performance of National Company. Comment on overall financial position and financial health of the business. Identify problems and recommendpossible solutions, if historical ratios of company are: (Ratios201720182019Current Ratio1.41.51.6Acid Test Ratio0.850.740.63Asset Turnover Ratio4 times3.22.5Inventory Turnover Ratio6 times5.5Collection Period6 times5.55

Ratio analysis is a very important technique of financial analysis by which financial position of…

Answered: performance of National Company.…

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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The following selected information is for H55 Corporation: Total assets Total shareholders' equity Sales Cost of goods sold Net income. H55 had no preferred shares. ype here to search 2021 $357,000 $285,000 136.000 503.000 378.759 2020 32.695 97,500 394,000 276.982 29.944 2019 $267,000 48,500 297.000 181,000 20,400
Assess the relative profitability of the company (as benchmarked with competitors) using the following ratios: gross profit margin net profit margin return on assets return on equity
The DuPont equation shows the relationships among asset management, debt management, and -Select- ROE = Profit margin x Total assets turnover x Equity multiplier Ratio analysis is important to understand and interpret financial statements; however, sound financial analysis involves more than just calculating and interpreting numbers. -Select- Quantitative Problem: Rosnan Industries' 2019 and 2018 balance sheets and income statements are shown below. Balance Sheets: Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets Accounts payable Accruals Notes payable Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity Sales Operating costs excluding depreciation EBITDA Depreciation and amortization EBIT Interest EBT Taxes (25%) Net income Income Statements: Dividends paid Addition to retained earnings Shares outstanding Price WACC 2019 $100 Ś 85 275 300 375 350 750 $ 735 2,000 1,490 $2,750…
Instructions: Kindly make an analysis about the asset management ratio (Receivable Turnover, Fixed Asset Turnover, and Total Asset turnover) of SM Investment Corporation.
Please solve the question sub-division b alone.
MAKE A BASIS AND DISCUSSION ON THE EFFICIENCY RATIO OF NESTLE (ASSET TURNOVER, INVENTORY TURNOVER, RECEIVABLES TURNOVER, AND AVERAGE COLLECTION PERIOD (DAYS).
PERFORM A LIQUIDITY AND PROFITABILITY ANALYSIS ON THE FOLLOWING COMPANY UTILIZING THE FOLLOWING RATIOS: ASSET TURNOVER RETURN ON ASSESTS RETURN ON EQUITY statement of operations 12 Months Ended Jul. 31, 2020 Jul. 31, 2019 Revenues: Revenues $ 1,497,826,000 $ 1,684,392,000 Costs and expenses: Operating expense - personnel, vehicle, plant and other 493,055,000 468,868,000 Operating expense - equipment lease expense 33,017,000 Equipment lease expense, preadoption 33,073,000 Depreciation and amortization expense 80,481,000 78,846,000 General and administrative expense 45,752,000 59,994,000 Non-cash employee stock ownership plan compensation charge 2,871,000 5,693,000 Asset impairments 0 0 Loss on asset sales and disposals 7,924,000 10,968,000 Operating income 148,670,000 113,028,000 Interest expense (192,962,000) (177,619,000) Loss on extinguishment of debt (37,399,000) Other income (expense), net (460,000) 369,000 Loss before income…
You have been hired as a financial analyst of a firm and your team is working on an independent assessment of XYZ Inc. Your assistant has provided you with the following data for XYZ Inc. and their industry. R r e d : Ratio 2020 2019 2018 2020- Industry Average Inventory Turnover 62.65 42.42 32.25 53.25 Receivables in days 94 63 50 115 Debt to Equity 0.75 0.85 0.90 0.88 Quick Ratio 1.028 1.03 1.029 1.031 Current Ratio 1.33 1.21 1.15 1.25 Required: a) In annual report of firm CEO wrote, we had higher liquidity largely due to an increase in highly liquid current assets (cash, account receivable and short-term marketable securities). Is the CEO correct? b) what can you say about the firm's collection period and inventory turnover?
The current ratio: a. Is used to help assess a company's ability to pay its debts in the near future. b. Measures the effect of operating income on profit. c. Is used to measure the relationship between assets and long-term debt. d. Is used to measure a company's collection period.
Using the data for 2018 and the industry norms, compute the financial ratios that were discussed in this chapter (current ratio, return on assets, operating profit margin, total asset turnover, debt ratio, and return on equity).
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
You are required to calculate:1. Liquidity ratios 2. Solvency rations 3. Profitability ratios For the selected companies and shortly write your comments and findings.

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