Q2) Consider the financial statement of Kmart given in the table below.KmartIncome StatementNet operating revenuesCost of goods soldGross ProfitSelling, general and administrative expensesOperating incomeInterest expenseOther income (loss)- netIncome before taxesIncome taxesOther expensesNet incomeBalance SheetAssetsCash and cash equivalentsShort term investmentsNet receivablesInventoriesTotal current assetsProperty, plant and equipmentGoodwillOther assetsTotal assetsLiabilities and Stockholder EquityAccounts payableShort-term debtOther current liabilityTotal current liabilityLong-term debtOther liabilitiesTotal liabilitiesStockholder equity20102009734800 647000548400 486500186500 160600143300 12410043200 365003800350040050039800 33500129001150011006002590021500201014300200911700007500630059700553008700078400184200 153100291002450071005800307300 2615002010910008900200200976300123002001001007630065600 553001390012500179400 15640095004300 B.A. () Calculate the financial ratios of Kmart in 2010 and 2009. Show yourworkingsFinancial Ratio1. Return on Equity (ROE)2. Return on Asset (ROA)3. Percentage of assets investedin inventory (PII)4. Inventory Turnover (INVT))5. Days of inventory (DOI)6. Days sales outstanding (DSO)7. Days purchases outstanding(DPO)8. Cash-to-cash Cycle (C2C)Formula201020095,000,0821,15%8,8041,493,5557,24-12,20)Analyze the change between the years 2009 and 2010 in terms of financialratios. Which financial ratios would you check to evaluate the performance ofinventory management and cash management? Which year is better in terms ofinventory management and cash management?

Ratio analysis It is a quantitative method of measuring the company's liquidity, efficiency and…

Q2) Consider the financial statement of Kmart given in the table below. Kmart Income Statement Net operating revenues Cost of goods sold Gross Profit Selling, general and administrative expenses Operating income Interest expense Other income (loss)- net Income before taxes Income taxes Other expenses Net income Balance Sheet Assets Cash and cash equivalents Short term investments Net receivables Inventories Total current assets Property, plant and equipment Goodwill Other assets Total assets Liabilities and Stockholder Equity Accounts payable Short-term debt Other current liability Total current liability Long-term debt Other liabilities Total liabilities Stockholder equity 2010 2009 734800 647000 548400 486500 186500 160600 143300 124100 43200 36500 3500 500 33500 11500 600 21500 3800 400 39800 12900 1100 25900 201 14300 0 0 7500 6300 59700 55300 87000 78400 153100 24500 5800 307300 261500 184200 29100 7100 2009 11700 2010 2009 91000 76300 8900 12300 200 200 100100 76300 65600 55300 13900 12500 179400 156400 9500 4300

Q2) Consider the financial statement of Kmart given in the table below. Kmart Income Statement Net operating revenues Cost of goods sold Gross Profit Selling, general and administrative expenses Operating income Interest expense Other income (loss)- net Income before taxes Income taxes Other expenses Net income Balance Sheet Assets Cash and cash equivalents Short term investments Net receivables Inventories Total current assets Property, plant and equipment Goodwill Other assets Total assets Liabilities and Stockholder Equity Accounts payable Short-term debt Other current liability Total current liability Long-term debt Other liabilities Total liabilities Stockholder equity 2010 2009 734800 647000 548400 486500 186500 160600 143300 124100 43200 36500 3500 500 33500 11500 600 21500 3800 400 39800 12900 1100 25900 201 14300 0 0 7500 6300 59700 55300 87000 78400 153100 24500 5800 307300 261500 184200 29100 7100 2009 11700 2010 2009 91000 76300 8900 12300 200 200 100100 76300 65600 55300 13900 12500 179400 156400 9500 4300

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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Illies Corporation's comparative balance sheet appears below: Beginning Balance Assets: Current assets Cash and cash equivalents. Accounts receivable. Inventory. Total current assets Property, plant, and equipment. Less accumulated depreciation. Net property, plant, and equipment. Total assets. Liabilities and Stockholders' Equity Current liabilities: Accounts payable. Accrued wages and salaries payable.. Accrued income taxes payable. Notes payable. Total current liabilities. Long-term debt. Deferred income taxes. Total liabilities Stockholders' equity: Common stock. Retained earnings. Ending Balance Select one: $ 40,000 19,000 O a. $7,000 O b. $40,000 O c. $29,000 O d. $33,000 67,000 126,000 123,000 358,000 339,000 156,000 132,000 202.000 $328,000 $ 33,000 21,000 69,000 $ 18,000 35,000 23,000 207.000 $330,000 23,000 103,000 22,000 102,000 Total stockholders' equity 126,000 124.000 Total liabilities and stockholders' equity.... $328,000 $330.000 $ 19,000 37,000 19,000 19,000 22,000…
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Please tell me what statement or statements the following appears on. ACCUMULATED DEPRECIATION Income Statement Balance Sheet Statement of Cash Flows Statement of Retained Earnings
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The statement of financial position of Trend, Inc. is presented below. These are the only accounts in Trend's statement of financial position. Amounts indicated by question mark (?) can be calculated from the additional information given Cash Accounts rereivahle(net) Inventory Property. Dant and equipment (net ota LIabilitieS and Stockholders Equity Accounts Davable trade Income taxes Davable (current) Long-term debt Common stock Retained earnings Total Additional Information Gurrent ratio (at vear end) Total liabilities divided by total stockholders' equity 25,000 294,000 432,000 25.000 300.000 slavento turnover based on sales and ending inventor Inventor turnover based on cost of goods sold and ending inventory Gross margin for the year 1,5 to 1 0.8 15 times 10.5 times P315,000 What was rend' balance in trade accounts payable at year-end? What was Trend's balance in retained earnings at year-end? Was rends Dalance in the inventory account at year-end? The balance of Accounts…
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