Profitability ratios:1.2.3.4.5.6.7.8.9.10.RatioAsset turnover ratios:Return on equityReturn on assetsGross profit percentageNet profit margin11.12.13.Earnings per shareQuality of incomeLiquidity ratios:Total asset turnoverFixed asset turnoverReceivable turnoverInventory turnoverCurrent ratioQuick ratioCash ratioSolvency ratios:17.14. Times interest earned ratio15.Cash coverage ratio16.Market ratios:Debt/equity ratioPrice/earnings ratioBLUE WATERCOMPANY0.000.000.00%%%%PRIME FISHCOMPANY0.000.000.00%%%%Check my work2 2SkippedeBookBalance sheet:CashAccounts receivable (net)InventoryProperty & equipment (net)Other assetsTotal assetsCurrent liabilitiesLong-term debt (interest rate: 10%)Capital stock ($10 par value)Additional paid-in capitalRetained earningsTotal liabilities and stockholders' equityIncome statement:Sales revenue (1/3 on credit)Cost of goods sold.Operating expensesNet incomeOther data:Per share stock price at end of current yearAverage income tax rateDividends declared and paid in current yearBlue Water$ 42,80047,00090,000167,00085,800S 432,600S 90,00077,600160,60030,80073,600$ 432,600$ 420,000(232,000)(164,600)S 23,400S 23.830%$ 34,800Prime Fish$ 19,20036,40050,800422,600323,000$ 852,000$76,00063,600530,000107,80074,600$ 852,000$ 784,000(401,800)(312,800)$ 69,400$$ 157,0003330%Both companies are in the fish catching and manufacturing business. Both have been in business approximately 10 years, and eachhas had steady growth. The management of each has a different viewpoint in many respects. Blue Water is more conservative, and asits president has said, "We avoid what we consider to be undue risk." Neither company is publicly held.Required:1. Complete a schedule that reflects a ratio analysis of each company. (Round your intermediate calculations and final answers to 2decimal places. Enter percentage answers rounded to 2 decimal places (l.e. 0.1234 should be entered as 12.34).)Check my work

Ratio analysis is a technique of analysis and interpretation of financial statements. It is the…

Answered: Profitability ratios: 1. 2. 3. 4. 5. 6.…

Profitability ratios: 1. 2. 3. 4. 5. 6. Return on equity Return on assets Gross profit percentage Net profit margin Earnings per share Quality of income

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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Return on equity (ROE) using the traditional DuPont formula equals to A. (net profit margin) (interest component) (solvency ratio) B. (net profit margin) (interest component) (liquidity ratio) C. (net profit margin) (total asset turnover) (quick ratio) D. (net profit margin) (total asset turnover) (solvency ratio)
KINDLY ANSWER PARTS IV & V FOLLOWED BY PART B.i,ii,iii
4. According to the basic DuPont equation, a firm's ROE is the product of what other two ratios? a. net profit margin and the equity multiplier b. ROA and the equity multiplier C. net profit margin and return on equity d. net profit margin and total asset turnover
Indicate whether the following are a measure of (a) liquidity, (b) profitability, or (c) leverage. 1. Quick ratio 2. Times interest earned ratio 3. Current ratio 4. Ratio of net sales to assets 5. Return on total assets 6. Accounts receivable turnover 7. Return on stockholders' equity 8. Book value per share of common stock 9. Ratio of liabilities to stockholders' equity 10. Acid-test ratio 11. Earnings per share of common stock 12. Merchandise inventory turnover 13. Working capital
1. Which of the following is referred to as the Accounting Equation? Assets Liabilities + Equity Equity Liabilities + Assets Liabilities Assets + Equity Assets = Liabilities - Equity = 2. Which of the following make up the Finance Equation? (select all that apply) Revenues = Price x Volume Costs = Fixed + Variable Profit Revenues-Costs Income Sales - COGS
12. Which two ratios multiplied by each other equal Return on Total Assets? (A) Profit Margin (B) Return on Equity (C) Current Ratio (D) Price Earnings Ratio (E) Total Asset Turnover
EAST COAST YACHTS 2020 Income Statement Sales Cost of goods sold Selling, general, and administrative Depreciation EBIT Interest expense EBT Taxes (25%) Net income Dividends Retained earnings $550,424,000 397,185,000 65,778,000 17,963,000 $ 69,498,000 9,900,000 $ 59,598,000 14,899,500 $ 44,698,500 $ 19,374,500 25,324,000 Current assets Cash and equivalents Accounts receivable Inventory Other Total current assets Fixed assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Intangible assets and others Total fixed assets Total assets EAST COAST YACHTS 2020 Balance Sheet $ 10,107,000 16,813,300 18,135,700 1,054,900 $ 46,110,900 $412,032,000 (102,452,000) $309,580,000 6,772,000 $316,352,000 $362,462,900 Current liabilities Accounts payable Accrued expenses Total current liabilities Long-term debt Total long-term liabilities Stockholders' equity Preferred stock Common stock Capital surplus Accumulated retained earnings Less treasury stock…
Liquidity Ratio Current Ratio Quick Ratio Leverage Ratio Debt to Total Assets Ratio Debt Equity Ratio Long-Term Debt to Equity Times Interest Earned Ratio Activity Ratios Inventory Turnover Fixed Assets Turnover Total Assets Turnover Accounts Receivable Turnover Average Collection Period Profitability Ratios Gross Profit Margin Operating Profit Margin Net Profit Margin Return on Total Assets (ROA) Return on Stockholder's Equity (ROE) Earnings Per Share (EPS) Price Earnings Ratio Please provide the numbers for the ratios.
ratio of net income to equity is also known as: Total net equity ratio Profit margin Return on equity Net income ratio None of these are correct.
27-A prepare the following: GROSS PROFIT RATIO PROFIT MARGIN RETURN ON ASSETS EARNINGS PER SHARE CURRENT RATIO ACID TEST RATIO DEBT RATIO
Which of the following is NOT a measure of a company's profitability? a) Return on Investment (ROI) b) Earnings Before Interest and Taxes (EBIT) c) Gross Profit Margin d) Debt -to-Equity Ratio
Define each of the following terms: a. Liquid asset b. Liquidity ratios: current ratio; quick ratio c. Asset management ratios: inventory turnover ratio d. Debt management ratios: total debt to total capital; times-interest-earned (TIE) ratio e. Profitability ratios: profit margin; return on total assets (ROA); return on common equity (ROE); return on invested capital (ROIC); basic earning power (BEP) ratio f. Market value ratios: price/earnings (P/E) ratio; market/book (M/B) ratio; enterprise value/EBITDA ratio