Introduction to Managerial Accounting - Connect Access
8th Edition
ISBN: 9781260519020
Author: BREWER
Publisher: MCG
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Chapter IE, Problem 10IE
Financial Statement Ratio Analysis
Refer to the information pertaining to Endless Mountain Company that is provided in Integration Exercise S. In addition to the budget schedules that you prepared in Integration Exercise 8, insert a new tab in your Microsoft Excel worksheet titled "Ratio Analysis."
Required (For all questions, be sure to use formulas that link to the other tabs in your Microsoft Excel worksheet when performing your calculations):
1. To help assess the company's liquidity, calculate the following at December 31, 2017:
a.
b.
2. To help assess the company's asset management, calculate the following for 2017:
a.
b. Average collection period.
c.Inventory turnover.
d.Average sale period.
e. Operating cycle.
3. To help assess the company's debt management, calculate the following for 2017:
a. Times interest earned ratio.
b. Equity multiplier.
4. To help assess the company's profitability, calculate the following for 2017:
a.Net profit margin percentage.
b. Return on equity.
5. For each of the measures and ratios that you computed in requirements 1 through 4, indicate whether, generally speaking, management would prefer to see it increase or decrease over time. Support each answer with an explanation.
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Your Task…
Using your assigned financial statements calculate the required ratios below
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All values should be accurate to at least two decimal places.
The expectation is to submit a professional report free of grammar and spelling errors and easy to read. Think of this as a menu you would be handing to a customer.
All calculations are to be represented.
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You will be working with the Income Statement and Balance Sheet of Dell Technologies, Inc.
Working with the attached Excel spreadsheet, you are to determine the efficiency ratios and cash conversion cycle for Dell Technologies, Inc. for the years 2021 and 2020.
All the data, as well as a template, are provided to you.
A company has completed the operating budget and the cash budget. It is now preparing the budgeted balance sheet. Please use the below image as your guide for the next 5 questions.
Identify the document that contains equipment purchases
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B
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Chapter IE Solutions
Introduction to Managerial Accounting - Connect Access
Ch. IE - INTEGRATION EXERCISE I Different Costs for...Ch. IE - Absorption Costing, Variable Costing, Cost,...Ch. IE - Cash Budget, Income Statement, Balance Sheet,...Ch. IE - Prob. 4IECh. IE - Plantwide and Departmental Overhead Allocation;...Ch. IE - Normal Costing versus Actual Costing Darwin...Ch. IE - Prob. 7IECh. IE - Master Budgeting Endless Mountain Company...Ch. IE - Statement of Cash Flows Refer to the information...Ch. IE - Financial Statement Ratio Analysis Refer to the...
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