Connect Access Card for Financial Accounting: Information and Decisions
Connect Access Card for Financial Accounting: Information and Decisions
8th Edition
ISBN: 9781259662966
Author: John J Wild
Publisher: McGraw-Hill Education
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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. a. Working Capital b. Current Ratio c. Acid Test Ratio 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
QUESTION 2: The percentages of some items related to the Balance Sheet and Income Statements of XYZ Sanayi ve Ticaret A.Ş. for the years 2016-2017-2018-2019 and 2020, obtained by using the Trend Percentages (Trend) Analysis Method, are given in the table below. transactions Stocks Current Assets 2016 2017 2018 2019 2020 100 240 350 570 1200 100 140 990 Tangible Fixed Assets 100 110 130 150 400 Short-Term Liabilities Net Sales 100 160 310 490 1050 100 200 300 530 1000 Desired: Using the trend percentages in the table above; • Current Assets-Inventories Relationship, • Tangible Assets-Net Sales Relationship, • Interpret the Current Assets-Short-Term Liabilities relationship.
Liquidity management Bauman Company's total current assets, total current liabilities, and inventory for each of the past 4 years follow Item 2019 2020 2021 Total current assets $17,440 $21,630 $22,920 Total current liabilities 12,890 9,090 5.270 Inventory 6,560 Hem a. Calculate the firm's current and quick ratios for each year. Compare the resulting time series for these measures of liquidity b. Comment on the firm's liquidity over the 2019-2022 period c. If you were told that Bauman Company's inventory turnover for each year in the 2019-2022 penod and the industry averages were as follows, would this information support or conflict with your evaluation in part (b)? Why? 2019 2020 12,630 7,230 a. Calculate the firm's current and quick ratios for each year. 2022 $26,480 16,920 7,510 2021 2022 LLL
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Financial ratio analysis; Author: The Finance Storyteller;https://www.youtube.com/watch?v=MTq7HuvoGck;License: Standard Youtube License