate company solvency, Solvency ratios are the company long-term ability to cover the…
Q: Define the following "ratios" by using the appropiate mathematical expression . Give 1 sentence…
A: There are various financial ratios -
Q: Which of the following income statement figures would probably be the best indicator of a company's…
A: Income statement: The income statement is one of the three primary financial statements used to…
Q: Which of the following ratios is not used to analyzeprofitability?a. Net profit margin ratio.b.…
A: Financial ratio analysis: It can be defined as an analysis tool that is based upon the relative…
Q: What is the possible link between the following ratios: (a) profitability and efficiency (b)…
A: SOLUTION A- Relation between profitability and efficiency ratios Profitability ratio depicts how…
Q: Using the table below (with the yellow box) (give also the ratio for the blank in the yellow box…
A: Profitability ratios can be defined as those ratios which help a firm in evaluating the profit-…
Q: h of the following statements is correct? Statement 1. Ratios are used to compare different…
A: Financial statements prepared by the company are analyzed by various stakeholders. Analysis of…
Q: Calculate the following ratios: 1. Return on Capital Employed (ROCE) 2. Current Ratio 3. Gearing…
A: 1.Return on Capital Employed (ROCE) Return on capital employed is calculated by dividing net…
Q: Compare and contrast the four categories of financial ratios we discussed in class. Discuss how the…
A: Financial ratios: Financial ratios are those ratios that are created using values obtained from the…
Q: Company X is competing with company Y. These are their ratios: x y Current Ratio = .223 Current…
A: Current Ratio It is an accounting ratio which measures the company's ability to pay short term debt…
Q: Comparison between 2020E ratios and industry averages - (c) Asset utilization ratios; (1) Are the…
A: (c) Assets utilization ratios represent how efficiently the company utilizes its assets to earn…
Q: EBITDA is one indicator of a firm's financial performance and is used as a proxy for the earning…
A: 1) EBITDA is a good proxy for operating cash flows. It does not account the effect of capital…
Q: If Company A uses more debt than Company B and both companies have identical operations in terms of…
A: If A company utilizes more debt than that of B company then, interest will be charged on the debt…
Q: Price-to-book value ratios are most appropriate for measuring the relative value of: A a bank. B a…
A: Price to Book Value:- Price to book value ratio is very important ratio when we are finding an…
Q: Required: a. Calculate the following ratios: i. Profitability ratios - Retum on Capital Employed,…
A: Ratio analysis is a quantitative method used to know the liquidity, operational efficiency, and…
Q: Answers only please. 1. While determining the most profitable company from the given number of…
A: Profitability is the measure of success with which the business operates.
Q: Comparison: 1. Observe the trend of revenues for both companies. Which company has higher revenue?…
A: The question is related to analysis of Financial Statements of two companies from 2007 to 2010 based…
Q: Which of the following is NOT a profitability ratio? Select one: a. Return on Equity b. Net Profit…
A:
Q: Which of the following statements is most correct? (Hint: Work Problem 4-16 before answering 4-17,…
A: BEP ratio shows the earning power of the business before the impact of business' income taxes and…
Q: Prepare a vertical analysis for both the income statement and balance sheet. Write a paragraph…
A:
Q: A company with a higher level of gearing will have: a.A high liabilities/total assets ratio. b.A…
A: Gearing ratio is one of the financial ratio which shows how much total assets of the business are…
Q: Find the working captital, Current ration :1, debt to assets ratio, free cash flow, earning per…
A: Ratio analysis refers to the analysis of various piece of financial information int he financial…
Q: Which of the following ratios helps in measuring the long term solvency of the company? Current…
A: Requirement ÷ratio helps in measuring the long term solvency of the company ANSWER ÷ correct…
Q: questlon 1 When comparing a fim's ratios to an industry, is it bad to be below average? Explain your…
A: A ratio analysis is a way of assessing a company's financial statements or individual line items…
Q: 1. Compute for the profitability ratios of both Elen and Melanie. Which of the two companies do you…
A: Profitability ratios consist of gross profit ratio, net profit ratio, and return of investment (ROI)…
Q: If you were interested in determining a company's ability to survive over a long period of time, you…
A: If you were interested in determining a company's ability to survive over a long period of time, you…
Q: Which of the following is true about the quick ratio? a. The quick ratio is calculated by dividing…
A: The ratio analysis helps to analyse the financial statements of the business.
Q: The ratio is the best overall measure of management's performance O a. Activity ratio b. Debt-equity…
A: Operating Efficiency Ratio- Operating Profit Margin/ Operating Efficiency ratio refers to the ratio…
Q: Select one: a. Financial
A: Introduction : A financial ratio, also known as an accounting ratio, is the magnitude of two…
Q: Carson Electronics’ management has long viewed BGT Electronics as an industry leader and uses this…
A: To Find: Debt ratio Average collection period Fixed asset turnover Return on equity
Q: Which of the following statements is true? OA. Profit margin is calculated by dividing total assets…
A: The accounting is a process to classify the financial transactions, record in journal and prepare…
Q: Using the following Balance Sheet summary information, calculate for the two companies presented: ⦁…
A: Current assets include: Inventory cash Accounts receivable Current liabilities include:…
Q: A. Other things being equal, which company appears to have the better liquidity position in terms of…
A: Financial ratios are those which provide a summary of the accounts of a company and helps an…
Q: No single ratio can predict the success or Failure of a company. What different types of Ratios are…
A: Different types of ratios necessary for financial analyses: 1. Working Capital ratio 2. Current…
Q: Hash Mark, Inc., reports a return on assets of 8% and a return on equity of 12%. Why do the two…
A: Return on assets and return on equity are financial measures used for determining the effectiveness…
Step by step
Solved in 2 steps
- Use the below information to answer the following questions: 20202021Sales$11,573$12,936Depreciation 1661 1736Cost of goods sold 3979 4707Other Expenses 846 924Interest Expense 776 926Cash 6067 6466Accounts Receivables 8034 9427Short-term Notes Payable 1171 1147Long-term debt 20,320 24,696Net fixed assets 50,888 54,273Accounts Payable 4384 4644Tax rate 26% 34%Inventory 14,283 15,288Payout ratio 33% 30% A. Create the Balance Sheets for 2020 & 2021.Use the below information to answer the following questions: 20202021Sales$11,573$12,936Depreciation 1661 1736Cost of goods sold 3979 4707Other Expenses 846 924Interest Expense 776 926Cash 6067 6466Accounts Receivables 8034 9427Short-term Notes Payable 1171 1147Long-term debt 20,320 24,696Net fixed assets 50,888 54,273Accounts Payable 4384 4644Tax rate 26% 34%Inventory 14,283 15,288Payout ratio 33% 30% A. Create the Income Statements for 2020 and 2021 (including dividends paid and retained earnings).Refer to the following data of OCT2023CPACompany: Assets to be realized 1,375,000Assets acquired 825,000 Liabilities liquidated 1,875,000Assets realized 1,200,000Liabilities not liquidated 1,700,000 Assets not realized 1,375,000Llabilities assumed 1,625,000Llabilities to be liquidated 2,250,000 Supplementary charges 3,125,000 Supplementary credits 2,800,000 Compute the beginning cash balance assuming that the ending balance of ordinary share and retained earnings are P1,200,000 and (400,000), respectively
- Refer to the following data of SG Company: Assets to be realized1,375,000Liabilities liquidated1,875,000Assets acquired825,000Liabilities not liquidated1,700,000Assets realized1,200,000Liabilities to be liquidated2,250,000Assets not realized1,375,000Supplementary charges3,125,000Liabilities assumed1,625,000Supplementary credits2,800,000Compute the beginning cash balance assuming that the ending balance of ordinary share and retained earnings are P1,200,000 and (400,000), respectively.Refer to the following data of SG Company: Assets to be realized1,375,000Liabilities liquidated1,875,000Assets acquired825,000Liabilities not liquidated1,700,000Assets realized1,200,000Liabilities to be liquidated2,250,000Assets not realized1,375,000Supplementary charges3,125,000Liabilities assumed1,625,000Supplementary credits2,800,000Compute the beginning cash balance assuming that the ending balance of ordinary share and retained earnings are P1,200,000 and (400,000), respectively.A. P1,325,000b. P1,475,000c. P2,075,000d. P1,450,000Use the information below to answer questions 3, 4, 5 and 6. 2020 2021 Sales$5,300 $5,900 Depreciation750850COGS24002900Interest180196Cash200500Accts Receivables200400Notes Payable800550Long-term debt15001950Net fixed assets30003500Accounts Payable250400Inventory700900Dividend payout30%30%Tax rate35%30% What is the ROE for 2021?
- 24 If K.mart.CO total assets is 600000, and total liabilities 400000, and goodwill 20000. Compute the identifiable net assets. Select one: a. 180000. b. 200000. c. 220000. d. 240000.E23.10B (L0 1,4) (Classification of Transactions) Following are selected balance sheet accounts of BioLazer Corp. at December 31, 2020 and 2019, and the increases or decreases in each account from 2019 to 2020. Also presented is selected income statement information for the year ended December 31, 2020, and additional information. Increase Selected balance sheet accounts 2020 2019 (Decrease)AssetsAccounts receivable $154,000 $120,000 $34,000Property, plant, and equipment 631,000 581,000 50,000Accumulated…The following information relates to Samson Engineering as at 30 June 2023: RProfit for the year180 000Drawings50 000Property920 000Long-term borrowings510 000Trade receivables380 000Plant and machinery250 000Trade payables180 000Short-term borrowings260 000Fixtures and fittings90 000Inventories420 000Equity at 1 July 20221 175 000Cash45 000Motor vehicles150 000 RequiredCalculate the following:The total non-current assets The total current assetsThe total assets
- A2 aii Use the following information for Delta Corporation: Year 20X1 20X2 Net sales $1,500,000 $1,656,598 Cost of goods sold 675,000 745,469 Depreciation 270,000 298,188 Interest paid 43,600 44,000 Cash 127,500 140,811 Account’s receivable 450,000 496,980 Inventory 525,000 579,809 Net fixed assets 1,800,000 1,987,918 Accounts payable 375,000 414,150 Notes payable 45,000 50,000 Long-term debt 500,000 500,000 Common stock 1,000,000 1,000,000 Retained earnings 982,500 1,241,368 Tax rate 35% 35% Dividend payout 30% 30% Delta has 600,000 common shares outstanding. The firm is projecting a 20% increase in net sales for the coming year (20X3). Delta uses the percentage of sales approach to plan for its financing needs. In using this approach, the firm assumes that cost of goods sold, all assets (current and fixed), and accounts payable will all remain a constant…2018 Total industry assets = STANBIC + BARCLAYS = 6,205,018 + 8,994,562 = 15,199,580Concentration of STANBIC = 6,205,018 / 15,199,580 = 0.408236 = 0.41 = 41%Concentration of BARCLAYS = 8,994,562 / 15,199,580 = 0.591764 = 0.59 = 59% 2019Total industry assets = STANBIC + ASBA = 9,295,682 + 11,772,546 = 21,068,228Concentration of STANBIC = 9,295,682 / 21,068,228 = 0.441218 = 0.44 = 44%Concentration of ASBA = 11,772,546 / 21,068,228 = 0.558782 = 0.56 = 56% 2020Total industry assets = STANBIC + ASBA =12,742,132 + 12,546,473 = 25,288,605Concentration of STANBIC = 12,742,132 / 25,288,605 = 0.503869 = 0.50 = 50%Concentration of ASBA = 12,546,473 / 25,288,605 =0.496131= 0.50 = 50% Based on the five-firm concentration ratios calculated in above, determine the level of competitiontion 8Income statement for the year ended 31 December, 2019 of KKMTN Ghana Ltd2018 2019ȼ ‘000 ȼ ‘000Turnover 420,000 523,600Cost of sales (330,000) (417,200)Gross profit 89,000 106,400Expenses:Administration 44,600 50,200Selling and distribution 15,400 (60,000) 19,600 (69,800)Profit before interest 29,000 36,600Debenture interest - (2,800)Net profit before tax 29,000 33,800Taxation (8,000) (10,000)Net Profit after tax 21,000 23,800Ordinary dividend paid 8,400 9,250Ordinary shares issued 12 million and trading at ȼ3 each as at yesterday onGSE.You are required to compute the following investment ratios:a). Earnings per shareb). Dividend per sharec). Payout ratiod). Price earnings ratioe). Earnings yield