Financial Accounting-w/cd-package
3rd Edition
ISBN: 9780131060876
Author: REIMERS
Publisher: PEARSON
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Chapter 10, Problem 21EA
1.
To determine
Determine
2.
To determine
Determine accounts receivable turnover ratio for the year January 31, 2011.
3.
To determine
Determine inventory turnover ratio for the year January 31, 2011.
4.
To determine
Determine debt-to-equity ratio for the years January 31, 2011
5.
To determine
Determine return on equity ratio for the years January 31, 2011.
To determine
Explain whether the determined ratios reveal any threats for the company.
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The comparative financial statements of Bettancort Inc. are as follows. The market price of Bettancort Inc. common stock was $71.25 on December 31, 2014.
InstructionsDetermine the following measures for 2014, rounding to one decimal place:1. a.Working capital
b. Current ratio
c. Quick ratiod. Accounts receivable turnovere. Number of days' sales in receivablesf. Inventory turnoverg. Number of days' sales in inventoryh. Ratio of fixed assets to long-term liabilitiesi. Ratio of liabilities to stockholders’ equityj. Number of times interest charges are earnedk. Number of times preferred dividends are earned2. a. Ratio of net sales to assetsb. Rate earned on total assetsc. Rate earned on stockholders' equityd. Rate earned on common stockholders' equitye. Earnings per share on common stockf. Price-earnings ratiog. Dividends per share of common stockh. Dividend yield
Following are the financial statements of AB Ltd. for 2010.
From the aforementioned table, calculate the following:
1. Current ratio
2. Liquid ratio
3. Receivables turnover ratio and collection period
4. Inventory turnover and holding period
5. Fixed assets turnover
6. Total assets turnover
7. Debt ratio
8. D/E ratio
9. Interest coverage ratio
10. PAT margin
11. ROA
12. ROE
13. EPS
14. D/P ratio
15. P/E ratio
16. Book value per share
The comparative statements of Dubai Company are presented below.
All sales were on account. The allowance for doubtful accounts was $3,200 on December 31, 2017, and $3,000 on December 31, 2020.
Required:
1- Compute the following ratios for 2021. (Weighted average common shares in 2021 were 62,500.)
Earnings per share.
Return on common stockholders’ equity.
Return on assets.
Current.
Acid-test.
Accounts receivable turnover.
Inventory turnover.
Times interest earned.
Asset turnover.
Debt to assets.
2. Based on the ratios calculated, discuss briefly the improvement or lack thereof in financial position and operating results from 2020 to 2021 of Dubai Company.
Chapter 10 Solutions
Financial Accounting-w/cd-package
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