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What company is better in short-term and why

What company is better in short-term and why

Survey of Accounting (Accounting I)
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 9.4.3P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...
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What company is better in short-term and why
Paragraph Ratio Analysi Formula $20,245/ $11.245=1.8 current Current ratio assets/ $48,750/ $50,450=0.9 Current liabilities Account Net sales/ 61.750/8100=7.6 Receivab Average 362.000/4120-87.8 le accounts Turnove receivabl r e, net 365/7.6-48 Average 365/ Collectio Account n Period Receivable 365/87.8-4.15 Turnover Inventor Cost of Y goods Turnove sold/ Average inventory Days in Average Inventor inventory Y / cost of good sold 365 current net cash Cash provided Debt by operating Coverag activities/ average current liability Profit Net Margin income/n et sales Al Pan Otha da, im Inc 1.8 0.9 7.6 87.8 48.02 4.15 4.97 0.8 73.3 428.5 0.45 0.50 0.05 0.03 Interpret ation 39,900/8,020-4.97 27,680/32,500=0.8 8.020/39,900*365=73. 3 32.500/27,680*365=42 8 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
Transcribed Image Text:Paragraph Ratio Analysi Formula $20,245/ $11.245=1.8 current Current ratio assets/ $48,750/ $50,450=0.9 Current liabilities Account Net sales/ 61.750/8100=7.6 Receivab Average 362.000/4120-87.8 le accounts Turnove receivabl r e, net 365/7.6-48 Average 365/ Collectio Account n Period Receivable 365/87.8-4.15 Turnover Inventor Cost of Y goods Turnove sold/ Average inventory Days in Average Inventor inventory Y / cost of good sold 365 current net cash Cash provided Debt by operating Coverag activities/ average current liability Profit Net Margin income/n et sales Al Pan Otha da, im Inc 1.8 0.9 7.6 87.8 48.02 4.15 4.97 0.8 73.3 428.5 0.45 0.50 0.05 0.03 Interpret ation 39,900/8,020-4.97 27,680/32,500=0.8 8.020/39,900*365=73. 3 32.500/27,680*365=42 8 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
Asset Net sales/ 61,750/43,850+41,850 /2= 1.44 Turnove Average total assets 362,000/159,750+161, 250/2-2.25 Return Net 3,245/41,850=0.077 on income/t Assets otal 13,580/159,750=0.08 assets Return Net 3245- income- 495/13,240+ 15450= on Preferred Commo 0.19 dividend/A Stockhol verage common 13,580- der's stockholde 3850/62480+71,450=0 Equity rs equity 1.44 2.25 0.077 0.08
Transcribed Image Text:Asset Net sales/ 61,750/43,850+41,850 /2= 1.44 Turnove Average total assets 362,000/159,750+161, 250/2-2.25 Return Net 3,245/41,850=0.077 on income/t Assets otal 13,580/159,750=0.08 assets Return Net 3245- income- 495/13,240+ 15450= on Preferred Commo 0.19 dividend/A Stockhol verage common 13,580- der's stockholde 3850/62480+71,450=0 Equity rs equity 1.44 2.25 0.077 0.08
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