Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 19BEA
Related questions
Question
As part of your analysis, you are required to investigate Carrium Insights Inc. cash flows and compute selected financial ratios using the financial statements provided
A company’s asset utilization or turnover ratios are intended to display how efficiently or intensively a firm uses its assets to generate sales. Calculate the following turnover ratios for 2020:
- Inventory Turnover
- Days’ sales in inventory
- NWC Turnover
- Total Asset Turnover
![CASE ANALYSIS - CARRIUM INSIGHTS INC.
The following comprehensive assessment is based on a continuing case study of Carrium Insights Inc.
The following financial statements have been provided:
Carrium Insights Inc.
Income Statement
For the year ended December 31, 2020
2020
('000s)
2,800
Sales
Cost of Goods Sold
Selling & Marketing Costs
Admin. Expenses
Depreciation Expense
Eamings before Interest & Taxes
Interest Expense
(1,400)
(75)
(25)
(50)
1,250
(20)
1,230
Taxable Income
Taxation (20%)
Net Income
(246)
984
Dividends (50%)
Addition to Retained Eamings
492
492
Carrium Insights Inc.
State ment of Financial Positi on
As at December 31, 2019 & 2020
2019
2020
2019
2020
('000s)
('000s)
('000s)
('000s)
ASSETS
LIABILITIES & EQUITY
Current Asse ts
Current Liabilities
Inventories
600
680
Accounts Payables
Nates Payables
1,100
1,360
Accounts Receivables
300
340
700
860
1,340
2,360
Cash & Equivalents
1, 100
1,800
2,220
2,000
Non-current Liabilites
770
568
Non Current Asse ts, Net
1,870
2,240
Total Liabilities
2,570
2,788
Equity
Common Stock
820
840
Retained Eamings
Total Equity
480
972
1,300
1,812
TOTAL ASSETS
3,870
4,600
TOTAL LIAB. & EQUITY
3,870
4,600](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2adcb78b-2225-4d66-aaa4-7252d8967a00%2F58ea6e8e-4c5d-45c9-855c-0375db55ac3b%2Fk5nzkb_processed.png&w=3840&q=75)
Transcribed Image Text:CASE ANALYSIS - CARRIUM INSIGHTS INC.
The following comprehensive assessment is based on a continuing case study of Carrium Insights Inc.
The following financial statements have been provided:
Carrium Insights Inc.
Income Statement
For the year ended December 31, 2020
2020
('000s)
2,800
Sales
Cost of Goods Sold
Selling & Marketing Costs
Admin. Expenses
Depreciation Expense
Eamings before Interest & Taxes
Interest Expense
(1,400)
(75)
(25)
(50)
1,250
(20)
1,230
Taxable Income
Taxation (20%)
Net Income
(246)
984
Dividends (50%)
Addition to Retained Eamings
492
492
Carrium Insights Inc.
State ment of Financial Positi on
As at December 31, 2019 & 2020
2019
2020
2019
2020
('000s)
('000s)
('000s)
('000s)
ASSETS
LIABILITIES & EQUITY
Current Asse ts
Current Liabilities
Inventories
600
680
Accounts Payables
Nates Payables
1,100
1,360
Accounts Receivables
300
340
700
860
1,340
2,360
Cash & Equivalents
1, 100
1,800
2,220
2,000
Non-current Liabilites
770
568
Non Current Asse ts, Net
1,870
2,240
Total Liabilities
2,570
2,788
Equity
Common Stock
820
840
Retained Eamings
Total Equity
480
972
1,300
1,812
TOTAL ASSETS
3,870
4,600
TOTAL LIAB. & EQUITY
3,870
4,600
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