Long-term debt ratio Times interest earned 0.1 10.0 Current ratio 1.2 Quick ratio 1.0 Cash ratio 0.4 3.0 Inventory turnover Average collection period 73 days Use the above information from the tables to work out the following missing entries, and then calculate the company's return on equity. Note: Turnover and the average collection period are calculated using start-of-year, not average, values. (Enter your answers in millions. Round intermediate calculations and final answers to 2 decimal places.) INCOME STATEMENT (Figures in $ millions) Net sales Cost of goods sold Selling, general, and administrative expenses Depreciation Earnings before interest and taxes (EBIT) Interest expense 24.00 34.00 Income before tax Tax (35% of income before tax) Net income BALANCE SHEET (Figures in $ millions) This Year Last Year Assets Cash and marketable securities $34 Accounts receivable 48 Inventories 40 Total current assets $122 Net property, plant, and equipment 39 Total assets $161

Long-term debt ratio Times interest earned 0.1 10.0 Current ratio 1.2 Quick ratio 1.0 Cash ratio 0.4 3.0 Inventory turnover Average collection period 73 days Use the above information from the tables to work out the following missing entries, and then calculate the company's return on equity. Note: Turnover and the average collection period are calculated using start-of-year, not average, values. (Enter your answers in millions. Round intermediate calculations and final answers to 2 decimal places.) INCOME STATEMENT (Figures in $ millions) Net sales Cost of goods sold Selling, general, and administrative expenses Depreciation Earnings before interest and taxes (EBIT) Interest expense 24.00 34.00 Income before tax Tax (35% of income before tax) Net income BALANCE SHEET (Figures in $ millions) This Year Last Year Assets Cash and marketable securities $34 Accounts receivable 48 Inventories 40 Total current assets $122 Net property, plant, and equipment 39 Total assets $161

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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Please interpret the numbers and compare the number, no required to explain the theory. Also answer if the business is a going concern? CKM RATIOS: 2016 2017 2018 2019 2020 2021 Current ratio 0.66 0.58 0.96 0.92 1.06 0.83 Quick ratio 0.43 0.37 0.58 0.53 0.49 0.57 Operating cash flow ratio 0.10 0.01 0.01 0.00 0.02 0.07 PWC RATIOS: 2016 $000 2017 $000 2018 $000 2019 $000 2020 $000 2021 $000 Current ratio 2.37 2.23 2.07 1.89 2.74 2.16 Quick ratio 0.93 0.95 0.81 0.80 1.36 1.01 Operating cash flow ratio 1.02 0.72 0.96 0.47 0.32 0.52
c. Compute the quick ratio for each company. Round your answers to one decimal place. Abercrombie: The Gap: Current assets: Analyze and compare Abercrombie & Fitch and The Gap Abercrombie & Fitch Co. (ANF) and The Gap, Inc. (GPS) are two U.S. apparel retailers. The current assets and current liabilities for each company from recent balance sheets are as follows (in thousands): Cash Accounts receivable Inventories X Other current assets Total current assets Current liabilities: Accounts payable Other current liabilities Total current liabilities X Abercrombie & Fitch The Gap $723,135 $1,364,000 73,112 290,000 437,879 2,156,000 101,824 706,000 $1,335,950 $4,516,000 $226,878 332,039 $558,917 $1,174,000 2,035,000 $3,209,000
Question 2: What is the profit margin for 2014? (Round to two decimal places.) What is the profit margin for 2013? (Round to two decimal places.) What is the return on assets for 2014? (Round to two decimal places.) What is the return on assets for 2013? (Round to two decimal places.) What is the return on equity for 2014? (Round to two decimal places.) What is the return on equity for 2013? (Round to two decimal places.) Should any of these ratios or the change in a ratio warrant concern for the managers of Tyler Toys or the shareholders? (Select the best response.) A. These ratios indicate a somewhat weak firm performance for the equity holders with an ROE of over 42.96% for 2013. B. These ratios indicate a somewhat weak firm performance for the equity holders with an ROE of over 42.96% for 2014. C. These ratios indicate a somewhat strong firm performance for the equity holders with an ROE of over 42.96% for 2014. D.…
Hello, how do I solve this problem? I attached the bottom part of the question and what it's asking for since it wouldn't fit in the screenshot. Assuming that total assets were $3,112,000 at the beginning of the current fiscal year, determine the following. When required, round to one decimal place. a. Ratio of fixed assets to long-term liabilities b. Ratio of liabilities to stockholders' equity c. Asset turnover d. Return on total assets % e. Return on stockholders’ equity % f. Return on common stockholders' equity %
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