Liquidity management Bauman Company's total current assets, total current liabilities, and inventory for each of the past 4 years follow Item 2019 2020 2021 Total current assets $17,440 $21,630 $22.920 Total current liabilities 12,890 12,630 9,090 5.270 Inventory 6,560 7,230 a. Calculate the firm's current and quick ratios for each year. Compare the resulting time series for these measures of liquidity b. Comment on the firm's liquidity over the 2019-2022 period c. If you were told that Bauman Company's inventory turnover for each year in the 2019-2022 penod and the industry averages were as follows, would this information support or conflict with your evaluation in part (b)? Why? Hem 2019 2020 a. Calculate the firm's current and quick ratios for each year. 2022 $26,480 16,920 7,510 2021 2022 LLL

Liquidity management Bauman Company's total current assets, total current liabilities, and inventory for each of the past 4 years follow Item 2019 2020 2021 Total current assets $17,440 $21,630 $22.920 Total current liabilities 12,890 12,630 9,090 5.270 Inventory 6,560 7,230 a. Calculate the firm's current and quick ratios for each year. Compare the resulting time series for these measures of liquidity b. Comment on the firm's liquidity over the 2019-2022 period c. If you were told that Bauman Company's inventory turnover for each year in the 2019-2022 penod and the industry averages were as follows, would this information support or conflict with your evaluation in part (b)? Why? Hem 2019 2020 a. Calculate the firm's current and quick ratios for each year. 2022 $26,480 16,920 7,510 2021 2022 LLL

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

A company has the following items for the fiscal year 2020: Total Equity = 15 million Total Assets = 30 million EBIT = 4 million Interest expense = 1 million Calculate the company’s equity multiplier and interest coverage ratio Write the formula for the following ratios and what each ratio measures: Asset turnover Inventory Turnover and Days Inventory Receivable Collection Period Write down the DuPont framework. How would you explain to your non-MBA non-Finance friend about the DuPont framework and why it is important? A company has the following items for the fiscal year 2020: Revenue = 10 million EBIT = 4 million Net income = 2 million Total Equity = 15 million Total Assets = 30 million Calculate the company’s net profit margin, asset turnover, equity multiplier and ROE Explain cash conversion cycle and why it is important to companies? Is it possible that a company has a negative cash cycle? Is it a good thing or a bad thing? A company has days of inventory 80…
What is the Financial Performance and Financial Position for:- a. Asset Managementb. Market Value
Base on the financial ratios of company A, what is your recommendations and conclusion for company A.
Required: Compute the following ratios for 2020: 1. Current Ratio 2. Quick Ratio 3. Receivable Turnover 4. Average Collection Period 5. Inventory Turnover 6. Average Sales Period 7. Working Capital 8. Debt Ratio 9. Equity Ratio 10. Debt to Equity Ratio 11. Time Interest Earned 12. Gross Profit Ratio 13. Operating Profit Margin 14. Net Profit Margin 15. Return on Assets
Compute profitability, liquidity, solvency and capital market standing ratios. Using the ratios computed above, evaluate company’s profitability,liquidity, solvency and capital market standing.
Please help me with all answers thanku
based on the ratios what can you say about the company's liquidity? Is it liquid enough to convert its asset in to cash immediately or within one year?
Below are the ratio results for Abcom for the year 2022. Performance Operating margin -18.66% Asset turnover 0.16 Return on Capital Employed -7.64% Working capital Inventory days 88.88 days Debtor days 46.18 days Trade creditor days 68.11 days Liquidity Current ratio 0.30 Acid test 0.25 Solvency Interest cover -2.56 Shareholder's view Return on equity 7.16% Required; Analyse and interpret the meaning of these results.
Profitability and Asset Management Ratios You are thinking of investing in Tikki's Torches, Inc. You have only the following information on the firm at year-end 2018: net income = $600,000, total debt = $13.0 million, debt ratio = 40%. What is Tikki's ROE for 2018?
GIVE THE FORMULAS FOR THE FOLLOWING EFFICIENCY RATIOS OF NESTLE. THANK YOU Ratio Analysis Efficiency Asset turnover Inventory turnover Receivables turnover Summary of Financial Ratios of Nestle 2020 2019 Average collection period (days) 0.68 4.254 7.849 46.519 0.724 4.993 7.867 46.323 Industry Average 449 days 68 days 34 days
Examine the selected data over the 5-year period as shown in the table below for Dumbledore Ltd. Item Sales Cost of sales EBIT Interest NPAT Current assets Total assets current liabilities Total liabilities Equity Gross margin Interest coverage Current ratio 2021 $m 286.41 180.03 51.18 37.07 35.13 43.85 226.18 55.99 98.99 127.19 0.37 1.38 0.78 Year 2020 $m 280.80 166.69 51.08 33.70 35.10 43.20 221.75 53.58 91.66 130.09 0.41 1.52 0.81 2019 $m 275.29 154.35 50.98 30.64 35.06 42.56 217.40 51.27 84.87 132.53 0.44 1.66 0.89 2018 $m 269.89 142.91 50.88 27.85 35.03 41.93 213.13 49.06 78.58 134.56 0.47 1.83 U.OJ 2017 $m 264.60 134.19 49.88 25.32 34.51 41.31 206.93 47.40 74.48 132.44 0.49 1.97 0.87 2016 $m 252.00 126.00 48.90 24.00 34.00 40.70 200.90 45.80 70.60 130.30 0.50 2.04 0.89
1. Calculate the cash operating cycle of Stone Limited for the year ended 30 April, 2018 and 2019.2. Calculate the comparative ratios for Stone limited for the year ended 30 April 2019. (to two decimal places where appropriate).3. Based on the result of the previous year end and the industry average. Draft a report addressed to the Board of Directors of Stone Limited analysing the performance of the company for the year 2019