Required:a. From the information above calculate for 31 December 20X1 the followingratios:i. Debt to Equity ratioii.Earnings per shareReturn on total assetsReturn on capital employedAcid test ratio.iii.iv.V.vi.vii.b. Analyse the firm's performance using the industry norms/averagesoutlined above. The analysis should be based on:i. Profitabilityii.iii.Question 2Current ratioTimes interest earned ratioi.ii.iii.Liquidity andDebt ManagementThe following are some terms used in financial managementTime value of moneyAgency TheoryWorking capital managementRequireda) Briefly explain each term outlined aboveb) Differentiate between a risky asset and a risk free asset.c) Briefly explain three limitations of ratio analysis.End of Projectwork within a group of 5 persons53ده ست AQuestion 1A condensed balance sheet and other financial data for the Nike Company areprovided below.Nike Company Balance Sheet as at December 31, 20X1ASSETSCurrent assetsPlant assetsTotal assetsLIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilitiesLong-term liabilities.Total liabilitiesCommon Stock $1 par valueRetained Earnings.Total liabilities and stockholders' equityNet salesInterest expenseNet incomeNB: Inventory at 31 December 20X1 is $30 000Income statement data for the year ended 31 December 20X1 are recorded below:$375,0006,00030,500Current RatioTimes interest earned$110,000140,000$250,0006.5%36%0.85:1102:14 times$100,00065,000$165,000Additional information as at 31 December 20X0 is shown below:Total assetsStockholders' equityThe tax rate is 30 percent.Industry norms/averages for the same ratios as of December 31, 20X1, are:Debt to equity ratio10 ono11 75Earnings per share$0,26Return on total assetsReturn on stockholders' equityAcid test ratioalisieren70,00015,000$250,000$200,000$65,000L

Debt to equity ratio is the ratio which shows the quantum of debt used in the business in comparison…

Answered: A condensed balance sheet and other…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Required information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity For Year Ended December 31 Sales Cost of goods sold Other operating expenses Current Year 1 Year Ago $ 31,099 $ 26,605 89, 200 114,500 62,900 85,000 8,568 221, 258 8,163 209,503 $ 460, 131 $ 396,665 Interest expense Income tax expense Total costs and expenses Net income Earnings per share $ 112,281 84,775 162,500 100,575 $ 460,131 $ 396,665 $ 65,696 89,408 162,500 79, 061 Current Year The company's income statements for the current year and one year ago follow. Assume that all sales are on credit: $364,884 185,433 10, 169 7,776 $598,170 2 Years Ago 568, 262 $ 29,908 $ 1.84 $ 32,725 50,800…
Return on Total Assets A company reports the following income statement and balance sheet information for the current year: Net income $661,910Interest expense 116,810Average total assets 6,280,000Determine the return on total assets. If required, round the answer to one decimal place.fill in the blank 1 %
Net sales Cost of goods sold Selling and administrative expenses Interest expense Other income (expense) Income tax expense Net income Current assets Noncurrent assets Total assets Current liabilities Long-term debt Total stockholders' equity Total liabilities and stockholders' equity Total assets Total stockholders' equity Current liabilities Target Corporation Income Statement Data for Year $65,357 45,583 15,101 707 (94) 1,384 $ 2,488 $18,424 26,109 Balance Sheet Data (End of Year) $44,533 $11,327 17,859 15,347 Walmart Inc. $44,533 $408,214 304,657 79,607 10,512 2,065 (411) 7,139 $ 14,335 $48,331 122,375 $170,706 $55,561 44,089 71,056 $170,706 Beginning-of-Year Balances $44,106 13,712 $163,429 65,682 55,390
Some recent financial statements for Smolira Golf Corporation follow. Assets Current assets Cash Accounts receivable Inventory Total Fixed assets Net plant and equipment Total assets Sales Cost of goods sold Depreciation Taxable income Taxes (22%) Earnings before interest and taxes Interest paid Net income Dividends Retained earnings 2020 $35,585 $38,940 28,846 43,112 18,401 3,970 SMOLIRA GOLF CORPORATION 2021 Income Statement a. Price-earnings ratio b. Dividends per share c. Market-to-book ratio d. PEG ratio SMOLIRA GOLF CORPORATION 2020 and 2021 Balance Sheets 2021 Liabilities and Owners' Equity Current liabilities $57,956 $110,898 $ 465,585 $ 27,000 37,022 Accounts payable Notes payable Other $ 521,433 Total $ 523,541 $ 632,331 Total liabilities and owners' equity Long-term debt times Owners' equity Common stock and paid-in surplus Accumulated retained earnings times times Total $ 512,454 363,528 45,963 $102,963 20,883 $ 82,080 18,058 $ 64,022 Smolira Golf Corporation has 52,000…
Return on total assets A company reports the following income statement and balance sheet information for the current year: Net income $266,220 Interest expense 46,980 Average total assets 4,350,000 Determine the return on total assets. If required, round the percentage to one decimal place. %
Create a comparative financial statement from the following:
At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity For Year Ended December 31 Sales Cost of goods sold Other operating expenses Current Year Interest expense Income tax expense Total costs and expenses Net income Earnings per share $ 31,880 88,776 116, 174 9,763 283, 158 $ 529,751 $ 127,951 100,589 162,500 138,711 $529,751 For both the current year and one year ago, compute the following ratios: $ 420,092 213,490 11,707 8,953 Current Year 1 Year Ago The company's income statements for the current year and one year ago follow. Assume that all sales are on credit: $ 688,676 $36,900 63,296 86,176 9,686 260,624 $ 456,682 654,242 $34,434 $ 2.12 2 Years Ago $36,930 50,235 $ 75,636 105, 037 163,500 $ 49,240 81,607 162,500 83,453 112,509 $ 456,682 $ 376,800 54, 576 4,186 230,873 $…
Fortune Corporation's comparative balance sheet showed noncash current assets and liabilities as follows: Dec. 31, Year 2 Dec. 31, Year 1 $7,639 $4,034 11,762 16,277 4,443 5,510 4,585 2,265 Accounts receivable Merchandise inventory Accounts payable Dividends payable Adjust Year 2 net income of $48,103 for changes in current operating assets and liabilities to arrive at net cash flows from operating activities using the indirect method.

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS