g. Average collection period for accounts receivableh. P/E ratioi. Dividend-payout percentagej. Dividend yield2. Answer yes or no to each of these questions and indicate which of the computations in number 1support your answer:a. Have business operations improved?b. Has gross profit rate improved?c. Has the rate of return on sales deteriorated?d. Has the rate of return on owners’ investment increased?e. Is there a decrease in the effectiveness of collection efforts?f. Are dividends relatively more generous?g. Have the risks of insolvency changed significantly?h. Has the market price of the stock become cheaper relative to earnings?i. Has there been a worsening of the company’s ability to pay current debts on time?j. Has there been a decline in the cash return on the market value of the capital stock?k. Did the collectibility of the receivables improve?3. Basing your observations on only the available data and the ratios you computed, prepare somebrief comments on the company's operations and financial changes during the three years. 17-38 Financial RatiosThe annual reports of Milano SpA, an Italian clothing chain, included the following selected data(in millions):20X220X120X0Annual amounts:Net income€ 90*€ 60€ 25Gross margin on sales520380200Cost of goods sold980620300Operating expenses380295165Income tax expense502510Dividends declared and paid35155End-of-year amounts:Long-term assets€240€220€180Long-term debt856540Current liabilities655535Cash2010Accounts receivable857040Merchandise inventory1208560Paid-in capital205205205Retained income1105510*€ is the European euro.During each of the three years, 10 million shares of common stock were outstanding.Assume that all sales were on account and that the applicable market prices per share of stockwere € 90 for 20X1 and € 117 for 20X2.1. Compute each of the following for each of the last two years, 20X1 and 20X2:a. Rate of return on salesb. Rate of return on stockholders' equityc. Current ratiod. Ratio of total debt to stockholders’ equitye. Ratio of current debt to stockholders' equityf. Gross profit rate

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Answered: 1. Compute each of the following for…

1. Compute each of the following for each of the last two years, 20X1 and 20X2: a. Rate of return on sales b. Rate of return on stockholders’ equity c. Current ratio Rotio coftoto

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Find Out : (a)Earnings per share(b)Return on common stockholders' equity in %(c)Return on assets in %(d)Current ratio in :1(e)Accounts receivable turnover in times(f)Average collection period in days(g)Inventory turnover in times (h)Days in inventory in days (i)Times interest earned in times (j)Asset turnover in times (k)Debt to assets ratio in % (l)Free cash flow
Accounting Question
The income statement is a financial summary of the firm's operating results during a specified period Select one: O True O False on age CHAPTER 5- STOCK VALL ctivities CH3 Jump to...
NOTE: PLEASE ANSWER A, B, C AND D ONLY!!! ASAP
Can you help me with #11-#13?
A company’s comparative statements are given below. Please conduct the following analyses: a. Horizontal analysis (trend analysis) on the income statement b. Vertical analysis (common size financial statement analysis) on the income statement Note: When the dollar change is positive, it indicates that the value increased and therefore the % change should be positive. Therefore, when calculating % change involving a negative baseline value, use the absolute value of the baseline number in the denominator: % change = (new value - original baseline value)/|baseline value|. Otherwise the % change will be inconsistent with the real change. For example:Let's say item A changed from -10 to +10. Item A increased by 20 and thus should give rise to a positive % change. However, % change based on formula using the original value of -10 is -200% = [10-(-10)]/(-10).Let’s look at another example. Assume item B changed from -10…
Compute Return on equity ratio if Net Income:2.026 ; Sales:17.193 ;Total Assets: 31.483 ; Total Equity: 12.804. a) 17.82%b) 11.78%c) 15.82%d) 6.44%
Determine the following measures for 20Y2 (round to one decimal place, including percentages, except for per-share amounts): Return on common stockholders' equity Earnings per share on common stock Price-earnings ratio Dividends per share of common stock Dividend yield
A company reports the following year-end data: Sales of $100,000; Earnings per share of $5; Market price per (common) share of $50; and Annual cash dividends per share of $2. Compute the (a) dividend yield and (b) price-earnings ratio. Complete this question by entering your answers in the tabs below. Price Earnings Ratio Compute the dividend yield. Dividend Yield Choose Numerator: Dividend Yield Price Earnings Ratio Dividend Yield Choose Denominator: A company reports the following year-end data: Sales of $100,000; Earnings per share of $5; Market price per (common) share of $50; and Annual cash dividends per share of $2. Compute the (a) dividend yield and (b) price-earnings ratio. Complete this question by entering your answers in the tabs below. Compute the price-earnings ratio. Choose Numerator: Price-Earnings Ratio / Choose Denominator: Dividend yield Price Earnings Ratio >
2 Tiger Audio declared and paid a cash dividend of $7,925 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized information: Current Previous Income Statement $342,000 $281,000 175,650 166,350 63,600 6,400 96,350 28,905 Sales Revenue Cost of Goods Sold 159,000 122,000 52,930 5,670 63,400 19,020 Gross Profit Operating Expenses Interest Expense Income before Income Tax Expense Income Tax Expense (30%) Net Income $ 67,445 $ 44,380 Balance Sheet $ 72,520 32,900 49,000 151,000 $305,420 $ 45, 200 28,000 46,000 138, 200 Cash Accounts Receivable, Net Inventory Property and Equipment, Net Total Assets $257,400 $ 39,000 4,800 101,900 145,700 39,400 120,320 $ 37,000 4,000 116, 200 157, 200 39,400 60,800 Accounts Payable Income Tax Payable Note Payable (long-term) Total Liabilities Common Stock (par $1) Retained Earnings Total Liabilities and Stockholders' Equity $305,420 $257,400
Pet Boutique Corp. reported $4,549,230 of profit for 2023. On November 2, 2023, it declared and paid the annual preferred dividends of $261,880. On January 1, 2023, Pet Boutique had 73,500 and 567.000 outstanding preferred and common shares, respectively. The following transactions changed the number of shares outstanding during the year: Feb. 1 Declared and issued a 20% common share dividend.. Apr.30 Sold 119,130 common shares for cash. Sold 49,410 preferred shares for cash. Sold 37,800 common shares for cash. May 1 Oct. 31 a. What is the amount of profit available for distribution to the common shareholders? Earnings available to common shareholders b. What is the weighted average number of common shares for the year? Weighted average outstanding shares
Selected current year company information follows: Net income Net sales Total liabilities, beginning-year Total liabilities, end-of-year $ 16,553 718,855 89,932 109,201 Total stockholders' equity, beginning-year 204,935 Total stockholders' equity, end-of-year 130,851 What is the return on total assets? (Do not round intermediate calculations.).