What is the correct date line for a statement of financial position?O from December 31, 2015O for the year ended December 31, 2015none of theseO for the accounting year ended December 31, 2015as at December 31, 2015Question 25Which of the following statements best describes the limitation of financial ratios.Financial ratios tell where a particular operation is or is not doing well but doesn't report why or how to improve the situation.Financial ratios tell a story and give management options for improving performance.Financial ratios are best used internally and can be misinterpreted when used by lenders or investors.None of these.O Financial ratios are difficult to calculate, change over time, and acceptable levels vary among different industries.

Answer: as at December 31st, 2015

Answered: What is the correct date line for a…

Business

Accounting

What is the correct date line for a statement of financial position?

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter13: Financial Statement Analysis

Section: Chapter Questions

Problem 13.5AMCP

See similar textbooks

Similar questions

Below is the balance sheet and income statement for Chin Corporation. You are needed to analyze the financial statements. Use the horizontal, vertical, ratio methods to analyze the financial statements. For the vertical and horizontal analysis, type the accounts and dollar values for the years 2018 and 2017 (as listed on the financial statements even if there is no dollar value for an account). For the ratio analysis, make sure to compute 2 ratios from each section. Income Statement Period Ending: 12/31/2018 12/31/2017 Total Revenue $76,512,000 $78,291,000 Cost of Revenue $54,884,000 $56,586,000 Gross Profit $21,628,000 $21,706,000 Operating Expenses Research and Development $0 $0 Sales, General, and Admin. $13,886,000 $13,599,000 Non-Recurring Items $0 $0 Other Operating Items $0 $0 Operating Income $7,832,000 $8,079,000 Add'l income/expense items -$323,000…
Certain financial ratios for The Gap for its most recent year are given below, along with the average ratios for its industry. Based on those ratios, answer the following. 1) Does The Gap seem to prefer to finance its assets with debt or with equity? How can you tell? What percent of its assets are funded with debt? What percent of its assets are funded with equity? 2) A supplier to The Gap sells merchandise to The Gap and asks to be paid within 60 days. While any of The Gap’s financial ratios might be of interest to the supplier, which of the ratios listed below do you think would likely be the most important one to the supplier? Why? 3) Which of the ratios presented suggest that, compared to its industry, The Gap may have a problem controlling its operating expenses? How can you tell? Your answer should clearly indicate that you understand why the ratio that you chose answers this question. Here is the data for The Gap and its industry. Financial Ratios…
Following are the auditor’s calculations of several key ratios for ROCO. The primary purpose of this information is to understand the client’s business and assess the risk of financial failure, but any other relevant conclusions are also desirable. Ratio 2020 2019 2018 2017 2016 1 Current ratio 2.42 2.83 3.17 3.20 3.25 3.15 2 Quick ratio 1.60 2.25 2.92 2.87 2.64 2.58 3 Times interest earned 2.35 2.76 3.38 4.81 6.12 4.86 4 Accounts receivable turnover 3.31 4.42 3.13 4.25 4.50 4.48 5 Days to collect receivables 110.27 82.58 116.61 85.88 81.11 81.47 6 Inventory turnover 1.08 .96 1.45 2.24 2.26 2.01 7 Days to sell inventory 337.96 380.2 251.72 162.94 161.5 181.59 8 Profit margin .52 .51 .62 .57 .53 .6 9 Return on assets .08 .08 .13 .1 .08 .11 10 Return on equity .05 .06 .10 .10 .11 .09 11…
When analyzing a company's current ratio: A. the industry in which the company operates should not be considered. B. most successful businesses operate with current ratios between 0.1 and 0.5. C. the current ratio measures the company's ability to pay all liabilities (current and long-term) with current assets. D. a current ratio of less than 1.00 means that current liabilities exceed current assets.
1. Compute the following ratios for the comparative periods (2018 and 2019). The company used 365 days in its computation for some of the ratios. Show your solution. d. Accounts Receivable Turnover Ratio e. Average Collection Period f. Inventory Turnover Ratio g. Average Days in Inventory h. Number of days in Operating Cycle i. Debt to Total Assets Ratio j. Debt to Equity Ratio k. Times Interest Earned Ratio l. Gross Profit Ratio m. Profit Margin Ratio n. Return on Assets o. Return on Equity p. Assets Turnover Ratio
Which of the following statements is not true about the current ratio? A benchmark of 3.00 to 1.00 is believed to be the ideal benchmark for the current ratio of a company. The current ratio measures an organization’s liquidity. The current ratio is found by dividing current assets by current liabilities. A current ratio below 1.00 to 1.00 signals the potential for financial difficulties.
The financial statements for Tyler Toys, Inc. are shown in the popup window: LOADING... . Calculate the debt ratio, times interest earned ratio, and cash coverage ratio for 2013 and 2014 for Tyler Toys. Should any of these ratios or the change in a ratio warrant concern for the managers of Tyler Toys or the shareholders? Tyler Toys, Inc. Income Statement for Years Ending December 31, 2013 and 2014 2014 2013 Revenue $14,146,575 $13,566,748 Cost of goods sold $-8,448,000 $-8,132,335 Selling, general, andadministrative expenses $-998,406 $-980,458 Depreciation $-1,497,529 $-1,471,013 EBIT $3,202,640 $2,982,942 Interest expense $-376,217 $-354,594 Taxes $-1,074,041 $-998,772 Net income $1,752,382 $1,629,576 Right-click on the table and select Copy to Clipboard and then right-click the highlighted texts in the popup dialogue box and select Copy in order to paste its…
The Corrigan Corporation’s 2015 and 2016 financial statements follow,along with some industry average ratios.a. Assess Corrigan’s liquidity position, and determine how it compares with peers and how the liquidity position has changed over time.b. Assess Corrigan’s asset management position, and determine how it compares with peers and how its asset management efficiency has changed over time.c. Assess Corrigan’s debt management position, and determine how it compares with peers and how its debt management has changed over time.d. Assess Corrigan’s profitability ratios, and determine how they compare with peers and how its profitability position has changed over time.e. Assess Corrigan’s market value ratios, and determine how its valuation compares with peers and how it has changed over time.f. Calculate Corrigan’s ROE as well as the industry average ROE, using the DuPont equation. From this analysis, how does Corrigan’s financial position compare with the industry average numbers?g.…
Most decisions made by management impact the ratios analysts use to evaluate performance. Indicate (by letter) whether each of the actions listed below will immediately increase (I), decrease (D), or have no effect (N) on the ratios shown. Assume each ratio is less than 1.0 before the action is taken. CAn you explain how to solve these not just the answers? 1. Issuance of long-term bonds 2. Issuance of short-term notes 3. Payment of accounts payable 4. Purchase of inventory on account 5. Purchase of inventory for cash 6. Purchase of equipment with a 4-year note 7. Retirement bonds 8. Sale of common stock 9. Write-off of obsolete inventory 10. Purchase of short-term investment for cash 11. Decision to refinance on a long-term basis some currently maturing debt
(Ratio Computations and Effect of Transactions) Presented below is information related to Carver Inc. Check the image below for information. Instructions(a) Compute the following ratios or relationships of Carver Inc. Assume that the ending account balances are representative unless the information provided indicates differently.(1) Current ratio.(2) Inventory turnover.(3) Accounts receivable turnover.(4) Earnings per share.(5) Profit margin on sales.(6) Return on assets on December 31, 2017.(b) Indicate for each of the following transactions whether the transaction would improve, weaken, or have no effect on the current ratio of Carver Inc. at December 31, 2017.(1) Write off an uncollectible account receivable, $2,200.(2) Purchase additional capital stock for cash.(3) Pay $40,000 on notes payable (short-term).(4) Collect $23,000 on accounts receivable.(5) Buy equipment on account.(6) Give an existing creditor a short-term note in settlement of account.
Refer to the above company’s financial statements. Calculate the current and quick ratios. Has the company’s liquidity position improved or worsened? Explain. A computer manufacturer has financial statements as follows: Income Statements for Year Ending December 31 (Thousands of Dollars) 2019 2018 Sales $945,000 $900,000 Expenses excluding depreciation and amortization 812,700 774,000 EBITDA $132,300 $126,000 Depreciation and amortization 33,100 31,500 EBIT $99,200 $94,500 Interest Expense 10,470 8,600 EBT $88,730 $85,900 Taxes (25%) 22,183 21,475 Net income $66,547 $64,425 Common dividends $56,609 $54,115 Addition to retained earnings $9,938 $10,310 Balance Sheets for Year Ending December 31 (Thousands of Dollars) Assets 2019 2018 Cash and cash equivalents…
The financial statements for Tyler Toys, Inc. are shown in the popup window: LOADING... . Calculate the profit margin, return on assets, and return on equity for 2013 and 2014 for Tyler Toys. Should any of these ratios or the change in a ratio warrant concern for the managers of Tyler Toys or the shareholders? Tyler Toys, Inc. Income Statement for Years Ending December 31, 2013 and 2014 2014 2013 Revenue $14,146,094 $13,567,551 Cost of goods sold $-8,448,688 $-8,131,338 Selling, general, and administrative expenses $-998,878 $-980,620 Depreciation $-1,497,580 $-1,472,740 EBIT $3,200,948 $2,982,853 Interest expense $-376,634 $-354,060 Taxes $-1,073,239 $-998,941 Net income $1,751,075 $1,629,852 Right-click on the table and select Copy to Clipboard and then right-click the highlighted texts in the popup dialogue box and select Copy in order to paste its…