Excel Applications for Accounting Principles
4th Edition
ISBN: 9781111581565
Author: Gaylord N. Smith
Publisher: Cengage Learning
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Textbook Question
Chapter 15, Problem 5R
Compare your printout from requirement 2 with your printout from requirement 4. From these two sets of ratios, what conclusions can be drawn concerning changes from 2012 and 2013?
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Please find the following ratios for both year 2017 and year 2018 based on following data
RATIO
AT
ROA
L
ROE
Please select THREE of the ratios listed below and perform them for years 2012 and 2011. Please interpret the data by including the following:
(1) Write out the formula for each ratio you selected and show your calculations.
(2) Discuss whether each ratio you selected measures liquidity or profitability and what those terms mean.
(3) What factor(s) contributed to the increase or decrease from last year? Discuss whether those changes were favorable or unfavorable to the company and why?
(4) What does each of your calculated ratios potentially mean for the company’s overall financial condition?
Please assume the market price of the common stock on 12/31/11 was $113.40.
Also, if you need any numbers from 2010 for averages, please use the following:
Cash 300,000
Marketable securities 1,000,000
A/R 345,000
Inventory 647,000
Prepaids 220,000…
Use the statements to calculate trend percentages for all components of both statements using 2013 as the base year and summarizing your findings about the financial health of the company, using the calculations as evidence to support your conclusions.
Chapter 15 Solutions
Excel Applications for Accounting Principles
Ch. 15 - The comparative financial statements of Global...Ch. 15 - The comparative financial statements of Global...Ch. 15 - a. What information does a comparison of the...Ch. 15 - Prepare a ratio analysis for Global Technology for...Ch. 15 - Compare your printout from requirement 2 with your...Ch. 15 - With the 2013 data still on the screen, click the...
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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
- Prepare a ratio analysis for Global Technology for 2013. The following information is available for 2013: The 2013 information should be entered in column B of the RATIOA2 worksheet. The 2012 information should be entered in column C. Save the revised file as RATIOA4. Print the worksheet when done.arrow_forwardCompute trend percents for the following accounts using 2015 as the base year. For each of the three accounts, state whether the situation as revealed by the trend percents appears to be favorable or unfavorable.arrow_forward. Using the calculated different ratios for Abcam in 2015 below. Comment on your result and contrast with the evolution in 2016 and 2017. At the end of each type of ratio, provide a short paragraph that gives a final note on the outlook for the company. Last, provide a final paragraph that summarise Abcam’s financial situation and give your recommendations to the management.arrow_forward
- The current ratio at December 2017 was: Equal or below 1.45 Between 1.46 and 2.92 Between 2.93 and 5.86 Equal or above 5.87 Not enough data provided to calculate itarrow_forwardCompare the resulting ratios of P and P Manufacturing Company for 2018 (per your computation) with its competitors in the table given below.arrow_forwardSelect data for Avis and Hertz for 2012 follow. Based only on this information and ratios that you construct, speculate on similarities and differences in the operations and financing decisions of the two companies based on similarities and differences in the ratios.arrow_forward
- Given the data in the following table, the current ratio in 2023 was… % (table is attached) 1) 2.89 2 ) 2.61 3) 1.97 4) 2.08 52.14arrow_forwardUsing the data for 2018 and the industry norms, compute the financial ratios that were discussed in this chapter (current ratio, return on assets, operating profit margin, total asset turnover, debt ratio, and return on equity).arrow_forwardRequired 1. Compute each year’s current ratio. Round ratios to one decimal. 2. Express the income statement data in common-size percents. Round percents to two decimals. 3. Express the balance sheet data in trend percents with 2017 as the base year. Round percents to two decimals. Analysis Component 4. Comment on any significant relations revealed by the ratios and percents computed.arrow_forward
- If Karp had used FIFO instead of LIFO, which of the following ratios computed as of31 December 2009 would most likely have been lower?A. cash ratioB. current ratioC. gross profit marginarrow_forwardCompare the performance of both companies with each other, for each of the calculated indicators and determine if it is necessary to make any adjustment or adjustments to better position the firm with the lowest performance, facing the end of the next fiscal year. Explain what adjustments you propose and why.arrow_forwardWhat is current ratio of 2004arrow_forward
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