Quiz- ANALYZING FINANCIAL POSITION

To assist in approaching the bank about the loan, Paul has asked you to compute the following ratios for both this year and last year. The amount of working capital The current ratio The acid-test ratio The average collection period (The accounts receivable at the beginning of last year totaled $250,000) The average sales period (The inventory at the beginning of last year totaled $500,000) The operating cycle The total asset turnover.  (The total assets at the beginning of last year were $2,420,000) The debt-to-equity ratio The times interest earned ratio The equity multiplier (The total stockholder’s equity at the beginning of last year totaled $1,420,000) Could you please help me answer 7-9?

To assist in approaching the bank about the loan, Paul has asked you to compute the following ratios for both this year and last year. The amount of working capital The current ratio The acid-test ratio The average collection period (The accounts receivable at the beginning of last year totaled $250,000) The average sales period (The inventory at the beginning of last year totaled $500,000) The operating cycle The total asset turnover.  (The total assets at the beginning of last year were $2,420,000) The debt-to-equity ratio The times interest earned ratio The equity multiplier (The total stockholder’s equity at the beginning of last year totaled $1,420,000)   2. For both this year and last year A. Present the balance sheet in common-size format B. Present the income statement in common-size format down through net income     Could I please have somed help with Question 10 with a breakdown of the explanation?

Aggressive Corporation approaches Matt Taylor, a loan officer for Oklahoma State Bank, seeking toincrease the company's borrowings with the bank from $100,000 to $150,000. Matt has an uneasyfeeling as he examines the loan application from Aggressive Corporation, which just completed itsfirst year of operations. The application included the following financial statements The income statement submitted with the application shows a net income of $30,000 in the first yearof operations. Referring to the balance sheet, this net income represents a more-than-acceptable15% rate of return on assets of $200,000.Matt's concern stems from his recollection that the $100,000 note payable reported on the balancesheet is a three-year loan from his bank, approved earlier this year. He recalls another promising newcompany that, just recently, defaulted on its loan due to its inability to generate sufficient cash flowsto meet its loan obligations.Seeing Matt's hesitation, Larry Bling, the CEO of…

Hey, I'm having problems trying to find the solution for e and f. can you guys help! Six Measures of Solvency or Profitability The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Property, plant, and equipment (net)         $3,200,000 Liabilities:             Current liabilities     $1,000,000       Mortgage note payable, 6%, issued 2005, due 2021     2,000,000       Total liabilities         $3,000,000 Stockholders’ equity:             Preferred $10 stock, $100 par (no change during year)         $1,000,000   Common stock, $10 par (no change during year)         2,000,000 Retained earnings:             Balance, beginning of year $1,570,000           Net income 930,000   $2,500,000       Preferred dividends $100,000           Common dividends 400,000   500,000       Balance, end of year         2,000,000 Total stockholders’ equity         $5,000,000 Sales         $18,900,000 Interest expense…

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Upon further investigation, you hare found that the amount of account payables for Companies A and X at the start of the year is 20,000 and 30,000, respectively. Apart from that, the amount of credit purchase for Companies A and Bis 250,000 and 280,000, respectively. Based on all this information, recommend on which company that gire lower risk to your company. The recommendation must be ustified by the following analysis:. a) Liquidity analysis. b) Solvency analysis. c) Any other financial analysis that you. think can help in making your decision. Table: Balance Sheet for Company A and Company B Assets 280,000 110,000 140,000 100,000 100,000 730,000 Fixed Assets Other Non-Current Assets 250,000 80,000 120,000 80,000 120,000 650,000 Account Receivables Inventory Cash ТОTAL Liabilities Capital Long Term Debt Account Payables Other Current Liabilities ТОTAL 250,000 120,000 160,000 120,000 650,000 280,000 140,000 180,000 130,000 730,00

As an analyst for National Bank, it is your job to write recommendation to the bank loan committee. Curry Company has submitted the summary at top of page to support Curry’s request for $100,000 loan. Required Analyze these financial statement data to decide whether the bank should lend $100,000 to Curry Company. Write a one- paragraph recommendation to the loan committee. Income Statement Data:                                                19X5              19X4                19X3 Total Revenue                                                               850,000        770,000           720,000 Total Expenses                                                             640,000         570,000           540,000 Net Income                                                                 210,000         200,000           180,000   Statement of Owner’s Equity Data;                            19X5                19X4               19X3 Beginning capital…

I'm studying for a test and I want to know how to do each question for it, can you walk me through step by step how to solve this one?   The following data concern XYZ Corporation for 2018:Bad debts expense for the year 11,000Accounts receivable—December 31, 2018 235,000Credit sales during the yearAllowance for doubtful accounts—December 31, 20181,600,00018,000 Calculate the net realizable value of the accounts receivable.

Aggressive Corporation approaches Matt Taylor, a loan officer for Oklahoma State Bank, seeking to increase the company’s borrowings with the bank from $100,000 to $150,000. Matt has an uneasy feeling as he examines the loan application from Aggressive Corporation, which just completed its first year of operations. The application included the following financial statements.     The income statement submitted with the application shows net income of $30,000 in the first year of operations. Referring to the balance sheet, this net income represents a more-thanacceptable 15% rate of return on assets of $200,000. Matt’s concern stems from his recollection that the $100,000 note payable reported on the balance sheet is a three-year loan from his bank, approved earlier this year. He recalls another promising new company that, just recently, defaulted on its loan due to its inability to generate sufficient cash flows to meet its loan obligations. Seeing Matt’s hesitation, Larry Bling, the CEO…

Aggressive Corporation approaches Matt Taylor, a loan officer for Oklahoma State Bank, seeking to increase the company's borrowings with the bank from $100,000 to $150,000. Matt has an uneasy feeling as he examines the loan application from Aggressive Corporation, which just completed its first year of operations. The application included the following financial statements. The income statement submitted with the application shows a net income of $30,000 in the first year of operations. Referring to the balance sheet, this net income represents a more-than-acceptable 15% rate of return on assets of $200,000. Matt's concern stems from his recollection that the $100,000 note payable reported on the balance sheet is a three-year loan from his bank, approved earlier this year. He recalls another promising new company that, just recently, defaulted on its loan due to its inability to generate sufficient cash flows to meet its loan obligations. Seeing Matt's hesitation, Larry Bling, the CEO…

Financial decisions often place heavier emphasis on one type of financial statement over the others. Consider each of the following hypothetical situations independently. PNC Bank is considering extending a loan to a small company. The company would be required to make interest payments at the end of each year for 5 years, and to repay the loan at the end of the fifth year. Instructions In each of the situations above, state whether the decision-maker would be most likely to place primary emphasis on information provided by the income statement, balance sheet, or statement of cash flows. In each case, provide a brief justification for your choice. Choose only one financial statement in each case.

Spiceland Corporation is in the process of obtaining a loan at City Bank. The bank has requested audited financial statements. Spiceland’s financial statements have never been audited before. It has prepared the following comparative financial statements for the years ended December 31, 2023, and 2022. Spiceland Corporation Comparative Statement of Financial Position For the Years Ended December 31, 2023 and 2022 Current assets: 2023 2022               Cash and cash equivalents 1,205,000 800,000               Accounts receivable 1,960,000 1,480,000               Allowance for bad debts (185,000) (90,000)               Inventory 1,035,000 1,010,000               Total current assets 4,015,000 3,200,000       Noncurrent assets:                   Property, plant and equipment    835,000    847,500               Accumulated depreciation    (608,000)    (532,000)               Total noncurrent assets…

The following are excerpts from the financial statements of 2018 and 2019 of Mandela Corporation.   2019 2018 Sales $187,600 $195,000 Accounts Receivable (net): Beginning of Year 68,100 66,500 End of Year 60,200 68,100   A newly hired manager has started implementing new credit policies.   Required:   a. As a consultant, you are contracted to analyze Accounts Receivable Turnover and Number of Days’ Sales in Receivable and provide opinion as to whether Mandela’s credit policy changes are working b. What conclusions does your analysis suggest. Are the new credit policies working?

Why are Old Men so Daggum Stubborn (OMDS) had the following information for the previous calendar year:  Operating income: $66,880 Invested assets: $167,200 Sales: $836,000 What is OMDS' return on investment? For percentages, please enter your answer as a decimal (i.e., 20% is 0.20). For dollar amounts, please provide your answer to two decimal places (i.e. $3.00 is 3.00)

You are a Corporate Credit Analyst for your bank. A new corporate customer in the manufacturing sector approached your bank for a large credit facility in the sum of $20 million for production equipment and warehousing. The customer submitted the following financials to you.    The cash position increased from $6.7 million in 2019 to $16 million in 2021. Does this signal a strengthening of the liquidity position of the firm? Explain.