inancial Statement Analysis Compute for Profitability Ratio with Substantial Analysis: a. Gross Profit Margin b. Profit Margin c. Return on Total Assets d. Return on Equity
Q: Which of the following is NOT one of the ratios in Profitability group? Select one: a. Quick ratio…
A: Profitability ratios are those ratios which helps in measuring and determining the profitability of…
Q: Which ratio is calculated to ascertain the efficiency of inventory management in terms of capital…
A: Inventory turnover ratio: This is a financial measure that is used to evaluate as to how many times…
Q: Which of the following is an appropriate computation for return on investment? a. Sales…
A: Return on Investment (ROI) is the measure to assess the efficiency of the capital invested. It is…
Q: Terminology Matching Profitability Ratios Rationalization Return on Assets Ratio Return on Common…
A: Profitability Ratios - Measures of income or operating success of the company for a given period of…
Q: This ratio is used to reflect t profit earning performance firm's assets return on assets net profit…
A: Solution: Profit earnings performance of the company's assets means that how much of the company's…
Q: Asset utilization ratios:
A: Asset Turnover ratios are: Fixed Asset Turnover Ratio= SalesFixed Assets Total Asset Turnover Ratio=…
Q: Interpretation and verbal analysis compared to industry ratios: 1. Liquidity 2. Profitability 3.…
A: Liquidity ratio measures an entity's ability to pay off its short-term or current liabilities and…
Q: Common measures of a company's profitability include price-earnings ratio earnings per share…
A: The profitability ratios are used to measure the business's ability for generating profit from its…
Q: What is the possible link between the following ratios: (a) profitability and efficiency (b)…
A: SOLUTION A- Relation between profitability and efficiency ratios Profitability ratio depicts how…
Q: Gross profit ration Net Profit ratio Current Ratio
A: Thank you for posting questions. Since you have posted multiple questions, as per the guideline I am…
Q: Comparative Profit and Loss Statement:
A: Joint costs are costs incurred up to the point of separation of Products. In this case, joint costs…
Q: 6.. ratios measure the ability of a firm to earn an adequate eturn on sales, O A) Asset utilization…
A: The ratios which measures the ability of an organization to generate adequate earnings are relative…
Q: Assessing a firm's overall solvency is best accomplished by evaluating current ratio Odebt to assets…
A: Solvency Ratio :— A solvency ratio is one of many metrics used to determine whether a company can…
Q: Analyze the company’s profitability and its ability to generate sufficient operating profit by using…
A: Ratio Analysis The purpose of preparing the ratio analysis to know the strength and weakness of the…
Q: Match the ratio to the building block of financial statement analysis to which it best relates.A.…
A: Gross margin ratio = ( Total revenue - Cost of Goods sold ) / Total revenue.
Q: Computing liquidity, working captial and current ratio. Computing measures of profitability, profit…
A: Liquidity ratios emphasizes on the company’s ability to fulfill the current obligations out of the…
Q: Profitability ratios describe – A. Organization's profit В. Organization's debt C. Organization's…
A: As per Bartleby guidelines, If multiple questions are posted , only first 1 question will be…
Q: A multistep income statement divides revenues and expenses further to show. Select one: a. subtotals…
A: An income statement that categorizes incomes and expenses into operational and non-operating heads…
Q: In composite analysis, the items in the Profit and Loss alc are expressed as a percentage of *…
A: Under the composite analysis one variable is taken from the profit and loss statement while another…
Q: Define each of the following terms: d. Forecasted financial statement approach using percentage of…
A: Forecasted financial statement approach using percent of sales: This process begins with future…
Q: Which one of the following formulas is correct? O i) Profit margin = EBIT / Sales O ii) ROA = ROE /…
A: ROA = ROE / Equity Multiplier ROA = Net Income / Total Assets ROE = Net Income / Shareholders'…
Q: Which of the following is a measure of profitability?a. Quick (acid-test) ratiob. Net salesc.…
A: Profitability is that position of the company were the revenue earned is over the expenses incurred…
Q: pute the following requirer a. Gross profit rate b. Operating profit margi C. Net profit margin rate…
A: Thank you for posting questions. Since you have posted multiple questions, as per the guideline I am…
Q: How to Prepare a vertical analysis for the Statement of Financial Position and the Statement of…
A: Vertical Analysis - Common Size Statement is also known as the vertical analysis method. The Company…
Q: When performing vertical analysis of an income statement, the base amount is ________. A sales…
A: Vertical analysis of income statement shows each item of income statement as a percentage of sales…
Q: 1. Provide a Liquidity Ratio Analysis based on the current Ratio. 2. Provide a Profitability ratio…
A: Ratio Analysis is the analysis of the financial statements of the company which determines the…
Q: Explain profitability ratios
A: SOLUTION:- A profitability ratio is a measure of profitability, which is a way to measure a…
Q: 1. Profitability ratios Name of Ratio Formula Computation Goss profit margin Gross Profit Net Sales…
A: Solution:- 1)Gross profit margin =Gross profit / Net sales x 100
Q: b. Compute the following Ratios: iv. Average Collection period v. Profit Margin vi. Debt to Total…
A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…
Q: How to calculate net profit margin in pro forma balance sheet
A: Financial statements are referred as the records of the business operations and financial…
Q: RATIO CALCULATIONS Assune the following relationships for hhe Brauer Cop Sales total assets Retum on…
A: Ratio analysis is the study of financial statements to determine the financial health and the…
Q: Use the attached information to complete the ratio analysis. The Ratio Analysis is for Liquidity,…
A: Ratio analysis is a quantitative method of gaining insight into a company's liquidity, operational…
Q: a. Return on equity % b. Return on assets % Asset utilization Equity multiplier Profit margin f.…
A: Introduction: Ratio analysis can be defined as quantitative technique that is used by the…
Q: The ratio is the best overall measure of management's performance O a. Activity ratio b. Debt-equity…
A: Operating Efficiency Ratio- Operating Profit Margin/ Operating Efficiency ratio refers to the ratio…
Q: tability Ratios from a company's financial statement, and how such profitability ratios are…
A:
Q: Match the ratio to the building block of financial statement analysis to which it best relates.A.…
A: Debt to Equity ratio is calculated by the following formula: Debt to Equity = Debt/Equity
Q: MODIFIED MATCHING TYPE: From the financial ratios listed in the box, group the financial ratios as…
A: Profitability ratio determines the profitability of the entity over a period of time with regard to…
Q: profitability ratios
A: Gross profit ratio = Gross profit * 100/Net sales Operating profit ratio = Operating income *…
Q: The ownership ratio measures financial leverage or the ratio of owner's equity to total assets total…
A:
Q: Profitability ratios: 1. 2. 3. 4. 5. 6. Return on equity Return on assets Gross profit percentage…
A: Ratio analysis is a technique of analysis and interpretation of financial statements. It is the…
Q: Match the ratio to the building block of financial statement analysis to which it best relates.A.…
A: Liquidity: Liquidity is what and how quickly company can turn assets into cash. Efficiency:…
Q: In a DuPont analysis, what are the components of return on assets?a. Net Profit Margin Ratio and…
A: Formula of Return on assets in Du Pont analysis is as follows:Return on assets=Net profit…
Q: Interpret the results: • Return on equity • Return on assets • Gross profit margin • Operating…
A: The financial ratios are used as a measure of the financial health of the company.
Q: Find the below following: Gross Profit Ratio Operating Ratio Net Profit Ratio Operating (Net) Profit…
A: as per Bartleby guidelines when multiple subparts asked for one single question we can answer 1st 3…
Financial Statement Analysis
Compute for Profitability Ratio with Substantial Analysis:
a. Gross Profit Margin
b. Profit Margin
c. Return on Total Assets
d. Return on Equity
Step by step
Solved in 3 steps
- SAMPAGUITA INSURANCE COMPANY FINANCIAL STATEMENT 2021 ASSETS Cash and cash equivalents P2,574,335 Interest receivable 132,241 Investments 12,340,312 Investment in subsidiary 529,248 Premiums due from policyholders 10,831 Policy loans receivables - net 369,607 Coverage debt receivables - net 960,404 Reinsurance assets 53,439 Property and equipment - net 415,241 Right-of-use assets - net 533,003 Deferred acquisition costs 12,455,967 Other assets - net 1,647,258 Total General Assets 32,021,886 Assets Held to Cover Linked Liabilities 106,573,549 PI 38,595,435 ROSE INSURANCE COMPANY FINANCIAL STATEMENT ASSETS Cash and cash equivalents (Note 4) P 2,177,119,101 Insurance receivables (Note 26) Financial assets (Note 5) 133,720,939 Financial assets at fair value through profit or loss (FVPL) 60,091,263,262 Available-for-sale financial assets 42,348,896,307 Loans and receivables 10,508,989,111 Accrued income (Note 7) 379,787,097 Reinsurance assets (Note 13)…Compared to the ROE in 2020, the ROE in 2021 has Improved / 6.65% Improved / 3.43% Worsened / -6.65% Worsened / -3.43% Stayed the same / 0% bySelected financial data regarding current assets and current liabilities for ACME Corporation and Wayne Enterprises, are as follows: ACME Corporation Wayne EnterprisesCurrent assets:Cash and cash equivalents $ 2,494 $ 541Current investments 125Net receivables 1,395 217Inventory 10,710 8,600Other current assets 773 301Total current assets $15,372 $9,784Current liabilitiesCurrent debt $ 1,321 $ 47Accounts payable 8,871 5,327Other current liabilities 1,270 2,334Total current…
- Category Accounts payable Accounts receivable Accruals Additional paid in capital Cash Common Stock COGS Current portion long-term debt Depreciation expense Interest expense Inventories Long-term debt Net fixed assets Notes payable Operating expenses (excl. depr.) Retained earnings Sales Taxes Prior Year Current Year 3,106.00 5,972.00 6,919.00 8,940.00 5,691.00 6,099.00 20,212.00 13,343.00 ??? ??? 2,850 18,751.00 500 2,850 22,826.00 500 965.00 1,016.00 1,259.00 1,123.00 3,086.00 6,750.00 16,982.00 22,296.00 75,731.00 73,844.00 4,053.00 6,596.00 19,950 20,000 35,937.00 34,762.00 46,360 45,530.00 350 920 What is the firm's cash flow from operations? Submit Answer format: Number: Round to: 0 decimal places.3. Following information is available in respect of A LtdParticulars As on 31.3.2019(Rupees. In Lacs)As on 31.3.2020(Rupees. In Lacs)Investment in FinancialAssets- 100Equity Share Capital 150 160Long term Loans taken 100 200Dividend paid - 26Dividend received - 10Interest received - 15a. Prepare the cash flow from financing activities from the above information and givereasons for each element whether these elements belongs to financing activities or not. b. Calculate the relationship between the debt and equity for the year 2019 and 2020, andcommentCategory Accounts payable Accounts receivable Accruals Additional paid in capital Cash Common Stock COGS Current portion long-term debt Depreciation expense Interest expense Inventories Long-term debt Net fixed assets Notes payable Operating expenses (excl. depr.) Retained earnings Sales Taxes Prior Year Current Year ??? ??? 320,715 397,400 40,500 33,750 500,000 541,650 17,500 47,500 94,000 105,000 328,500 431,876.00 33,750 35,000 54,000 54,402.00 40,500 42,823.00 279,000 288,000 339,660.00 398,369.00 946,535 999,000 148,500 162,000 126,000 162,881.00 306,000 342,000 639,000 847,928.00 24,750 47,224.00 What is the current year's return on assets (ROA)? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))
- II. The following is a comparative balance sheet of ABC Co. for December 31, 2022 and 2021: Cash and cash equivalents Accounts receivable Inventories Investment in bonds at amortized cost Equipment Accumulated depreciation Total Assets Accounts payable Bonds payable, due 2025 Ordinary stock, P20 par Share premium Retained earnings Total Liabilities and Equity Additional information: . 2022 250,000 327,600 822,000 0 . 2,400,000 (700,000) 3,099,600 359,000 0 1,800,000 280,000 660,600 3,099,600 2021 220,000 356,000 780,000 200,000 2,040,000 (760,000) 2,836,000 • Net income for 2022, P545,600. Depreciation reported on income statement, P140,000. Fully depreciated equipment, no salvage value, was scrapped. Equipment was purchased for P560,000. Bonds of P400,000 were retired at their face value. 281,000 400,000 1,600,000 200,000 355,000 2,836,000 10,000 shares of ordinary stock were issued for cash of P28 per share. Cash dividends declared and paid, P240,000 Investment in bonds with carrying…Use the following information to answer all accounting questions Category Accounts payable Accounts receivable Accruals Additional paid in capital Cash Common Stock @ par value COGS Depreciation expense Interest expense Inventories Long-term debt Net fixed assets Notes payable Operating expenses (excl. depr.) Retained earnings Sales Taxes 2020 1726 2812 705 2000 4028 170 1755 99 185 2574 8754 8312 750 799 3621 4338 450 2021 1120 2254 800 2300 175 2056 120 271 1829 8245 10254 547 1021 4021 5768 690Current Attempt in Progress XYZ provided the following financial information: XYZBalance SheetAs of 12/31/19 Assets: Liabilities and Equity: Cash and marketable securities $27,476 Accounts payable and accruals $154,860 Accounts receivable $143,519 Short-term notes payable $21,255 Inventory $212,379 Total current liabilities $176,115 Total current assets $383,374 Long term debt $155,510 Net plant and equipment $602,704 Total liabilities $331,625 Goodwill and other assets $42,422 Common stock $312,719 Retained earnings $384,156 Total assets $1,028,500 Total liabilities and equity $1,028,500 In addition, it was reported that the firm had a net income of: $158,402 and net sales of: $4,272,431 Calculate the following ratios for this firm (Use 365 days for calculation. Round answers to 2 decimal places, e.g.…
- O Accounts payable Accounts receivable Accruals Category Additional paid in capital Cash Common Stock COGS Current portion long-term debt Depreciation expense Interest expense Inventories Long-term debt Not fixed assets Notes payable Operating expenses (excl. depr.) Retained earnings Sales Taxes Prior Year Current Year 3,153.00 5,992.00 6,936.00 9,031.00 5,792.00 6,116.00 20,429.00 13,896.00 ??? Category 222 2,850 22,561.00 500 952.00 4,008.00 46,360 350 What is the firm's cash flow from financing? 1,259.00 1,120.00 3,060.00 6,658.00 16,820.00 22,100.00 75,431.00 74,071.00 6,567.00 19,950 20,000 35,524.00 34,531.00 45,432.00 2,850 Submit 18,594.00 500 1,019.00 920 Answer format: Number: Round to: 0 decimal placesFollowing information is available in respect of A LtdParticulars As on 31.3.2019(Rupees. In Lacs)As on 31.3.2020(Rupees. In Lacs)Investment in FinancialAssets- 100Equity Share Capital 150 160Long term Loans taken 100 200Dividend paid - 26Dividend received - 10Interest received - 15a. Prepare the cash flow from financing activities from the above information and givereasons for each element whether these elements belongs to financing activities or notThe following information is available in respect of Vegas plc for the last 2 years ended 31 December. Non-current Assets (at Net Book Value) Current Assets: Inventory Trade receivables Cash at bank Equity and Liabilities: Equity Share capital £1 Share premium Revenue reserve Vegas plc: Statement of Financial Position 31.12.2021 Non-current Liabilities: Loan Current Liabilities: Trade payables Taxation (accrual) Operating profit Taxation £000 390 462 80 88 142 £000 2,100 932 3.032 900 50 852 1,802 1,000 230 3.032 274 (156) 118 (87) 31 31.12.2020 Vegas plc: Income Statement (Extract) for the year ended 31.12.2021 £000 Dividends Retained profit for the year The following information is also available: • There were no non-current asset disposals during the year. • Depreciation for the year was £240,000. £000 210 346 50 73 137 £000 1,975 606 2.581 700 821 1,521 850 210 2.581 Prepare, in a suitable format, the Statement of Cash Flow for Vegas plc for the year ended 31.12.2021, presenting…