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Compute the following ratios for the most recent two years, show all values in the computations: 1.Current ratio 2.Accounts receivable turnover 3.Debt ratio(TotalLiabilities/Total Assets, as a percentage) 4.Debt-to-equity ratio Based on the results above, what conclusions can you make about the liquidity and solvency of the company?

Compute the following ratios for the most recent two years, show all values in the computations: 1.Current ratio 2.Accounts receivable turnover 3.Debt ratio(TotalLiabilities/Total Assets, as a percentage) 4.Debt-to-equity ratio Based on the results above, what conclusions can you make about the liquidity and solvency of the company?

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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Compute the following ratios for the most recent two years, show all values in the computations:
1.Current ratio
2.Accounts receivable turnover
3.Debt ratio(TotalLiabilities/Total Assets, as a percentage)
4.Debt-to-equity ratio
Based on the results above,
what conclusions can you make about the liquidity and solvency of the
company?
December 31, 2019 2018 Assets Current assets: Cash and cash equivalents 19,079 10,019 Marketable securities 35,776 31,095 Accounts receivable, net of allowances of $206 and $229 as of December 31, 2019 and December 31, 2018, respectively 9,518 7,587 Prepaid expenses and other current assets 1,852 1,779 Total current assets 66,225 50,480 Property and equipment, net 35,323 24,683 Operating lease right-of-use assets, net 9,460 Intangible assets, net 894 1,294 Goodwill 18,715 18.301 Other assets 2,759 2,576 Total assets 133.376 97.334 Liabilities and stockholders' equity Current liabilities: Accounts payable 1,363 820 Partners payable 86 541 Operating lease liabilities, current 800 Accrued expenses and other current liabilities 11,735 5,509 Deferred revenue and deposits 269 147 Total current liabilities 15,053 7,017 Operating lease liabilities, non-current 9,524 Other liabilities 7,745 6,190 Total liabilities 32,322 13,207
Transcribed Image Text:December 31, 2019 2018 Assets Current assets: Cash and cash equivalents 19,079 10,019 Marketable securities 35,776 31,095 Accounts receivable, net of allowances of $206 and $229 as of December 31, 2019 and December 31, 2018, respectively 9,518 7,587 Prepaid expenses and other current assets 1,852 1,779 Total current assets 66,225 50,480 Property and equipment, net 35,323 24,683 Operating lease right-of-use assets, net 9,460 Intangible assets, net 894 1,294 Goodwill 18,715 18.301 Other assets 2,759 2,576 Total assets 133.376 97.334 Liabilities and stockholders' equity Current liabilities: Accounts payable 1,363 820 Partners payable 86 541 Operating lease liabilities, current 800 Accrued expenses and other current liabilities 11,735 5,509 Deferred revenue and deposits 269 147 Total current liabilities 15,053 7,017 Operating lease liabilities, non-current 9,524 Other liabilities 7,745 6,190 Total liabilities 32,322 13,207
Stockholders' equity: Common stock, S0.000006 par value; 5,000 million Class A shares authorized, 2,407 million and 2,385 million shares issued and outstanding, as of December 31, 2019 and December 31, 2018, respectively; 4,141 million Class B shares authorized, 445 million and 469 million shares issued and outstanding, as of December 31, 2019 and December 31, 2018, respectively. Additional paid-in capital 42.906 45.851 Accumulated other comprehensive loss (489 (760 Retained earnings 55.692 41.981 Total stockholders' equity 101.054 84.127 Total liabilities and stockholders' equity 133,376 97.334
Transcribed Image Text:Stockholders' equity: Common stock, S0.000006 par value; 5,000 million Class A shares authorized, 2,407 million and 2,385 million shares issued and outstanding, as of December 31, 2019 and December 31, 2018, respectively; 4,141 million Class B shares authorized, 445 million and 469 million shares issued and outstanding, as of December 31, 2019 and December 31, 2018, respectively. Additional paid-in capital 42.906 45.851 Accumulated other comprehensive loss (489 (760 Retained earnings 55.692 41.981 Total stockholders' equity 101.054 84.127 Total liabilities and stockholders' equity 133,376 97.334
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