Find for Armstrong Company and Blair Company :Liquidity Ratio(a) Current RatioMarket tests(b) Price/earnings ratio(c) Divident yield ratio (%) BlairArmstrongCompanyCompanyStatement of Financial Position$ 35,00054,000170,000185,00085,500$ 529,50030,00043,00042,500420,000340,000CashAccounts receivable (net)InventoryProperty, plant, and equipment (net)Other non- current assets$ 875,500$ 52,50076,000554,000132,00061,000Total assets$134,00081,500230,00042,00042,000Current liabilitiesLong-térm debt (10%)Share capitalContributed surplusRetained earnings$ 529,500$ 875,500Total liabilities and shareholders' equityStatement of EarningsSales revenue (1/3 on credit)Cost of sales$ 600,000(300,000)(216,000)$ 960,000(432,000)(384,000)$ 144,000Expenses (including interest and income tax)84,000Net earnings Selected data from the financial statements for the previous year followsArmstrongCompany35,00077,00081,500BlairAccounts receivable (net)InventoryLong-term debtOther data:Company$ 55,00023,00076,000Share price year-end1815Income tax rate30%30%Dividends declared and paidShares Outstanding$ 300,00050,000$48,00015,000%24%24

Liquidity ratios: These ratios reflect the liquidity position of the company to settle its short…

Answered: Find for Armstrong Company and Blair…

Find for Armstrong Company and Blair Company : Liquidity Ratio (a) Current Ratio Market tests (b) Price/earnings ratio (c) Divident yield ratio (%)

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

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)
4. According to the basic DuPont equation, a firm's ROE is the product of what other two ratios? a. net profit margin and the equity multiplier b. ROA and the equity multiplier C. net profit margin and return on equity d. net profit margin and total asset turnover
Indicate whether the following are a measure of (a) liquidity, (b) profitability, or (c) leverage. 1. Quick ratio 2. Times interest earned ratio 3. Current ratio 4. Ratio of net sales to assets 5. Return on total assets 6. Accounts receivable turnover 7. Return on stockholders' equity 8. Book value per share of common stock 9. Ratio of liabilities to stockholders' equity 10. Acid-test ratio 11. Earnings per share of common stock 12. Merchandise inventory turnover 13. Working capital
Identify two ratios to use to analyze a firm’s liquidity position, andwrite out their equations.
Liquidity Ratio Current Ratio Quick Ratio Leverage Ratio Debt to Total Assets Ratio Debt Equity Ratio Long-Term Debt to Equity Times Interest Earned Ratio Activity Ratios Inventory Turnover Fixed Assets Turnover Total Assets Turnover Accounts Receivable Turnover Average Collection Period Profitability Ratios Gross Profit Margin Operating Profit Margin Net Profit Margin Return on Total Assets (ROA) Return on Stockholder's Equity (ROE) Earnings Per Share (EPS) Price Earnings Ratio Please provide the numbers for the ratios.
Using these data from the comparative balance sheet of Rollaird Company, perform vertical analysis.
Which of the following ratios would NOT be considered to be a measure of a business economic performance? A.Return on assets B.Inventory days C.Return on equity D.Sales growth
Match the ratio to the building block of financial statement analysis to which it best relates.A. Liquidity and efficiency B. Solvency C. Profitability D. Market prospects Acid-test ratio
The balance in retained earnings is not affected by Choose net income. aluation of a company's ability to pay current net loss. issuance of common stock. dividends.
Which of the following is NOT a measure of a company's profitability? a) Return on Investment (ROI) b) Earnings Before Interest and Taxes (EBIT) c) Gross Profit Margin d) Debt -to-Equity Ratio
Calculate the firm’s Liquidity Ratios (Current Ratio and Quick Ratio), Profitability Ratios (for Net Income as well as EBIT), Efficiency (Total Assets Turnover, as well as A/C Receivables Turnover and Days in Accounts Receivables, Inventory Turnover Ratio and Days in Inventory), Debt Usage (Debt to Equity and Coverage Ratio), and Market-Value Based Ratios. For some ratios you can calculate only one value (for example, Profitability or Interest Coverage), and for some ratios you can calculate two values (one at the beginning and the other at the end of the year). Explain all calculations.
One of the most important applications of ratio analysis is to compare a company’s performance with that of other players in the industry or to compare its own performance over a period of time. Such analyses are referred to as a comparative analysis and trend analysis, respectively. A) A common size analysis requires the representation of financial statement data relative to a single financial statement item (or base account or value). What is the most commonly used base item for a common size balance sheet? Net income Earnings before interest and taxes Total assets Net sales Suppose you are conducting an analysis of the financial performance of Blue Hamster Manufacturing Inc. over the past three years. The company did not issue new shares during these three years and has faced some operational difficulties. The company has thus pilot tested some new forecasting strategies for better operations management. You have collected the company’s relevant…