Following are the financial statements of ABC Ltd. for 2010 Requirement:Calculate and interpret following ratios:1. Current ratio2. Liquid ratio3. Receivables turnover ratio and collection period4. Inventory turnover and holding period5. Fixed assets turnover Balance sheet (S in millions)Income statement ($ inmillions)Assets2010 Liabilities and2010owners' equityCurrent liabilities:2010Current assets:Sales3,400200 Accounts payableAccounts receivable 500 Bills payable400 Total currentCash400Cost of goods sold1,200100Office and sellingеxpenses600Inventory500liabilitiesDepreciation102Total current assets 1.100 Long-term liabilities:Earnings beforeinterest and taxes1,498Long-term debt200Fixed assets:Interest expense10Total long-termliabilities2,400 Shareholders' funds:200Earnings before taxes1,488Property, plant, andequipmentТахes607Net income8812,100 Equity share capital(Si per share)300 Reserves & SurplusLess: Accumulated200depreciationDividends635Net fixed assets500Transfer to reserves and246Total owners' equitysurplus700Other informationNumber of shares2001,400 Total liability andowners' equityTotal assets1,400Outstanding (millions)Price per share7.31

Answered: Image /qna-images/answer/80003833-c290-4fcd-a4e5-d78dcdd86d42.jpg

Answered: 1. Current ratio 2. Liquid ratio 3.…

Business

Accounting

1. Current ratio 2. Liquid ratio 3. Receivables turnover ratio and collection period

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Required 1. Compute each year’s current ratio. Round ratios to one decimal. 2. Express the income…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Review of the financial statements revealed the following for Cullumber Inc.: sales $1256000, net…

A: The common-size statements are prepared by the entities to analyze the percent variation in the…

Q: (A)Prepare ratio analyses (for 2019, 2018, and 2017) for both companies.You should include the…

A: “Since you have asked multiple sub-parts, we will solve the first three sub-parts for you. If you…

Q: Using the fiscal year end 2019 annual report for General Mills, Inc. and the figures from the 2017…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Required: (a) You are required to calculate the following ratios: (iv) Return on Capital Employed…

A: Lets understand the basics. Return on capital employed ratio shows how much earning before interest…

Q: Accounts receivable Inventory Total assets . Selected financial ratios computed from the statements…

A: Current Ratio / Quick Ratio Current Ratio - Current Asset / Current Liability This Ratio suggest…

Q: Below are financial ratios for XYZ Corporation and comparative ratios for XYZ Corporations industry.…

A: The company uses ratios to evaluate the performance of the entity. The different type of ratios…

Q: Using the fiscal year end 2020 annual report for General Mills, Inc. and the figures from the 2020…

A: Ratio analysis is a quantitative method of gaining insight into a company's liquidity, operational…

Q: We are given the following information for Pettit Corporation. Sales (credit) Cash Inventory Current…

A: Formua used Receivables Turonver Ratio = Credit Sales/Average ReceivablesCurrent Ratio = Current…

Q: Using the fiscal year end 2020 annual report for General Mills, Inc. and the figures from the 2020…

A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…

Q: 1. Provide the equation for each ratio listed. 2. What does each ratio listed tell you about the…

A: Introduction:- Ratio analysis used identify the business performance of the company. It is used to…

Q: Explain the major financial ratios and financial cycles, debt ratio, debt to equity ratio, return on…

A: The below ratios are computed using the 2016 financial statements of Walmart Company.

Q: Which of the following types of quantitative information are required to be disclosed in Form 10-K…

A: A company is required to disclose all the material information to the users of the financial…

Q: Profitability ratios include all of the following EXCEPT a.current ratio. b.asset turnover. c.return…

A: The profitability ratios measures the ability of the company to generate income with respect to…

Q: The company’s profitability on each dollar invested in assets is represented by which of the…

A: The correct option is option “C”. Return on assets.

Q: QUESTION 5 REQUIRED 5.1 Use the information provided below to calculate the following ratios for…

A: As posted to answer 5.1.4 , 5.1.5 , 5.1.6 so we are answering only those parts.

Q: The current year financial statements for Blue Water Company and Prime Fish Company are presented…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: The primary focus of horizontal analysis isa. the income statement only.b. the balance sheet only.c.…

A: Financial statements can be analysed by using two methods. 1) Vertical method. 2) Horizontal method.…

Q: Define each of the following terms: d. Forecasted financial statement approach using percentage of…

A: Forecasted financial statement approach using percent of sales: This process begins with future…

Question

Following are the financial statements of ABC Ltd. for 2010

Requirement:

Calculate and interpret following ratios:

1. Current ratio

2. Liquid ratio

3. Receivables turnover ratio and collection period

4. Inventory turnover and holding period

5. Fixed assets turnover

Balance sheet (S in millions)
Income statement ($ in
millions)
Assets
2010 Liabilities and
2010
owners' equity
Current liabilities:
2010
Current assets:
Sales
3,400
200 Accounts payable
Accounts receivable 500 Bills payable
400 Total current
Cash
400
Cost of goods sold
1,200
100
Office and selling
еxpenses
600
Inventory
500
liabilities
Depreciation
102
Total current assets 1.100 Long-term liabilities:
Earnings before
interest and taxes
1,498
Long-term debt
200
Fixed assets:
Interest expense
10
Total long-term
liabilities
2,400 Shareholders' funds:
200
Earnings before taxes
1,488
Property, plant, and
equipment
Тахes
607
Net income
881
2,100 Equity share capital
(Si per share)
300 Reserves & Surplus
Less: Accumulated
200
depreciation
Dividends
635
Net fixed assets
500
Transfer to reserves and
246
Total owners' equity
surplus
700
Other information
Number of shares
200
1,400 Total liability and
owners' equity
Total assets
1,400
Outstanding (millions)
Price per share
7.31

Video Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

find one financial report for a company listed in bursa malaysia and find CURRENT RATIO,QUICK RATIO ,NET PROFIT MARGIN,RETURN ON ASSSET,INVENTORY TURNOVER,RECIEVABLE TURNOVER,DEBT RATIO,DEBT TO EQUITY
Calculate all from 1 to 15 the following ratios 1-Current Ratio 2-Quick Ratio 3-Cash Ratio 4-Receivables Turnover 5-Inventory Turnover 6-Payables Turnover 7-Debt-Equity Ratio 8-Debt Ratio 9-Total Asset Turnover 10-Fixed Asset Turnover 11-Equity Turnover 12-Gross Profit Margin 13-Operating Profit Margin 14-Net Profit Margin 15-ROA 16- ROE Balance sheet Group Parent Company 31 December 2018 31 March 2018 31 December 2018 31 March 2018 Notes RO RO RO RO ASSETS Non-current Property, plant and equipment 5 6,406,433 7,113,759 3,683,610 4,182,275 Investment in subsidiaries - - 515,750 515,750 Fixed deposit 9.1 1,048,399 - 1,048,399 - Deferred tax assets 27 675,393 537,722 727,632 602,078 Non-current assets 8,130,225 7,651,481 5,975,391 5,300,103 Current Inventories 6 4,481,209 3,832,010…
a. Compute the current ratio for the current year. (Abbreviations used: STI = Short-term investments. Round your answer to two decimal places, X.XX.) Current ratio More Info a. Current ratio b. Cash ratio c. Acid-test ratio d. Inventory turnover e. Days' sales in inventory f. Days' sales in receivables g. Gross profit percentage Print Done Choose from any list or enter any number in the input fields a Financial Statements Balance Sheet: Cash Short-term Investments Net Accounts Receivables Merchandise Inventory Prepaid Expenses Total Current Assets Total Current Liabilities Income Statement: Net Credit Sales Cost of Goods Sold $ Current Year Preceding Year 15,000 $ 11,000 56,000 64,000 13,000 159,000 132,000 465,000 317,000 29,000 27,000 94,000 82,000 7,000 239,000 89,000
Which of the following ratios best measures the profitability of a company? a) Return on equity b) Gross margin c) Current ratio d) Net operating asset turnover
Resolve and explain the result of the current ratio for XYZ Company and compare andexplain this result with the Industry average, where current liabilities = $581,000 andcurrent assets = $832,000. a. Resolve the current ratio for XYZ Company b.Explain the result of the current ratio for XYZ Company c.Compare and explain the result of the current ratio for XYZ Company with the Industryaverage.
Some recent financial statements for Smolira Golf, Incorporated, follow. Assets Current assets Cash Accounts receivable Inventory Total Fixed assets Net plant and equipment Total assets Sales Cost of goods sold Depreciation EBIT Interest paid Taxable income Taxes SMOLIRA GOLF, INCORPORATED 2022 Income Statement Net income Dividends Retained earnings 2021 Short-term solvency ratios a. Current ratio b. Quick ratio c. Cash ratio Asset utilization ratios d. Total asset turnover e. Inventory turnover f. Receivables turnover Long-term solvency ratios g. Total debt ratio h. Debt-equity ratio i. Equity multiplier j. Times interest earned ratio k. Cash coverage ratio Profitability ratios I. Profit margin m. Return on assets n. Return on equity $3,061 4,742 12,578 $ 20,381 SMOLIRA GOLF, INCORPORATED Balance Sheets as of December 31, 2021 and 2022 2022 Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Other $ 52,746 $ 73,127 2021 $ 188,370 126, 703 5,283 $ 56,384…
a spreedsheet is needed to complete for this question. PR17-04b from Cegage accounting 2 (financial statement analysis)
The current asset section of the Excalibur Tire Company's balance sheet consists of cash, marketable securities, accounts receivable, and inventory. The balance sheet revealed the following: Inventory Total assets Current ratio Acid-test ratio Debt to equity ratio $ 880,000 $ 3,200,000 1. Current assets 2. Shareholders' equity 3. Long-term assets 4. Long-term liabilities 2.50 1.50 1.5 Required: Determine the following balance sheet items:
N1. Account Calculate the following ratios for Lake of Egypt Marina, Inc. as of year-end 2021. (Use sales when computing the inventory turnover and use total stockholders' equity when computing the equity multiplier. Round your answers to 2 decimal places. Use 365 days a year.)
Required: Compute the following ratios for 2020: 1. Current Ratio 2. Quick Ratio 3. Receivable Turnover 4. Average Collection Period 5. Inventory Turnover 6. Average Sales Period 7. Working Capital 8. Debt Ratio 9. Equity Ratio 10. Debt to Equity Ratio 11. Time Interest Earned 12. Gross Profit Ratio 13. Operating Profit Margin 14. Net Profit Margin 15. Return on Assets
Which of the following ratios is used to analyze a company's liquidity? a. Inventory turnover ratio b. Earnings per share c. Return on assets ratio d. Asset turnover ratio
Please Complete the Following: 1. Complete a vertical and horizontal analysis on the tabs labeled "Balance Sheet" and "Income Statement", use total assets on the balance sheet and net sales on the income statement for your vertical analysis. 2. Using the balance sheet and income statement, complete the ratios on the tab labeled "Ratios" 3. Answer the final OBSERVATION QUESTION (listed under Ratios calculations) Consolidated Balance Sheets (USD $) 12/31/2020 Vertical Analysis 12/31/2019 Vertical Analysis Horizontal Analysis In Millions, unless otherwise specified Current Assets: Cash and Cash Equivalents $1,723 $1,929 Receivables, net 1,484 1,398 Merchandise Inventories 11,079 11,057 Other Current Assets 1,016 895 Total Current Assets 15,302 15,279 Property and Equipment, at…