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Concept Introduction: Financial ratio is a quantitative method used to analyze and interpret financial statements for decision-making. Various financial
The inventory turnover ratios for 2021.
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Concept Introduction: Financial ratio is a quantitative method used to analyze and interpret financial statements for decision-making. Various financial ratios are liquidity ratios, efficiency ratios, and profitability ratios.
The average days in inventory for 2021.
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Concept Introduction: Financial ratio is a quantitative method used to analyze and interpret financial statements for decision-making. Various financial ratios are liquidity ratios, efficiency ratios, and profitability ratios.
The accounts receivable turnover for 2021.
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Concept Introduction: Financial ratio is a quantitative method used to analyze and interpret financial statements for decision-making. Various financial ratios are liquidity ratios, efficiency ratios, and profitability ratios.
The average collection period for 2021.
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Concept Introduction: Financial ratio is a quantitative method used to analyze and interpret financial statements for decision-making. Various financial ratios are liquidity ratios, efficiency ratios, and profitability ratios.
The total asset turnover for 2021.
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Concept Introduction: Financial ratio is a quantitative method used to analyze and interpret financial statements for decision-making. Various financial ratios are liquidity ratios, efficiency ratios, and profitability ratios.
The profit margin on sales for 2021.
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Concept Introduction: Financial ratio is a quantitative method used to analyze and interpret financial statements for decision-making. Various financial ratios are liquidity ratios, efficiency ratios, and profitability ratios.
The return on assets for 2021.
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Concept Introduction: Financial ratio is a quantitative method used to analyze and interpret financial statements for decision-making. Various financial ratios are liquidity ratios, efficiency ratios, and profitability ratios.
The return on equity for 2021.
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Concept Introduction: Financial ratio is a quantitative method used to analyze and interpret financial statements for decision-making. Various financial ratios are liquidity ratios, efficiency ratios, and profitability ratios.
The equity multiplier for 2021.
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Concept Introduction: Financial ratio is a quantitative method used to analyze and interpret financial statements for decision-making. Various financial ratios are liquidity ratios, efficiency ratios, and profitability ratios.
The return on equity using DuPont for 2021.
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Intermediate Accounting, 10 Ed
- Use the following information relating to Medinas Company to calculate the inventory turnover ratio, gross margin, and the number of days sales in inventory ratio, for years 2022 and 2023.arrow_forwardCalculate the projected inventory turnover, days sales outstanding (DSO), fixed assets turnover, and total assets turnover. How does Computron’s utilization of assets stack up against that of other firms in its industry?arrow_forwardCompute Altoona Companys (a) inventory turnover ratio and (b) number of days sales in inventory ratio, using the following information.arrow_forward
- Calculate the 2019 debt ratio, liabilities-to-assets ratio, times-interest-earned ratio, and EBITDA coverage ratios. How does Computron compare with the industry with respect to financial leverage? What can you conclude from these ratios?arrow_forwardJuroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: 1. Calculate the return on sales. (Note: Round the percent to two decimal places.) 2. CONCEPTUAL CONNECTION Briefly explain the meaning of the return on sales ratio, and comment on whether Juroes return on sales ratio appears appropriate.arrow_forwardRatio Analysis Consider the following information taken from the stockholders equity section: How do you interpret the companys payout and profitability performance? Required: 1. Calculate the following for 2020. (Note. Round answers to two decimal places.) 2. CONCEPTUAL CONNECTION Assume 2019 ratios were: and the current year industry averages are: How do you interpret the companys payout and profitability performance?arrow_forward
- Using the following select financial statement information from Black Water Industries, compute the accounts receivable turnover ratios for 2018 and 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Black Water Industries?arrow_forwardDefine each of the following terms: Liquidity ratios: current ratio; quick, or acid test, ratio Asset management ratios: inventory turnover ratio; days sales outstanding (DSO); fixed assets turnover ratio; total assets turnover ratio Financial leverage ratios: debt ratio; times-interest-earned (TIE) ratio; EBITDA coverage ratio Profitability ratios: profit margin on sales; basic earning power (BEP) ratio; return on total assets (ROA); return on common equity (ROE) Market value ratios: price/earnings (P/E) ratio; price/cash flow ratio; market/book (M/B) ratio; book value per share Trend analysis; comparative ratio analysis; benchmarking DuPont equation; window dressing; seasonal effects on ratiosarrow_forwardUse the following information relating to Singh Company to calculate the inventory turnover ratio and the number of days sales in inventory ratio.arrow_forward
- When the double-extension approach to the dollar-value LIFO inventory cost flow method is used, the inventory layer added in the current year is multiplied by an index number. How would the following be used in the calculation of this index number?arrow_forwardThe following select account data is taken from the records of Reese Industries for 2019. A. Use the data provided to compute net sales for 2019. B. Prepare a simple income statement for the year ended December 31, 2019. C. Compute the gross margin for 2019. D. Prepare a multi-step income statement for the year ended December 31, 2019.arrow_forwardUse the following hypothetical data for Walgreens in Years 11 and 12 to project revenues, cost of goods sold, and inventory for Year +1. Assume that Walgreenss Year +1 revenue growth rate, gross profit margin, and inventory turnover will be identical to Year 12. Project the average inventory balance in Year +1 and use it to compute the implied ending inventory balance.arrow_forward
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