nterpreting liquidity and activity ratios The table. shows key financial data for three firms that compete in the consumer products market Procter & Gamble, Colgate-Palmolive, and Clore a. Calculate each of the following ratios for all three companies: current ratio, quick ratio, inventory tumover, average collection period, total asset turnover b. What company is in the position of having greatest liquidity? c. Would you say that the three companies exhibit similar performance or quite different performance in terms of collecting receivables? Why do you think that might be? d. Which company has the most rapid inventory turnover? Which company appears to be least efficient in terms of total asset turnover? Are your answers to those questions a little surprising? If a company is best at inventory tumover and worst at total asset tumover, what do you think that means? CHILD a. For the three companies, the current ratios are: (Round to three decimal places) Procter and Gamble Colgate-Palmolive Current ratio Clorox

nterpreting liquidity and activity ratios The table. shows key financial data for three firms that compete in the consumer products market Procter & Gamble, Colgate-Palmolive, and Clore a. Calculate each of the following ratios for all three companies: current ratio, quick ratio, inventory tumover, average collection period, total asset turnover b. What company is in the position of having greatest liquidity? c. Would you say that the three companies exhibit similar performance or quite different performance in terms of collecting receivables? Why do you think that might be? d. Which company has the most rapid inventory turnover? Which company appears to be least efficient in terms of total asset turnover? Are your answers to those questions a little surprising? If a company is best at inventory tumover and worst at total asset tumover, what do you think that means? CHILD a. For the three companies, the current ratios are: (Round to three decimal places) Procter and Gamble Colgate-Palmolive Current ratio Clorox

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Description: Vi. SubjectFinance Interpreting liquidity and activity ratios The table.shows key financial data for three firms that compete in the consumer products market Procter & Gamble, Colgate-Palmolive, and Cloroxa. Calculate each of the following ratios for

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...

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The following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000
Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of goods sold 660.0 Gross profit 135.0 Selling expenses 73.5 EBITDA 61.5 Depreciation expenses 12.0 Earnings before interest and taxes (EBIT) 49.5 Interest expenses 4.5 Earnings before taxes (EBT) 45.0 Taxes (40%) 18.0 Net income 27.0 a. Calculate the ratios you think would be useful in this analysis. b. Construct a DuPont equation, and compare the companys ratios to the industry average ratios. c. Do the balance-sheet accounts or the income statement figures seem to be primarily responsible for the low profits? d. Which specific accounts seem to be most out of line relative to other firms in the industry? e. If the firm had a pronounced seasonal sales pattern or if it grew rapidly during the year, how might that affect the validity of your ratio analysis? How might you correct for such potential problems?