A restaurant has the following information statistical information calculated from its tinancial statements for the past three years. Year 1 Year 2 Year 3 Curent Ratio 1.01:1 125:1 1.40:1 Accornts Receivable Tunover 18 times 24 times 31 titmes Food inventory Tumover Ratio 37 times 28 times 22 times Total Liabilities to Total Equity 2.75:1 24:1 1.95:1 Return on Stockholders' Equity 9.72% 9.51% 8.74% Annual Revenue P875,400 P881,900 P879,300 Using this information, answer cach of the following questions and explain your answer. A simple yes, no, more, less, or maybe wan't do! 1.) Are current assets in relation to curent liabilities increasing or decreasing? 2.) Is the restaurant becoming more or less eflicient in the ocollection of its accouunts receivable? 3.) Over lhe thuee year period, has noe or less money beern lied up in food inverlory? 4.) With the stockholders' viewpoint in mind, is the profitability improving or not improving? 5.) If the restaurant needed to borrow capital through long-term debt, would it be easier to find a lender tww than tduee yeaas ago?

A restaurant has the following information statistical information calculated from its tinancial statements for the past three years. Year 1 Year 2 Year 3 Curent Ratio 1.01:1 125:1 1.40:1 Accornts Receivable Tunover 18 times 24 times 31 titmes Food inventory Tumover Ratio 37 times 28 times 22 times Total Liabilities to Total Equity 2.75:1 24:1 1.95:1 Return on Stockholders' Equity 9.72% 9.51% 8.74% Annual Revenue P875,400 P881,900 P879,300 Using this information, answer cach of the following questions and explain your answer. A simple yes, no, more, less, or maybe wan't do! 1.) Are current assets in relation to curent liabilities increasing or decreasing? 2.) Is the restaurant becoming more or less eflicient in the ocollection of its accouunts receivable? 3.) Over lhe thuee year period, has noe or less money beern lied up in food inverlory? 4.) With the stockholders' viewpoint in mind, is the profitability improving or not improving? 5.) If the restaurant needed to borrow capital through long-term debt, would it be easier to find a lender tww than tduee yeaas ago?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Current Position Analysis The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Current Year Previous Year Current assets: Cash $395,200 $324,000 Marketable securities 457,600 364,500 Accounts and notes receivable (net) 187,200 121,500 Inventories 617,800 411,800 Prepaid expenses 318,200 263,200 Total current assets $1,976,000 $1,485,000 Current liabilities: Accounts and notes payable (short-term) $301,600 $315,000 Accrued liabilities 218,400 135,000 Total current liabilities $520,000 $450,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. Current Year Previous Year 1. Working capital %24 2. Current ratio 3. Quick ratio
The financial statements for Castile Products, Incorporated, are given below: Castile Products, Incorporated Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses Total current assets Property and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 10% Total liabilities. Stockholders equity Connon stock, $5 per value. Retained earnings Total stockholders equity Total liabilities and stockholders' equity Castile Products, Incorporated Income Statement For the Year Ended December 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net incone before taxes Income taxes (30%) Net income $24,000 230,000 370,000 9,000 633,000 860,000 $1,493,000 $ 290,000 320,000 610,000 $150,000. 733,000 883,000 $1,493,000 $ 2,290,000 1,220,000 1,070,000 580,000 490,000 32,000 458,000 137,400 $ 320,600
Current Position Analysis The following items are reported on a company's balance sheet: Cash $537,500 Marketable securities 419,900 Accounts receivable (net) 334,600 Inventory 387,600 Accounts payable 646,000 Determine (a) the current ratio and (b) the quick ratio. Round your answers to one decimal place. a. Current ratio fill in the blank 1 b. Quick ratio
provide both answer please
The comparative accounts payable and long-term debt balances for a company follow. Current Year Previous Year Accounts payable $47,481 $39,900 Long-term debt 44,650 47,000 Based on this information, what is the amount and percentage of increase or decrease that would be shown on a balance sheet with horizontal analysis? Enter all answers as positive numbers. Amount of Change Increase/Decrease Percentage Accounts payable $fill in the blank 1 IncreaseDecrease fill in the blank 3 % Long-term debt $fill in the blank 4 IncreaseDecrease fill in the blank 6 %
Cunent POsition Analysis The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Current Year Previous Year Current assets: Cash $426,400 $319,200 Marketable securities 493,700 359,100 Accounts and notes receivable (net) 201,900 119,700 Inventories 958,300 695,400 Prepaid expenses 493,700 444,600 Total current assets $2,574,000 $1,938,000 Current liabilities: Accounts and notes payable (short-term) $382,800 $399,000 Accrued liabilities 277,200 171,000 Total current liabilities $660,000 $570,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.
The financial statements of Colorado Outfitters include the following selected data ($ in millions): sales, $9,543; net income, $320; beginning stockholders’ equity, $3,219; and ending stockholders’ equity, $2,374. Calculate the return on equity.
Rakesh
A summary of selected transactions in ledger accounts appears below for Alberto’s Plumbing Services for the current calendar year-end. Common Stock 1/1 6,870 Retained Earnings 12/31 7,608 12/31 21,781 Dividends 3/30 2,402 12/31 7,608 9/30 5,206 Net income for the period is
A company's year-end selected financial data is shown below. Year 2 Year 1 Current assets $250,000 $175,000 Total assets 600,000 500,000 Total liabilities 300,000 225,000 Net sales 200,000 150,000 Net income 75,000 60,000 The company's rate of return on assets and rate of return on equity for Year 2 are: a. 12% and 22%, respectively. Ob. 13% and 25%, respectively. Oc. 14% and 26%, respectively. Od. 36% and 25%, respectively.
A company's financial statements include the following selected data ($ in millions): Sales, $22,600; Net income, $900; Beginning stockholders' equity, $3,540; Ending stockholders' equity, $4,200.Calculate the return on equity. (Round your answer to 1 decimal place.) Return on equity: _________%
< The following items are reported on a company's balance sheet: $296,600 Marketable securities 185,000 Accounts receivable (net) 121,000 Inventory 127,000 Accounts payable 228,000 Determine (a) the current ratio and (b) the quick ratio. Round your answers to one decimal place. Cash a. Current ratio b. Quick ratio

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