Liquidity management Bauman Company's total current assets, total current liabilities, and inventory for each of the past 4 years follow Item 2019 2020 2021 Total current assets $17,440 $21,630 $22.920 Total current liabilities 12,890 12,630 9,090 5.270 Inventory 6,560 7,230 a. Calculate the firm's current and quick ratios for each year. Compare the resulting time series for these measures of liquidity b. Comment on the firm's liquidity over the 2019-2022 period c. If you were told that Bauman Company's inventory turnover for each year in the 2019-2022 penod and the industry averages were as follows, would this information support or conflict with your evaluation in part (b)? Why? Hem 2019 2020 a. Calculate the firm's current and quick ratios for each year. 2022 $26,480 16,920 7,510 2021 2022 LLL

Liquidity management Bauman Company's total current assets, total current liabilities, and inventory for each of the past 4 years follow Item 2019 2020 2021 Total current assets $17,440 $21,630 $22.920 Total current liabilities 12,890 12,630 9,090 5.270 Inventory 6,560 7,230 a. Calculate the firm's current and quick ratios for each year. Compare the resulting time series for these measures of liquidity b. Comment on the firm's liquidity over the 2019-2022 period c. If you were told that Bauman Company's inventory turnover for each year in the 2019-2022 penod and the industry averages were as follows, would this information support or conflict with your evaluation in part (b)? Why? Hem 2019 2020 a. Calculate the firm's current and quick ratios for each year. 2022 $26,480 16,920 7,510 2021 2022 LLL

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 4PB

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Ratio 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?
Calculate the following ratios based on the upcoming data based on the 2021 year-end. 13.1 Current Ratio 13.2 Quick Ratio 13.3 Debt to Equity 13.4 Working Capital 13.5 Earnings per share 13.6 Accounts Receivable turnover 13.7 Inventory Turnover 13.8 Average Collection Period 13.9 Average Sale Period 13.10 Return on Common Shareholders’ Equity 2021 2020 Current Assets Cash 10,000 6,500 Accounts Receivable 5,000 7,000 Inventory 15,000 10,000 Prepaids 2,000 3,500 Marketable Securities 23,000 20,000 Total Current Assets…
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Perform a liquidity and profitability analysis on your company utilizing the ratios listed below. Quick Ratio, Receivable Turnover, Days sales uncollected, inventory turnover, Days inventory on hand, payable turnover, days payable, asset turnover, return on assets, and return on equity. statement of operations 12 Months Ended Jul. 31, 2020 Jul. 31, 2019 Revenues: Revenues $ 1,497,826,000 $ 1,684,392,000 Costs and expenses: Operating expense - personnel, vehicle, plant and other 493,055,000 468,868,000 Operating expense - equipment lease expense 33,017,000 Equipment lease expense, preadoption 33,073,000 Depreciation and amortization expense 80,481,000 78,846,000 General and administrative expense 45,752,000 59,994,000 Non-cash employee stock ownership plan compensation charge 2,871,000 5,693,000 Asset impairments 0 0 Loss on asset sales and disposals 7,924,000 10,968,000 Operating income 148,670,000 113,028,000 Interest expense…
What is the year-over-year revenue change percent? Use the attached financial data to calculate the ratios for 2022. Round to the nearest decimal. Abercrombie & Fitch Co (ANF) Financial Data Revenues Cost of Sales Total Operating Expenses Interest Expense Income Tax Expense Diluted Weighted Shares Outstanding Cash + Equivalents Accounts Receivable Inventories Total Current Assets Total Assets Accounts Payable Total Current Liabilities Total Stockholders' Equity ANF Stock Price = $10.30 Select one O A. 5.3% B. 14.4% C. -1.4% O D. -3.5% 2022 $3,659.3 $1,545.9 $2,026.9 $28.5 $37.8 52.8 $257.3 $108.5 $742.0 $1,220.4 $2,694.0 $322.1 $935.5 $656.1 2021 $3,712.8 $1,400.8 $1,968.9 $34.1 $38.9 62.6 $823.1 $69.1 $525.9 $1,507.8 $2,939.5 $374.8 $1,015.2 $826.1
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.
In analysing the financial statements of Regis Ltd, the following ratios were calculated. Current ratio Quick ratio Receivables turnover Inventory turnover Payables turnover Gross profit margin Return on equity Required: 2023 1.1:1 0.5:1 30 days 3 times 60 days 10% 15% 2022 1.3:1 0.7:1 45 days 4 times 45 days 7% 12% (a) Evaluate the entity's liquidity using the above information. (b) A condition of obtaining a long-term loan from the Scots Bank is that the current ratio should not fall below 1.25:1. Examine the effect on this condition if Regis Ltd considers two courses of action: either to borrow cash with a long-term loan of $90,000 from the bank; or by negotiating with creditors to settle $90,000 of payables with a long-term Note Payable. Assuming the current assets and current liabilities are 660,000 and 600,000 respectively, what course of action would you recommend and why?
Current Position Analysis The following data were taken from the balance sheet of Albertini Company at the end of two recent fiscal years: Previous Year Current assets: Cash Marketable securities Accounts and notes receivable (net) Inventories Prepaid expenses. Total current assets. Current liabilities: Accounts and notes payable (short-term) Accrued liabilities Total current liabilities 1. Working capital 2. Current ratio: Current Year 3. Quick ratio b. The liquidity of Albertini has $356,400 412,700 168,900 1,547,700 797,300 $3,283,000 $388,600 281,400 $670,000 $278,400 313,200 104,400 1,167,500 746,500 $2,610,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. Current Year Previous Year $406,000 174,000 $580,000 from the preceding year to the current year. The working capital, current ratio, and quick ratio have all in current assets relative to current liabilities. Most of these changes are the…
Hello! look at the attached images and answer: (a) Calculate ratios for the year ended 31 December 2021 (showing your workings) for Primrose Plc, equivalent to those provided above. i. Return on year-end capital employed ii. Net asset turnover iii. Gross profit margin iv. Net profit margin v. Current ratio vi. Closing inventory holding period vii. Trade receivables’ collection period viii. Trade payables’ payment period ix. Dividend yield x. Dividend cover (b) Analyse the financial performance and position of Primrose Plc for the year ended 31 December 2021 compared to 31 December 2020. (c) Explain the uses and the general limitations of ratio analysis. Thanks a lot!
Using the fiscal year end 2020 annual report for General Mills, Inc. and the figures from the 2020 annual report as noted below, calculate the financial ratios for 2020 and 2019 indicated using the EXCEL template provided:1. Gross profit percentage2. Return on sales3. Asset turnover 4. Return on assets5. Return on common stockholders’ equity6. Current ratio7. Quick ratio8. Operating-cash-flow-to-current-liabilities ratio9. Accounts receivable turnoverTotal assets 2020 = $30,806.7Total stockholders’ equity 2020 = $8,349.5Total current liabilities 2020 = $7,491.5Accounts receivable 2020 = $1,615.1Inventory 2020 = $1,426.3Year-end closing stock price May 2020 = $58.80Year-end closing stock price May 2019 = $53.56 To calculate averages use (current year balance + poor year balance) / 2) Round percentages to 1 decimal place; round other answers to 2 decimal places.
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