Financial Ratios for 2018 Current Ratio Quick ratio Recelvable Turnover Inventory Turnover Debt Ratio P&P Mfg. Co. 9.31:1 6.9:1 18.9 times 7.8 times 0.15:1 0.17:1 3.4 times 49.4% Competitor B 6:1 4.25:1 20 times 8.6 times 0.2:1 1.75:1 Competitor C 4.5:1 3.625:1 7 times 5.3 times 0.075:1 Debt-equity Ratio Times Interest Earned Ratio Gross Profit Margin Ratio 0.825:1 2.6 times 38.5% 4.5 times 51.2%

Financial Ratios for 2018 Current Ratio Quick ratio Recelvable Turnover Inventory Turnover Debt Ratio P&P Mfg. Co. 9.31:1 6.9:1 18.9 times 7.8 times 0.15:1 0.17:1 3.4 times 49.4% Competitor B 6:1 4.25:1 20 times 8.6 times 0.2:1 1.75:1 Competitor C 4.5:1 3.625:1 7 times 5.3 times 0.075:1 Debt-equity Ratio Times Interest Earned Ratio Gross Profit Margin Ratio 0.825:1 2.6 times 38.5% 4.5 times 51.2%

Name: Give a comment on the financial health and performance of the company
Uploaded: 2022-11-18T00:26:54.000Z
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Description: Give a comment on the financial health and performance of the company (as benchmarked with competitors) using the following liquidity ratios: current ratiorecievable turnoverinventory turnoverquick ratio Competitor C4.5:13.625:17 times5.3 times0.075:

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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a. Efficiency ratios. b. Asset turnover ratios. c. Leverage ratios. d. Coverage ratios. Efficiency Ratios Inventory turnover ratio enter Inventory turnover ratio in times times Days sales in inventory enter Days sales in inventory days Accounts receivables turnover enter Accounts receivables turnover in times times DSO enter days sales outstanding days Asset Turnover Ratios Total asset turnover enter Total asset turnover in times times Fixed assets turnover enter Fixed assets turnover in times times Leverage Ratios Total debt ratio enter Total debt ratio in times times Debt to equity ratio enter Debt to equity ratio in times times Equity multiplier enter Equity multiplier in times times Coverage Ratios Times interest earned enter Times interest earned times Cash coverage enter Cash coverage in times times
Directions: Read each sentence carefully and detemine whether the statement is TRUE or FALSE. Write your answers onthe space provided before each number. 1. Profitability ratios measure the ability of the company's assets and invested capital to generate sales. 2. Čunent ratio is generally higher than quick ratio. 3. Using anothercompany as benchmark, the company with highernet profitmarginis more profitable. 4. Accounts receivable turnover measures the number of days in the company's average collections period. 5. Firancial statement analysis uses computational and analytical techniques to evaluate the company's risks, performance, financial health, and future prospects with the objective of making economic decisions. - 6. Given equal gross profit margin, the company with the better operating income margin has higher operating expenses as a percentage of sales. 7. Debt to equity ratio measures the percentage of assets financed by equity. 8. Gross profit margin provide an indication of…
(Ratio Computations and Effect of Transactions) Presented below is information related to Carver Inc. Check the image below for information. Instructions(a) Compute the following ratios or relationships of Carver Inc. Assume that the ending account balances are representative unless the information provided indicates differently.(1) Current ratio.(2) Inventory turnover.(3) Accounts receivable turnover.(4) Earnings per share.(5) Profit margin on sales.(6) Return on assets on December 31, 2017.(b) Indicate for each of the following transactions whether the transaction would improve, weaken, or have no effect on the current ratio of Carver Inc. at December 31, 2017.(1) Write off an uncollectible account receivable, $2,200.(2) Purchase additional capital stock for cash.(3) Pay $40,000 on notes payable (short-term).(4) Collect $23,000 on accounts receivable.(5) Buy equipment on account.(6) Give an existing creditor a short-term note in settlement of account.
Sargassum Caribbean Incorporated Balance Sheet as at December 31, 2020 Assets Liabilities Current Assets: Current Liabilities: Cash Accounts Payable 600,000 300,000 200,000 400,000 Notes Payable 900,000 1,500,000 Total Current Liabilities Accounts Receivable Inventory Total Current Assets 900,000 Fixed Assets: Long-Term Liabilities: Property, Plant & Equipment Less: Accumulated Depreciation 1,200,000 Long-Term Debt 1,000,000 Total Long Term Liabilities 200,000 300,000 300,000 Net Fixed Assets Owners' Equity: Common Stock ($1 Par) Capital Surplus Retained Earnings Total Owners' Equity 100,000 300,000 100,000 500,000 Total Assets 1,700,000 Total Liabilities & Owners' Equity 1,700,000 Sargassum Caribbean Incorporated Income Statement for Year Ending December 31, 2020 Sales 2,500,000 800,000 100,000 104,000 1,496,000 Less: Cost of Goods Sold Less: Administrative Expenses Less Depreciation Earnings Before Interest and Тахes Less: Interest Expense 20.000 1,476,000 663,000 813,000 417,000…
Use the attached information to complete the ratio analysis. The Ratio Analysis is for Profitability.
Which type of financial ratio tells you how well a company can cover its long-term liabilities? a) efficiency b) liquidity Oc) solvency O d) profitability e) profitability and efficiency
Determine whether each of the following changes in risk ratios is good news or bad news about a company.a. Increase in receivables turnover.b. Decrease in inventory turnover.c. Increase in the current ratio.d. Increase in the debt to equity ratio.
Problem no 19, (Ref. 3) The following are the financial statements of Bagmati Bitumin Limited. Assets Cash Accounts receivable Inventory Total current assets Fixed assets Total assets Sales Cost of goods sold Depreciation Bagmati Bitumin Limited Balance Sheet as of December 31, 2016 and 2017 2016 Rs 650 2,382 4,408 Rs 7,440 2017 Liabilities and Equity Rs 710 Accounts payable 2,106 Notes payable 4,982 Other Rs 7,798 Rs 13,992 Rs 18,584 Total debt Total current liabilities Long-term debt Owners' equity (1,250 shares outstanding) Rs 21,432 Rs 26,382 Total liabilities and equity Earnings before interest and taxes Interest paid Taxable income Taxes @ 35% Net Income Dividends Addition to retained earnings Market price for a share of stock 2016 Rs 987 640 90 Rs 1,717 4,318 Rs 6,035 Rs 15,397 Bagmati Bitumin Limited Income Statement for the Year Ended December 31, 2017 2017 Rs 1215 718 230 Rs 2,163 4,190 Rs 6,353 Rs 20,029 Rs 21,432 Rs 26,382 Rs 28,000 11,600 2,140 Rs 14,260 980 Rs 13,280…
Using the attached spreadsheet, construct a supply chain finance model by calculating P&L and Balance Sheets and the appropriate ratios and measures and calculate the profit margin; ROA; inventory turns; along with transportation, warehousing, and inventory cost as a percentage of sales (revenues) for the following: Baseline Sales Transportation cost Warehousing cost Inventory carrying rate Cost of goods sold Other operating costs Average inventory Cash Accounts receivable Net fixed assets Interest Tax rate Current liabilities Long-term Liabilities $200,000,000 $12,000,000 $3,000,000 0.31 $90,000,000 $50,000,000 $8,000,000 $15,000,000 $30,000,000 $90,000,000 $10,000,000 20%² $65,000,000 $35,000,000
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Return on equity (ROE) using the traditional DuPont formula equals to A. (net profit margin) (interest component) (solvency ratio) B. (net profit margin) (interest component) (liquidity ratio) C. (net profit margin) (total asset turnover) (quick ratio) D. (net profit margin) (total asset turnover) (solvency ratio)