EP HORNGREN'S FINAN.+MGRL.ACCT.-ACCESS
7th Edition
ISBN: 9780136516309
Author: MILLER-NOBLES
Publisher: PEARSON CO
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 15, Problem 3QC
Vertical analysis of Liberty's
a. Cash as 9.50% of total assets.
b. inventory turnover of 6 times.
c. a
d. a 17% increase in Cash.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Liberty Corporation reported the following figures:
Account
2016
2015
Cash and cash equivalents
$ 2 450
$ 2 094
Receivables
1 813
1611
Inventory
1 324
1 060
Prepaid expenses
1 709
2 120
Total current assets
$ 7 296
$ 6 885
Other assets
18 500
15 737
$25 796
$ 7 230
Total assets
$22 622
Total current liabilities
$ 8 467
Non-current liabilities
4 798
3 792
Share capital
6 568
4 363
Retained earnings
7 200
6 000
Total liabilities and equity
$25 796
$22 622
2006
Sales
$20 941
Cost of sales
7 055
Selling and general expenses
7 065
Interest expense
210
Income tax expense
2 563
Profit
$ 4 048
Assuming that all sales were on account, calculate the following risk ratios for 2024.
Risk Ratios1. Receivables turnover ratio 38.3 times2. Average collection period 9.5 days3. Inventory turnover ratio 15.1 times4. Average days in inventory 24.2 days5. Current ratio 4.0 6. Acid-test ratio ? 7. Debt to equity ratio ? %8. Times interest earned ratio ? times
Using the financial statements in the image, calculate the following ratios for both the FY 2017 and FY 2018:
Current Ratio
Quick Ratio
Total Asset Turnover
Average Collection
Total Debt to Total Assets
Times Interest Earned
Net Profit Margin
Return on Assets
Return on Equity
Modified Du Point Equation for FY 2018
PE Ratio
Market to Book Ratio
Chapter 15 Solutions
EP HORNGREN'S FINAN.+MGRL.ACCT.-ACCESS
Ch. 15 - What part of the Libertys annual report is written...Ch. 15 - Horizontal analysis of Liberty's balance sheet for...Ch. 15 - Vertical analysis of Liberty's balance sheet for...Ch. 15 - Which statement best describes Liberty's acid-test...Ch. 15 - Liberty's inventory turnover during 2017 was...Ch. 15 - Prob. 6QCCh. 15 - Prob. 7QCCh. 15 - Liberty's rate of return on common stockholders'...Ch. 15 - The company has 2,500 shares of common stock...Ch. 15 - What ate the three main ways to analyze financial...
Ch. 15 - What is an annual report? Briefly describe the key...Ch. 15 - Prob. 3RQCh. 15 - What is trend analysis, and how does it differ...Ch. 15 - Prob. 5RQCh. 15 - Prob. 6RQCh. 15 - Prob. 7RQCh. 15 - Briefly describe the ratios that can be used to...Ch. 15 - Prob. 9RQCh. 15 - Briefly describe the ratios that can be used to...Ch. 15 - Briefly describe the ratios that can be used to...Ch. 15 - Prob. 12RQCh. 15 - Prob. 13RQCh. 15 - Prob. 15.1SE
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Selected ratios of Company X are shown below: Inventory turnover Days' sales uncollected Days' purchases in accounts payable Total asset turnover Equity ratio Times interest earned 2021 5.3 32.4 21.0 2.6 0.8 N.A. 2020 7.1 18.3 20.0 2.5 0.8 N.A. Using the financial ratios provided, analyse the performance of Company X in 2021 compared to the previous year.arrow_forward8. Trend Ratios, Application of some Financial Ratios and their Interpretation Some of the balance sheet and income statement figures of Sapphire Mfg. CO. for 2016, 2017 and 20181 are as follows. 2018 P30,000 2016 2017 Quick assets P40,000 P48,000 65,000 25,000 80,000 50,000 Current assets 50,000 40,000 110,000 200,000 Investments 160,000 135,000 Plants, property and equipment, net Total assets 250,000 265,000 Current liabilities 45,000 50,000 100,000 75,000 Long Term debt Total stockholders' equity 40,000 50,000 105,000 125,000 125,000 Total liabilities and stockholders' Equity 200,000 400,000 240,000 250,000 265,000 Sales 375,000 500,000 Cost of goods sold Operating expenses (including Depreciation of P10,000) 255,000 290,000 110,000 95,000 105,000 Net income 50,000 50,000 130,000 a) Compute for the trend ratios based on the above given data and give your interpretation of the 2017 and 2018 figures.arrow_forward3. Complete the below table to calculate the balance sheet data in trend percents with 2017 as base year. (Round your percentage answers to 2 decimal places.) KORBIN COMPANY Balance Sheet Data in Trend Percents December 31, 2019, 2018 and 2017 2019 2018 2017 Assets Current assets % % 100.00 % Long-term investments 100.00 Plant assets, net 100.00 Total assets % % 100.00 % Liabilities and Equity Current liabilities % % 100.00 % Common stock 100.00 Other paid-in capital 100.00 Retained earnings 100.00 Total liabilities and equity % % 100.00 % see picturesarrow_forward
- Using the financial statements in the image, calculate the following ratios for both the FY 2017 and FY 2018: Current Ratio Quick Ratio Total Asset Turnover Average Collection Total Debt to Total Assets Times Interest Earned Net Profit Margin Return on Assets Return on Equity Modified Du Point Equation for FY 2018 PE Ratio Market to Book Ratioarrow_forwardCalculate 1. Return on equity 2. Inventory Turnover 3. Accounts Receivable Turnoverarrow_forward2. Calculate each ratio for Company A using the 2020 information from the balance sheets and income statements given below. Current Ratio Quick Ratio Debt/Equity Times Interest Earned Inventory Turnover Return on Assets (ROA) Return on Equity (ROE) Market-to-book Ratio Company A Consolidated Balance Sheet (in thousands) December 31 2020 2019 Assets Current Assets: Cash and Cash Equivalents $380,626 $349,953 Accounts Receivable, net $80,545 $62,312 Inventory $30,096 $21,555 Prepaid Expenses and other current assets $57,076 $54,129 Total Current Assets $548,343 $914,794 Property and Equipment $1,458,690 $1,379,254 Operating Lease Assets $2,800,222 $1,258,293arrow_forward
- Solve and perform the different financial ratios using the financial statements of XYZ Company for the year 2021. 1. Current Ratio 2. Quick Ratio 3. Receivables Turnover 4. Inventory Turnover 5. Debt Ratio 6. Equity Ratio 7. Times Interest Earned 8. Gross Profit Margin 9. Operating Profit Margin 10. Net Profit Marginarrow_forwardFind the following financial ratios for LVMH Moet Hennessy Louis Vuitton SA (use year-end figures rather than average values where appropriate) (Round your answers to 2 decimal places (e.g., 32.16).) : 2015 2016 Short-term solvency ratios: Current ratio Quick ratio Cash ratio Asset utilization ratios: Total asset turnover Inventory turnover Receivables turnover Long-term solvency ratios: Total debt ratio Debt–equity ratio Equity multiplier Times interest earned ratio Profitability ratios: Profit margin % % Return on assets % % Return on equity % %arrow_forward2. Based on the balance sheet, Are the earnings per share increasing or decreasing? Explainarrow_forward
- Calculate the following ratios: return on equity, return on assets (levered), return on sales (levered), asset turnover, and financial leverage.arrow_forwardUsing the fiscal year end 2019 annual report for General Mills, Inc. and the figures from the 2017 annual report as noted below, calculate the financial ratios for 2019 and 2018 indicated using the EXCEL template provided: Gross profit percentage Return on sales Asset turnover Return on assets Return on common stockholders’ equity Current ratio Quick ratio Operating-cash-flow-to-current-liabilities ratio 9. Accounts receivable turnover Total assets 2017 = $21,812.6 Total stockholders’ equity 2017 = $4,327.9 Total current liabilities 2017 = $5,330.8 Accounts receivable 2017 = $1,430.1 Inventory 2017 = $1,483.6 Year-end closing stock price May 2019 = $50.93 Year-end closing stock price May 2018 = $39.37arrow_forwardThe condensed financial statements of Blossom Company for the years 2019 and 2020 are presented below. BLOSSOM COMPANY Balance Sheets December 31 (in thousands) 2020 2019 Current assets Cash and cash equivalents $330 $360 Accounts receivable (net) 630 560 Inventory 580 510 Prepaid expenses 130 160 Total current assets 1,670 1590 Property, plant, and equipment (net) 410 380 Investments 170 170 530 510 Intangibles and other assets $2,780 $2,650 Total assets $980 $950 Current liabilities Long-term liabilities 600 500 Stockholders' equity-common 1,200 1,200 Total liabilities and stockholders equity $2780 $2,650 BLOSSOM COMPANY Income Statements For the Year Ended December 31 (in thousands) 2019 2020 $3,920 $3,580 Sales revenue Costs and expenses Cost of goods sold 1,130 1050 Selling & administrative expenses 2400 2,330 Interest expense 10 20 Total costs and expenses 3,540 3400 Income before income taxes 380 180 Income tax expense 152 72 $228 $108 Net incomearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
Financial ratio analysis; Author: The Finance Storyteller;https://www.youtube.com/watch?v=MTq7HuvoGck;License: Standard Youtube License