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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On December 31. Sulfur Corporation has the following data available: Net Income $140,000 Interest expense 20,000 Total assets at the beginning of the year 720,000 Toital assets at the end of the year 810,000 Total common stockholders' equity at the beginning of the year 440,000 Total common stockholders' equity at the end of the year 300,000 What is return on equity? A. 32.43% B. 27.03% C. 37.84% D. 15.69%
The following information is available for Jase Company: Market price per share of common stock $25.00 Earnings per share on common stock 1.25 Which of the following statements is correct? a. The price-earnings ratio is 10 and a share of common stock was selling for 125 times the amount of earnings per share at the end of the year. b. The market price per share and the earnings per share are not statistically related to each other. c. The price-earnings ratio is 20 and a share of common stock was selling for 20 times the amount of earnings per share at the end of the year. d. The price-earnings ratio is 5% and a share of common stock was selling for 5% more than the amount of earnings per share at the end of the year.
The financial statements of Colorado Outfitters include the following selected data ($ in millions): sales, $9,543; net income, $320; beginning stockholders’ equity, $3,219; and ending stockholders’ equity, $2,374. Calculate the return on equity.
The following financial data (in thousands) were taken from recent financial statements of Staples, Inc.: Please see the attachment for details: 1. Determine the times interest earned ratio for Staples in Year 3, Year 2, and Year 1? Round your answers to one decimal place.2. Evaluate this ratio for Staples.
A summary of selected transactions in ledger accounts appears below for Alberto’s Plumbing Services for the current calendar year-end. Common Stock 1/1 6,870 Retained Earnings 12/31 7,608 12/31 21,781 Dividends 3/30 2,402 12/31 7,608 9/30 5,206 Net income for the period is
A company's financial statements include the following selected data ($ 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: _________%
Ratio of Liabilities to Stockholders' Equity and Times Interest Earned The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years: Current Year Prior Year Accounts payable $618,000 $300,000 Current maturities of serial bonds payable 550,000 550,000 Serial bonds payable, 10% 2,480,000 3,030,000 Common stock, $1 par value 90,000 120,000 Paid-in capital in excess of par 1,000,000 1,010,000 Retained earnings 3,470,000 2,750,000 The income before income tax expense was $757,500 and $662,800 for the current and prior years, respectively. a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round to one decimal place. Current year fill in the blank 1 Prior year fill in the blank 2 b. Determine the times interest earned ratio for both years. Round to one decimal place. Current year fill in the blank 3 Prior year fill in the blank 4 c. The ratio of liabilities to stockholders' equity have improved and the…
Calculate: a). The average stock return from 20x1-20x3. b). the standard deviation over the same period. c). the coefficient of variation over the same period. Comparative Balance Sheets As of December 31 Assets: 20X3 20X2 20X1 Cash $ 210,000 $ 780,000 $ 1,530,000 Accounts Receivable 315,000 265,000 240,000 Inventory 436,000 405,000 330,000 Prepaid Insurance 15,000 18,000 21,000 Total Current Assets $ 976,000 $ 1,468,000 $ 2,121,000 Land 1,650,000 1,630,000 1,400,000 Buildings 2,300,000 1,760,000 1,400,000 Less: Accumulated Depreciation (560,000) (490,000) (440,000) Net Buildings 1,740,000 1,270,000 960,000 Total Long-Term Assets 3,390,000 2,900,000 2,360,000 Total Assets 4,366,000 4,368,000 4,481,000 Liabilities & Stockholder's Equity Accounts Payable 215,000 134,000 185,000 Salaries and Wages Payable 63,000…
Nabors Company reported the following current assets and liabilities for December 31 for two recent years: Dec. 31, Current Year Dec. 31, Previous Year $ 680 Cash 650 1,500 1,550 Temporary investments Accounts receivable 700 770 1,400 Inventory 1,250 Accounts payable 2,375 2,000 a. Compute the quick ratio on December 31 of both years. b. Interpret the company's quick ratio. Is the quick ratio improving or declining?
Motorola Credit Corporation's annual report (dollars in millions) 3311 Net revenue (sales) Net earnings 170 Total assets 2,245 Total liabilities 1,929 Total stockholders' equity 316 a. Find the total debt to total assets ratio. (Round your answer to the nearest hundredth percent.) Total debt to total assets b. Find the return on equity ratio. (Round your answer to the nearest hundredth percent.) Return on equity c. Find the asset turnover ratio. (Round your answer to the nearest cent.) Asset turnover d. Find the profit margin ratio on net sales. (Round your answer to the nearest hundredth percent.) Profit margin
Example 5: A firm sold goods worth 75,00,000 and its gross profit is 20 per cent of sales value. The stock at h beginning of the year was 16,000 and at end of the year was 14,000. Compute stock turnover ratio and also stock conversion period.
Subject: accounting

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