Current ratios Working capital A/R turnover Inventory Turnover Asset turnover Total debt to total assets Glow Corporation 2022 1.16 $11 31.7 times 16.6 times 2.4 times 86.9% 13.1% 30% 10% 24.5% 2023 .95 ($2) 45 times 22.5 times 3.2 times 81.7% 18.3% 33% 11.9% Blue Corporation 2022 2.25 $30 30 times 15 times 3.6 times 38.5% 14.2% 85.8% 25% 10% 35.5% 41.4$ 2023 2.17 $28 30 times 15 times 3.8 times 15.4% 84.6% 25% Sh. Equity to total assets Gross margin ratio Return on sales Return on assets Return on equity 186.3% 210.5% Required: Conduct financial analyses of the two companies on the basis of above data and deduct which is performing better and why? ( 10% 38.5% 45.5%

Current ratios Working capital A/R turnover Inventory Turnover Asset turnover Total debt to total assets Glow Corporation 2022 1.16 $11 31.7 times 16.6 times 2.4 times 86.9% 13.1% 30% 10% 24.5% 2023 .95 ($2) 45 times 22.5 times 3.2 times 81.7% 18.3% 33% 11.9% Blue Corporation 2022 2.25 $30 30 times 15 times 3.6 times 38.5% 14.2% 85.8% 25% 10% 35.5% 41.4$ 2023 2.17 $28 30 times 15 times 3.8 times 15.4% 84.6% 25% Sh. Equity to total assets Gross margin ratio Return on sales Return on assets Return on equity 186.3% 210.5% Required: Conduct financial analyses of the two companies on the basis of above data and deduct which is performing better and why? ( 10% 38.5% 45.5%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

calculate: Debt ratio Interest coverage ratio Dividend yield current asset- 1.170.7 million inventory- 859.9 million currant liability- 885.8 million total dedt- 1.598.8 million total assets- 2.452.3 million operating profit- 1.230.5 million interest expense- 10,700 thousand
RNOA + FLEV X Spread X NCI Ratio = ROE 25.89% +FLEV X 24.37% X 1.0026 =50% What is FLEV? Please show steps
Question 6 (this question has 2 parts) Gordon Industries Ltd has provided you with the following information: 2019 2020 2021 Debt to Equity 10.5% 23.4% 36.2% Gross Profit margin 30.2% 36.5% 35.3% Net profit margin 19.5% 17.6% 13% Return on Equity 15.1% 17.5% 16.2% Asset Turnover (times) 0.71 0.82 1.41 Return on Assets 13.8% 14.4% 18.3% Interest coverage ratio 4 times 3 times 2.5 times a) Advise Gordon Industries of the relationship between Return on Assets, Asset Turnover and Net Profit Margin. Comment on the profitability position of Gordon and any advice you consider relevant. b) Advise the shareholders of Gordon Industries on the financial structure of the company.
Sales Depreciation COGS Interest Cash Accts Receivables Notes Payable L ong-term debt Net fixed assets Accounts Payable Inventory Dividend payout Tax rate 2020 21. What is the ROE for 2021? $5,300 $5,900 750 850 2400 180 200 200 800 1500 3000 250 700 2021 2900 196 500 22. What is the Inventory period in 2021? 400 550 1950 3500 400 900 30% 35% 30% 20. What is the cash flow from operating activities?
EAST COAST YACHTS 2020 Income Statement Sales Cost of goods sold Selling, general, and administrative Depreciation EBIT Interest expense EBT Taxes (25%) Net income Dividends Retained earnings $550,424,000 397,185,000 65,778,000 17,963,000 $ 69,498,000 9,900,000 $ 59,598,000 14,899,500 $ 44,698,500 $ 19,374,500 25,324,000 Current assets Cash and equivalents Accounts receivable Inventory Other Total current assets Fixed assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Intangible assets and others Total fixed assets Total assets EAST COAST YACHTS 2020 Balance Sheet $ 10,107,000 16,813,300 18,135,700 1,054,900 $ 46,110,900 $412,032,000 (102,452,000) $309,580,000 6,772,000 $316,352,000 $362,462,900 Current liabilities Accounts payable Accrued expenses Total current liabilities Long-term debt Total long-term liabilities Stockholders' equity Preferred stock Common stock Capital surplus Accumulated retained earnings Less treasury stock…
2021 2020 2019 2018 2017 Current Ratio 0.95 times 1.3 times 1.1 times 1.2 times 1.3 times Days in Accounts Receivable 50 days 45 days 40 days 35 days 30 days Days in Inventory 38 days 28 days 21 days 23 days 25 days Return on Equity 20% 15% 20% 19% 18% Debt to Total Assets 55% 45% 37% 35% 35% Profit $300,000 $250,000 $270,000 $240,000 $220,000 Discuss the trend in Profitability.
Based on the forecast how much additional financing is needed?