Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN: 9781285595047
Author: Weil
Publisher: Cengage
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Using the following year-end information for Calvin’s Clothing, calculate the current ratio and acid-test ratio for the business:
Cash
$ 60,230
Short-term investments
16,000
Accounts receivable
62,000
Inventory
310,000
Prepaid expenses
7,770
Accounts payable
110,000
Other current payables
32,500
Analysts following the Tomkovick Golf Company were given the following balance sheet information for the years ended June 30, 2011 and June 30, 2010:
Assets
2011
2010
Cash and marketable securities
$33,411
$16,566
Accounts receivable
303,585
318,768
Inventory
380,439
352,740
Other current assets
41,251
29,912
Total current assets
$758,686
$717,986
Plant and equipment
2,013,377
1,609,898
Less: Accumulated depreciation
(500,702)
(206,678)
Net plant and equipment
$1,512,675
$1,403,220
Goodwill and other assets
382,145
412,565
Total assets
$2,653,506
$2,533,771
Liabilities and Stockholders' Equity
2011
2010
Accounts payable and accruals
$378,236
$332,004
Notes payable
14,487
7,862
Accrued income taxes
21,125
16,815
Total current liabilities
$413,848
$356,681
Long-term debt
709,044
793,515
Total liabilities
$1,122,892…
The accounting information collected from the MCM company is detailed in the attached tables. Prepare the following:
Calculate the following financial ratios: Current ratio, acid test ratio, participation ratio, profit margin.
Financial information was collected for the month of September 210 for the company MCM.
Balance
Bills to pay
$35000
receivable accounts
$29000
bonds payable
$110000
buildings (net value)
$605000
cash on hand
$17000
dividends payable
$8000
inventary
$31000
terrain
$450000
long-term mortgage payable
$450000
retained earnings
$154000
stock values
$375000
transaction in september 2010
category
Amount
workforce
$50000
bills
insurance
$20000
sales
$62000
rent and maintenance
$40000
salary
$110000
others
$62000
total
$294000
income taxes
$20000
finished goods inventory as of September 1, 2010
$25000
finished goods inventory as of September 30, 2010
$50000
materials inventory…
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- Financial statement analysis The financial statements for Nike, Inc., are presented in Appendix D at the end of the text. Use the following additional information (in thousands): Instructions 1. Determine the following measures for the fiscal years ended May 31, 2016, and May 31, 2015. Round ratios and percentages to one decimal place. a. Working capital b. Current ratio c. Quick ratio d. Accounts receivable turnover e. Number of days sales in receivables f. Inventory turnover g. Number of days sales in inventory h. Ratio of liabilities to stockholders equity i. Asset turnover j. Return on total assets. k. Return on common stockholders equity l. Price-earnings ratio, assuming that the market price was 54.90 per share on May 29, 2016, and 52.81 per share on May 30, 2015 m. Percentage relationship of net income to sales 2. What conclusions can be drawn from these analyses?arrow_forwardFinancial Statement Analysis The financial statements for Nike, Inc., are presented in Appendix C at the end of the text. The following additional information (in thousands) is available: Instructions 1. Determine the following measures for the fiscal years ended May 31, 2013 (fiscal 2012), and May 31, 2012 (fiscal 2011), rounding to one decimal place. a. Working capital b. Current ratio c. Quick ratio d. Accounts receivable turnover e. Number of days sales in receivables f. Inventory turnover g. Number of days sales in inventory h. Ratio of liabilities to stockholders equity i. Ratio of sales to assets j. Rate earned on total assets, assuming interest expense is 23 million for the year ending May 31, 2013, and 31 million for the year ending May 31, 2012 k. Rate earned on common stockholders equity l. Price-earnings ratio, assuming that the market price was 61.66 per share on May 31, 2013, and 53.10 per share on May 31, 2012 m. Percentage relationship of net income to sales 2. What conclusions can be drawn from these analyses?arrow_forwardReal-world annual report The financial statements for Nike, Inc. (NKE), are presented in Appendix E at the end of the text. The following additional information is available (in thousands): Instructions 1. Determine the following measures for the fiscal years ended May 31, 2017, and May 31, 2016. Round ratios and percentages to one decimal place. a. Working capital b. Current ratio c. Quick ratio d. Accounts receivable turnover e. Number of days sales in receivables f. Inventory turnover g. Number of days sales in inventory' h. Ratio of liabilities to stockholders equity i. Asset turnover j. Return on total assets, assuming interest expense is 82 million for the year ending May 31. 2017, and 33 million for the year ending May 31, 2016. k. k. Return on common stockholders equity l. Price-eamings ratio, assuming that the market price was 52.81 per share on May 31, 2017, and 54.35 per share on May 31, 2016. m. m. Percentage relationship of net income to sales 2. What conclusions can be drawn from these analyses?arrow_forward
- Lowes Companies Inc., a major competitor of The Home Depot in the home improvement business, operates over 1,700 stores. Lowes recently reported the following balance sheet data (in millions): a. Determine the total stockholders equity at the end of Years 2 and 1. b. Determine the ratio of liabilities to stockholders equity for Year 2 and Year 1. Round to two decimal places. c. What conclusions regarding the risk to the creditors can you draw from (b)? d. Using the balance sheet data for The Home Depot in Exercise 1-26, how does the ratio of liabilities to stockholders equity of Lowes compare to that of The Home Depot?arrow_forwardAnalyze and compare Zynga, Electronic Arts, and Take-Two Data (in millions) from recent financial statements of Zynga Inc. (ZNGA), Electronic Arts Inc. (EA), and Take-Two Interactive Software, Inc. (TTWO) are as follows: a. Compute the working capital for Year 2 and Year 1 for each company. b. Which company has the largest working capital? c. Compute the current ratio for Year 2 and Year 1 for each company. Round to one decimal place. d. For Year 2, rank the companies from most liquid to least liquid based upon the current ratio.arrow_forwardAnalyze and compare J. C. Penney and Macys J. C. Penney Company, Inc. (JCP) and Macys, Inc. (M) are large department store chains in the United States. Information from recent annual reports for both companies is as follows (in millions): a. Determine the days cash on hand for each company. Round to one decimal place. b. Which company has the better liquidity position?arrow_forward
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