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
Chapter 13 Solutions
Connect Access Card for Financial Accounting: Information and Decisions
Ch. 13 - Explain the difference between financial reporting...Ch. 13 - Prob. 2DQCh. 13 - Prob. 3DQCh. 13 - Prob. 4DQCh. 13 - Prob. 5DQCh. 13 - Prob. 6DQCh. 13 - Prob. 7DQCh. 13 - Prob. 8DQCh. 13 - Prob. 9DQCh. 13 - Prob. 10DQ
Ch. 13 - Prob. 11DQCh. 13 - Prob. 12DQCh. 13 - Prob. 13DQCh. 13 - Prob. 14DQCh. 13 - Prob. 15DQCh. 13 - Prob. 16DQCh. 13 - Prob. 17DQCh. 13 - Financial reporting Cl. Which of the following...Ch. 13 - Prob. 2QSCh. 13 - Prob. 3QSCh. 13 - Prob. 4QSCh. 13 - Prob. 5QSCh. 13 - Prob. 6QSCh. 13 - Prob. 7QSCh. 13 - Prob. 8QSCh. 13 - Prob. 9QSCh. 13 - Prob. 1ECh. 13 - Prob. 2ECh. 13 - Prob. 3ECh. 13 - Prob. 4ECh. 13 - Prob. 5ECh. 13 - Prob. 6ECh. 13 - Prob. 7ECh. 13 - Prob. 8ECh. 13 - Risk and capital structure analysis P3 Refer to...Ch. 13 - Prob. 10ECh. 13 - Prob. 11ECh. 13 - Prob. 12ECh. 13 - Prob. 14ECh. 13 - Prob. 15ECh. 13 - Prob. 1PSACh. 13 - Prob. 2PSACh. 13 - Prob. 3PSACh. 13 - Prob. 4PSACh. 13 - Prob. 5PSACh. 13 - Prob. 6PSACh. 13 - Prob. 1PSBCh. 13 - Prob. 2PSBCh. 13 - Prob. 3PSBCh. 13 - Prob. 4PSBCh. 13 - Prob. 5PSBCh. 13 - Prob. 6PSBCh. 13 - Prob. 13SPCh. 13 - Prob. 1BTNCh. 13 - Prob. 2BTNCh. 13 - Prob. 3BTNCh. 13 - Prob. 7BTNCh. 13 - Prob. 9BTN
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