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FINANCIAL ACCOUNTING

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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Pepsico, Inc., the parent company of Frito-Lay snack foods and Pepsi beverages, had the following current assets and current
liabilities at the end of two recent years:
Current Year
Previous Year
(in millions)
(in millions)
Cash and cash equivalents
$8,721
$10,610
Short-term investments, at cost
272
8,900
Accounts and notes receivable, net
7,142
7,024
Inventories
3,128
2,947
Prepaid expenses and other current assets
2,630
1,546
Accounts payable
18,112
15,017
Other short-term liabilities
4,026
5,485
a. Determine the (1) current ratio and (2) quick ratio for both years. Round answers to one decimal place.
Current Year
Previous Year
1. Current ratio
2. Quick ratio

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Accounting Question
Indicate the effect of the transactions listed in the following table on total current assets, current ration, and net income. Use (+) to indicate an increase, (-) to indicate a decrease, and (0) to indicate either no effect or an indeterminate effect. Be prepared to state any necessary assumptions and assume an initial current ratio of more than 1.0. Federal income tax due for the previous year is paid.
Count the average of these weights for all three years. Please note that you are to assign weights of 3, 2 and 1 to the financial ratios for FISCAL YEAR 2019, FISCAL YEAR 2018 and FISCAL YEAR 2017 and then compute the weighted average. Current Ratlo Particulars FY'19 L&T BHEL NBCC 1.3 1.59 1.08 Slemens 191 FY'18 FY'17 132 1.44 1.83 1.96 1.18 1.26 1.82 ▷
Hello, could you explain to me what is a decimal place when calculating financial ratios. thank you.
Required: 1. Express all of the asset, liability, and sales data in trend percentages. Use Year 1 as the base year. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) Sales Current assets: Cash Accounts receivable, net Inventory Total current assets Current liabilities Year 1 % % % % % % Year 2 % % % % % % Year 3 % % % % % % Year 4 % % % % % Year 5 % % % % %
compute the following ratios using the Balance Sheet (Current Year) and Income Statement provided in the images below Current Ratio (in numeric format, 2 decimal places): Debt to Equity (in numeric format, 2 decimal places(): Return on Equity (stated as a percentage, 2 decimal places): Return on Assets (stated as a percentage, 2 decimal places):
Problem 17-2A (Algo) Ratios, common-size statements, and trend percer [The following information applies to the questions displayed below.] Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements For Years Ended December 31 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income Assets Current assets Long-term investments Plant assets, net Total assets Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings Total liabilities and equity 2021 $546,242 328,838 217,404 77,566 49,162 126,728 90,676 16,866 $ 73,810 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income KORBIN COMPANY Comparative Balance Sheets December 31 2020 $ 418,466 263,634 2021 % 154,832 57,748 36,825 94,573 60, 259 12,353 $ 47,906 % $61,141 0 113,547…
Hello! look at the attached images and answer: (a) Calculate ratios for the year ended 31 December 2021 (showing your workings) for Primrose Plc, equivalent to those provided above. i. Return on year-end capital employed ii. Net asset turnover iii. Gross profit margin iv. Net profit margin v. Current ratio vi. Closing inventory holding period vii. Trade receivables’ collection period viii. Trade payables’ payment period ix. Dividend yield x. Dividend cover (b) Analyse the financial performance and position of Primrose Plc for the year ended 31 December 2021 compared to 31 December 2020. (c) Explain the uses and the general limitations of ratio analysis. Thanks a lot!
8. Using the following Balance Sheet summary information, for the two years presented calculate: A. working capital B. current ratio 12/31/2018 12/31/2019 Current assets $101,600 33,650 $97,350 32,800 Current liabilities

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