HA206_M3_Ratio Analysis
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Jan 9, 2024
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HA206 Module 3: Ratio Analysis
Directions:
Complete the table below. 1.
Calculate the ratios for Johnson & Johnson and Pfizer Inc. To do this, you will need to search online to locate the latest 2 annual financial statements for these companies (don’t use the TTM one). Copy and paste the URL for the financial statements in the box under the company name. See the example worksheet for guidance.
a.
Please note that for most ratios, you will only need to use the latest annual financial statement, but for some you may need to calculate the average which will require using the latest 2. b.
Be sure to show your work.
c.
You can assume that preferred dividends are 0 for any calculations even if they are not actually 0.
2.
For each ratio, note which one of the companies has the better ratio and why it is better. 3.
Paste a screenshot of the price for each company at the end of the worksheet.
Johnson & Johnson (JNJ)
Johnson & Johnson (JNJ) Income Statement - Yahoo
Finance
Pfizer Inc. (PFE)
Pfizer Inc. (PFE) Stock Price, News, Quote & History - Yahoo Finance
Which company’s ratio is better and why?
Working Capital Ratio
(WCR)
Current assets:
187,278,000
Current Liabilities: 110,574,000
WCR=1.69
Current assets:
197,205,000
Current Liabilities: 101,289,000
WCR=1.95
Pfizer ratio is better because it is higher meaning more assets to pay off any liabilities. Earnings Per Share (EPS)
EPS: 6.86
EPS:5.59
J&J ratio is better. Making higher earnings per share
Price-Earnings Ratio (P/E)
Price: 156.10
EPS: 6.86
Price: 28.64
EPS: 5.59
Pfizer is better due to higher ratio on price/earnings per share
P/E: 4.17
P/E: 5.12
Return on Equity (ROE)
Net income:
17,941,000/ Stock holders equity76,804,000=
0.23
Net income: 31,372,000
Stockholders Equity: 95,661,000
0.32
Pfizer is better due to higher return
Operating Margin
Operating Income:
23,703,000
Revenue:
94,943,000
0.25
Operating Income:
37,272,000
Revenue:
100,330,000
0.37
J&j is better due to lower ratio of operating income/revenue
Debt-to-Assets
Total debt:
39,659,000
Total asset: 187,378,000
=0.21
Total debt:
34,870,000
Total asset: 197,205,000
=0.17
Pfizer is better due to having a lower ratio for debt
Inventory Turnover
Cost of Revenue: 38,089,000
Missing other half? Could not find info needed.
Cost of revenue: 34,344,000
Missing other half? Could not find info needed.
Operating Cash Flow Ratio
Operating Cash Flow:
21,194,000
Current Liabilities:
55,802,000
0.38
Operating Cash Flow:
29,267,000
Current Liabilities:
42,138,000
0.69
Pfizer Ratio is better due to it being higher meaning it is in better position for liquidity and lower risk of default
Asset Turnover
Sales:
Net assets:
Sales:
Net assets:
Days Sales in Inventory
Info not found on site?
Info not found on site?
Return on Assets
Info not found on site?
Info not found on site?
Price Screenshot:
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Please help me with this accounting question problem , image is clear pls download if no visible
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Required
Prepare a vertical analysis of both the balance sheets and income statements for Year 4 and Year 3.
Complete this question by entering your answers in the tabs below.
Analysis Bal Analysis Inc
Sheet
Stmt
Prepare a vertical analysis of the balance sheets for Year 4 and Year 3. (Percentages may not add exactly due to rounding.
Round your answers to 2 decimal places. (i.e., .2345 should be entered as 23.45).)
PEREZ COMPANY
Vertical Analysis of Balance Sheets
Year 4
Year 3
Percentage of
Total
Percentage of
Total
Amount
Amount
Assets
Current assets
Cash
$ 17,400
% $ 12,600
%
Marketable securities
21,000
7,600
Accounts receivable (net)
54,700
46,900
Inventories
136,200
144,400
Prepaid items
25,700
11,800
Total current assets
255,000
223,300
Investments
28,100
21,000
Plant (net)
270,500
255,100
Land
29,700
24,900
Total long-term assets
328,300
301,000
Total assets
$ 583,300
$ 524,300
Liabilities and stockholders' equity
Liabilities
Current liabilities
Notes payable
$ 16,100
$
5,000…
arrow_forward
Required
Prepare a vertical analysis of both the balance sheets and income statements for Year 4 and Year 3.
Complete this question by entering your answers in the tabs below.
Analysis Bal Analysis Inc
Sheet
Stmt
Prepare a vertical analysis of the balance sheets for Year 4 and Year 3. (Percentages may not add exactly due to rounding. Round your
answers to 2 decimal places. (i.e., .2345 should be entered as 23.45).)
ALLENDALE COMPANY
Vertical Analysis of Balance Sheets
Year 4
Year 3
Amount
Amount
Assets
Current assets
Cash
$ 40,000
$36,000
Marketable securities
20,000
6,000
Accounts receivable (net)
54,000
46,000
Inventories
135,000
143,000
Prepaid items
25,000
10,000
Total current assets
274,000
241,000
27,000
20,000
270,000
255,000
29,000
24,000
Total long-term assets
326,000
299,000
Total assets
$ 600,000
$540,000
Liabilities and stockholders' equity
Liabilities
Current liabilities
Notes payable
$ 17,000
$
6,000
Accounts payable
113,800
100,000
Salaries payable
21,000
15,000
151,800…
arrow_forward
Required
Prepare a vertical analysis of both the balance sheets and income statements for Year 4 and Year 3.
Complete this question by entering your answers in the tabs below.
Analysis Bal Analysis Inc
Sheet
Stmt
Prepare a vertical analysis of the balance sheets for Year 4 and Year 3. (Percentages may not add exactly due to rounding. Round your
answers to 2 decimal places. (i.e., .2345 should be entered as 23.45).)
ALLENDALE COMPANY
Vertical Analysis of Balance Sheets
Year 4
Year 3
Amount
% Total
Amount
% Total
Assets
Current assets
Cash
$ 40,000
% $ 36,000
%
Marketable securities
20,000
6,000
Accounts receivable (net)
54,000
46,000
Inventories
135,000
143,000
Prepaid items
25,000
10,000
Total current assets
274,000
241,000
Investments
27,000
20,000
Plant (net)
270,000
255,000
Land
29,000
24,000
Total long-term assets
326,000
299,000
Total assets
$ 600,000
100.00
$ 540,000
100.00
Liabilities and stockholders' equity
Liabilities
Current liabilities
Notes payable
$ 17,000
$
6,000…
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Required
Prepare a vertical analysis of both the balance sheets and income statements for Year 4 and Year 3.
Complete this question by entering your answers in the tabs below.
Analysis Bal
Sheet
Analysis Inc
Stmt
Prepare a vertical analysis of an income statements for Year 4 and Year 3. (Percentages may not add exactly due to rounding.
Round your answers to 2 decimal places. (i.e., .2345 should be entered as 23.45).)
ALLENDALE COMPANY
Vertical Analysis of Income Statements
Year 4
Year 3
Amount
% Total
Amount
% Total
Revenues
Sales (net)
$ 230,000
100.00 %
$ 210,000
100.00 %
Other revenues
8,000
5,000
Total revenues
238,000
215,000
Expenses
Cost of goods sold
120,000
103,000
Selling, general, and administrative expense
55,000
50,000
Interest expense
8,000
7,200
Income tax expense
23,000
22,000
Total expenses
206,000
182,200
Net income
$ 32,000
%
$ 32,800
%
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complete the table in the question, use the second image for support
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For the first picture, I need help finding the decimal number beside each number
For the second picture I need assistance with the GPM, R&D ETS, SG&A ETS
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Solar Solutions began operations on January 1, 2015, and is now in its sixth year of operations. It is a retail sales company with a large amount of online sales.
The adjusted trial balance as of December 31, 2020 appears below, along with prior year balance sheet data and some additional transaction data for 2020.
SOLAR SOLUTIONS
Adjusted Trial Balance
12/31/2020
2020
2019
Account Title
Adjusted Trial Balance
Post-Closing Trial Balance
Debit
Credit
Debit
Credit
Cash
$
122,200
55,000
125,600
Accounts Receivable
35,000
Prepaid Insurance
5,000
6,000
|Inventory
Office Equipment
Machinery & Tools
Accumulated Depreciation
Accounts Payable
Salaries Payable
Sales Tax Payable
Note Payable-Long Term
Common Stock, $10 par
46,000
15,600
63,000
47,000
59,000
21,000
21,000
16,000
11,200
16,800
2,600
2,700
2,000
4,000
31,000
22,100
240,000
160,000
Retained Earnings
28,600
28,600
Dividends
10,000
Sales Revenue
Cost of Goods Sold
Rent Expense
Salaries Expense
235,000
127,600
20,000
36,000
Insurance…
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Complete a financial analysis of the company financials for Quixote Consulting. Use the Excel Template titled: "Unit 4 Financial Report Analysis Template.” Be sure to review the Excel tab titled “Hints & Instructions” before you attempt the assignment tab.
Note: This Quixote Company file will be your graded Unit 4 assignment, not the Rainbow Company practice assignment.
When you are ready, you may submit your Quixote Ratio Analysis Excel template to the Unit 4 Dropbox page.
Note: Include your name in the filename of the assignment.
Very Important Note: The Practice Set is based on data for “Rainbow Paint Company.” Do NOT submit the Rainbow solutions in the Unit 4 assignment Dropbox.
The Unit 4 assignment is based on the Quixote data accumulated in Units 2 and 3. However, The Rainbow Paint Company data will be a VITAL and integral component of your Unit 9 final project. So, please complete the practice exercise AND keep your work saved in a file for later use.
Quixote Consulting…
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I am having trouble with creating ratios or formulas from missing numbers. I need help. Please show formulas
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