Respond to the following in a minimum of 175 words: As discussed in the chapter, The Coca-Cola Company reported over $20 billion of investments accounted for under the equity method in 2017, and they reported investment revenue of more than $1 billion in 2017. Explain why Coke accounts for some of its investments by the equity method and what that means? Is the over $1 billion in revenue reported in 2017 cash they can use? Provide an explanation for your response.

O’Malley Corporation was incorporated and began business on January 1, 2017. It has been successful and now requires a bank loan for additional working capital to finance expansion. The bank has requested an audited income statement for the year 2020. The accountant for O’Malley Corporation provides you with the following income statement which O’Malley plans to submit to the bank. O’Malley CorporationIncome Statement Sales revenue       $850,000 Dividends       32,300 Gain on recovery of insurance proceeds from earthquake loss           38,500         920,800 Less:          Selling expenses   $101,100      Cost of goods sold   510,000      Advertising expense   13,700      Loss on obsolescence of inventories   34,000      Loss on discontinued operations   48,600      Administrative expense    73,400    780,800 Income before income tax       140,000 Income tax         56,000 Net income       $  84,000 Instructions Indicate the deficiencies in the…

Use Tableau to calculate and display the trends for the debt to equity and times interest earned ratios for each of the two companies in the period 2018-2021. the average debt to equity ratio and times interest earned ratio for companies in the General Retailers industry sector in a comparable time period are 1.92 and 10.6, respectively. 1. Other things being equal, do both companies appear to have the ability to meet their obligations as measured by the debt to equity ratio?   2. Based solely on the times interest earned ratios, do you reach the same conclusion as in Requirement 1?   3. Is the margin of safety provided to creditors by Discount Goods improving or declining in recent years as measured by the average times interest earned ratio?

Based on the ratios below, which of the two companies is most liquid? Assume that both companies have approached you seeking a six-month (short-term) loan in the amount of 30% of the respective company’s current assets. You have but one loan to give. To which company do you grant the loan? Please discuss each ratio. COMPANY 1(Data from left to right: 2018, 2019)     Accounts receivable turnover =Net Credit Sales/ Average Debtors =6643051 / 58752 =113.07 =6084766 / 71649 =84.92 Average Days to collect= 365 / Accounts receivable turnover =365 / 113.07= 3.22 365 / 84.92= 4.29  Inventory Turnover= COGS / Average Inventory = 3868119 / 954183 =4.05 =3559158 / 752562 =4.73 Average Inventory Period= 365 / Inventory Turnover = 365 / 4.05= 90.12 365 / 4.73 = 77.16 Company 2(Data years from left to right: 2018, 2019, 2020)   Accounts Receivable turnover Ratio = ( Net Credit sales / Average Accounts receivable ) From table A (5/7) 184.15 143.98 129.22   Avg Days to…

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.…

The Donahoo Western Furnishings Company was formed onDecember 31, 2014, with $1,000,000 in equity plus $500,000in long-term debt. On January 1, 2015, all of the firm’s capitalwas held in cash. The following transactions occurred duringJanuary 2015:• January 2: Donahoo purchased $1,000,000 worth of furniturefor resale. It paid $500,000 in cash and financed the balanceusing trade credit that required payment in 60 days.• January 3: Donahoo sold $250,000 worth of furniture that ithad paid $200,000 to acquire. The entire sale was on creditterms of net 90 days.• January 15: Donahoo purchased more furniture for $200,000.This time, it used trade credit for the entire amount of thepurchase, with credit terms of net 60 days.• January 31: Donahoo sold $500,000 worth of furniture,for which it had paid $400,000. The furniture was soldfor 10 percent cash down, with the remainder payablein 90 days. In addition, the firm paid a cash dividend of$100,000 to its stockholders and paid off $250,000 of…

The Coca-Cola Company reported over $20 billion of investments accounted for under the equity method in 2017, and they reported investment revenue of more than $1 billion in 2017. Explain why Coke accounts for some of its investments by the equity method and what that means? Is the over $1 billion in revenue reported in 2017 cash they can use?

A Preparation of Ratios Refer to the financial statements for Burch Industries in Problem 12-89A and the following data. Required: 1. Prepare all the financial ratios for Burch for 2019 and 2018 (using percentage terms where appropriate and rounding all answers to two decimal places). 2. CONCEPTUAL CONNECTION Explain whether Burchs short-term liquidity is adequate. 3. CONCEPTUAL CONNECTION Discuss whether Burch uses its assets efficiently. 4. CONCEPTUAL CONNECTION Determine whether Burch is profitable. 5. CONCEPTUAL CONNECTION Discuss whether long-term creditors should regard Burch as a high-risk or a low-risk firm. 6. Perform a Dupont analysis (rounding to two decimal places) for 2018 and 2019.

The statement of members equity for Bonanza, LLC, follows: a. What was the income-sharing ratio in 2016? b. What was the income-sharing ratio in 2017? c. How much cash did Thomas Dunn contribute to Bonanza, LLC, for his interest? d. Why do the member equity accounts of Idaho Properties, LLC, and Silver Streams, LLC, have positive entries for Thomas Dunns contribution? e. What percentage interest of Bonanza did Thomas Dunn acquire? f. Why are withdrawals less than net income?