2) Ratios Based on the information given in picture #1, complete the following ratios for the last TWO years and indicate whether the trend is favorable or unfavorable. Note percentages and times should be to one decimal place (e.g. 14.8%; 5.8x)Liq./Solv. Ratios Current Yr. Prior Yr. Fav/Unfav.Current Ratio (X) {Total. Current Assets/Total Current Liabilities} Quick Ratio (X){Cash + Short term Investments +Current Receivables/ Current Liabilities} Day's Sales Uncollected (days){Total Accounts Receivables / Sales x 365} FAVORABLECurrent YearPrior Year(UNFAVORABLE)Liquidity/Solvency Ratios(G) Current Ratio (X){Total Current Assets /Total Current Liabilities}(G) Quick Ratio (X){Cash + Short Term Investments +Current Receivables /Current Liabilities}(C) Days' Sales Uncollected (days){Total Accounts Receivables / Sales X 365} 1- Key Statistices: (OMIT ALL ZEROS 000); if none, leave blankIncome Statement(2020)Current Year406,785(201G)Prior YearIncrease(Decrease)Sales/Revenue297,897T 108, 888+ 75,69897,285 + 33,190(12,443) (40,30 a) 3247.37/-387.347276,310200, 612Cost of Goods Sold130,475(s2,752)Gross IncomeNet IncomeBalance SheetEnd ofCurrent YearEnd ofIncrease (Decrease)Prior Year275,988 (116, 061) -42%.40, 080 (410s)-10%.40,121 491.Cash & Short-term investments|59,127Total Accounts Reccivable35,975veatories12, 귀구81,596332, 226Net Property, Plant & Equipment 129,869403, 594 (74,366) -18/.47/47 니 +82,39S 1747.Total Current AssetsIntangible Assets4 SI, 923 +i br077 4%26,923 + 2611484구,697 +41, 2구 067,833 +3 3,076 497384,090 (14,993) -47.Total Assets46४,००6977.Accounts Payable53,071877.88,967Total Current LiabilitiesTotal Linbilities100,90aTotal Shareholders' Equity36구,097Asset Compoition:End of Current Year% of Total AssetsLargest Assets: (from above)Net property ,Plant1. tequipmeAAAcasn + Snort term2.iA Amen129869I54,127-42%.491.3. Innentoriey12/,717

Ratio analysis is a method of analyzing the financial results of an organization by calculating…

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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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2) Ratios

Based on the information given in picture #1, complete the following ratios for the last TWO years and indicate whether the trend is favorable or unfavorable. Note percentages and times should be to one decimal place (e.g. 14.8%; 5.8x)

Liq./Solv. Ratios Current Yr. Prior Yr. Fav/Unfav.

Current Ratio (X)

{Total. Current Assets/

Total Current Liabilities}

Quick Ratio (X)

{Cash + Short term Investments +

Current Receivables/ Current Liabilities}

Day's Sales Uncollected (days)

{Total Accounts Receivables / Sales x 365}

FAVORABLE
Current Year
Prior Year
(UNFAVORABLE)
Liquidity/Solvency Ratios
(G) Current Ratio (X)
{Total Current Assets /
Total Current Liabilities}
(G) Quick Ratio (X)
{Cash + Short Term Investments +
Current Receivables /Current Liabilities}
(C) Days' Sales Uncollected (days)
{Total Accounts Receivables / Sales X 365}

1- Key Statistices: (OMIT ALL ZEROS 000); if none, leave blank
Income Statement
(2020)
Current Year
406,785
(201G)
Prior Year
Increase(Decrease)
Sales/Revenue
297,897
T 108, 888
+ 75,698
97,285 + 33,190
(12,443) (40,30 a) 3247.
37/-
387.
347
276,310
200, 612
Cost of Goods Sold
130,475
(s2,752)
Gross Income
Net Income
Balance Sheet
End of
Current Year
End of
Increase (Decrease)
Prior Year
275,988 (116, 061) -42%.
40, 080 (410s)-10%.
40,121 491.
Cash & Short-term investments
|59,127
Total Accounts Reccivable
35,975
veatories
12, 귀구
81,596
332, 226
Net Property, Plant & Equipment 129,869
403, 594 (74,366) -18/.
47/47 니 +82,39S 1747.
Total Current Assets
Intangible Assets
4 SI, 923 +i br077 4%
26,923 + 261148
4구,697 +41, 2구 0
67,833 +3 3,076 497
384,090 (14,993) -47.
Total Assets
46४,००6
977.
Accounts Payable
53,071
877.
88,967
Total Current Liabilities
Total Linbilities
100,90a
Total Shareholders' Equity
36구,097
Asset Compoition:
End of Current Year
% of Total Assets
Largest Assets: (from above)
Net property ,Plant
1. tequipmeAAA
casn + Snort term
2.iA Amen
129869
I54,127
-42%.
491.
3. Innentoriey
12/,717

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