Question 4The following information has been extracted from the financial statements and thenotes of Parvati Ltd.20202019$ 33 100Cash assetsMarketable securities$ 35900100 300107 000Receivables73900166 80072 500Inventories182 000Prepaid expensesProperty, plant and equipmentCurrent liabilities4200300 0006300258 700178 200950 600160 500902 900Revenue (sales on credit)Cost of sales570 700532 800Additional Information:1. Total expenses (excluding cost of sales) were $300,000 in 2020.2. Non-Current Liabilities were $120,000 in 2020Required(a)Calculate the following ratios for 2020 only.Current ratio (Current Assets / Curent Liabilities)Receivables turnover in days (Average Receivables / Credit Sales) * 365Inventory turnover in days (Average inventory / COGS) * 365Profit margin (Net Profit / Credit Sales) * 100Return on owners equity (Net Profit / Total Equity) * 100i.ii.iii.iv.v.(b)position of Parvati Ltd. Include in your comments any other information that mayassist your assessment.Provide a detailed comment comparing the Liquidity and Profitability

Financial ratios are used by businesses to measure efficiency and profitability based on the…

Answered: Question 4 The following information…

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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Fancy Clothing Company is authorized to issue 110,000 shares of $2 par common stock. The company issued 5,100 shares at $6 per share, when the market price of the common stock was $10 per share. Later, Charter declared and paid a $0.50 per share cash dividend. The journal entry to declare the cash dividend would be: O Dividends Payable - Common 55,000 Cash Dividends O Cash Dividends OOO Dividends Payable - Common O Cash Dividends Dividends Payable - Common O Dividends Payable - Common Cash Dividends 2,550 55,000 2,550 55,000 2,550 55,000 2,550
Revenues Expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense Total expenses Net income Assets Current assets Cash Marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Plant and equipment (net) Intangibles Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable Other Total current liabilities Bonds payable Total liabilities Year 2 $219,100 Total liabilities and stockholders' equity 124, 400 19,700 10,000 1,700 20, 100 175,900 $ 43,200 $ 38,500 15,800 54,300 64,300 118,600 Stockholders' equity Common stock (43,000 shares) Retained earnings Total stockholders' equity 159,000 $277,600 $ 4,800 $ 7,200 2,800 2,800 36,600 31, 100 101,600 94, 100 3,900 2,900 149,700 138, 100 106,400 106,400 21,500 0 $277,600 $244,500 Year 1 $182,800 114,900 44, 100 101, 100 17,700 9,000 1,700 16,900 146,400 $36,400 $ 34,200 16, 200 50,400 65,300 115,700 114,900…
Balance Sheet for Bearcat Hathaway, 2022 2021 2022 Cash Accounts. Receivable $5,268,485 $10,268,485 Inventory $529,062 $696,685 Current Assets $8,371,777 $13,279,842 Less $2,574,230 $2,314,672 Gross Fixed Assets $16,251,665 $20,567,330 Accum.Depreciation Total Assets $7,460,897 $10,117,819 Accounts Payable Notes. Payable Current Liabilities Calculate the net working capital in 2022. Long Termi Debt Total Liabilities, None of these options are correct $10,572,740 $5,664,675 $8,854,338 $3,946,273 Total $17,162,545 $23,729,353 Liabilities and Equity Capital Surplus Retained. Earnings 2021 2022 $1,673,992 $2,438,271 Common Net Fixed Assets $8,790,768 $10,449,511 Stock ($0.50 $1,300,000 $1,600,000 par) $1,033,110 $1,987,233 $2,707,102 $4,425,504 $9,242,830 $11,468,302 $11,949,932 $15,893,806 $1,148,120 $1,800,969 $2,764,493 $4,434,578 $17,162,545 $23,729,353
P14
Uptodate Projects Ltd has approached you to analyse and interpret their financial statements. The following amounts were extracted from the records of the company: 2019 2020 2021 R R R Turnover 200 000 220 000 250 000 Cost of sales 140 000 150 000 165 000 Profit before interest and tax 12 000 11 000 10 500 Accounts receivable 16 500 25 000 29 600 Accounts payable 13 000 14 700 17 000 Inventory 18 750 26 000 30 400 Bank/ (Overdraft) Required: 4 000 (1000) (2 000) Explain the purpose of financial statement Calculate each of the following ratios for each of the three (3) years: Accounts receivable collection period Inventory holding period Accounts payable payment period Current ratio Acid test ratio Comment on the company’s working capital management in light of the analysis undertaken in above
Assets Cash Receivables (net) Inventory PP & E (net) Patents&Licenses Goodwill Total assets Liabilities & Equity Accounts payable Short term debt Long term debt Preferred stock Common Equity Total Liabilities + Equity New Chip Corp Balance Sheet at 12/31/22 ($ in Millions) 31 45 64 215 28 19 402 53 19 179 23 128 402
Tara Co. Statement of Financial Position As at December 31, 2021 2021 2020 Cash 4,400 6,000 Accounts receivable (net) 9,400 10,600 6,040 4,000 Inventory Prepaid rent 520 1,200 64,840 48,040 - 6,400 - 8,000 960 FVTOCI Investments 800 Property, Plant and Equipment Accumulated depreciation 80.000 62,400 Accounts payable 4,095 3,700 Wages payable Interest payable 365 710 360 300 Unearned revenues 500 700 Dividends payable 560 Long term Note Payable 10,300 52,000 39,000 12,000 8,300 Common shares Retained earnings Accumulated OCI – FVTOCI Investments 9,600 180 90 80,000 62,400 Additional Information for 2021: Machinery costing $10,000 was acquired by issuing a long-term note for the full amount. Machinery with original cost of $5,500 was sold during the year. One FVTOCI investment was sold for $400 during the year. This investment's original cost was $160 and had a carrying value of $360 at the beginning of 2021. Required : Prepare the following parts of the Statement of Cash Flow for the…
Computation.
2021 2$ Cash Available-for-sale debt securities (not cash equivalents) Accounts receivable Inventory Prepaid insurance Land, buildings, and equipment Accumulated depreciation 94,025 23,000 95,000 180,000 2,850 1,280,000 (625,000) $1,049,875 2020 31,955 100,000 81,750 158,500 3,500 1,140,000 (587,000) $ 928,705 $ 163,670 32,000 90,000 Total assets Accounts payable Salaries payable Notes payable (current) Bonds payable Common stock Retained earnings 2$ 89,840 26,000 38,500 215,000 300,000 380,535 300,000 343,035 $ 928,705 ces Total liabilities and shareholders' equity $1,049,875 Additional information for 2021: (1) Sold available-for-sale debt securities costing $77,000 for $83,000. (2) Equipment costing $20,000 with a book value of $6,500 was sold for $8,250. (3) Issued 6% bonds payable at face value, $215,000. (4) Purchased new equipment for $160,000 cash. (5) Paid cash dividends of $27,500. (6) Net income was $65,000. Required: Prepare a statement of cash flows for 2021 in good form…
What is net income ?
RITTER CORPORATION Income Statement 2021 Revenue Expenses $ 860 620 Depreciation 101 Net income $ 139 Dividends $ 119 RITTER CORPORATION Balance Sheet December 31 2020 2021 Assets Cash $66 $ 87 Other current assets 176 192 Net fixed assets Total assets Liabilities and Equity Accounts payable 381 401 $ 623 $ 680 Long-term debt Stockholders' equity $ 126 $ 147 151 167 346 366 $ 680 Total liabilities and equity $623 a. What is the change in cash during 2021? b. Determine the change in net working capital in 2021. c. Determine the cash flow generated by the firm's assets during 2021. a. Change in cash b. Change in net working capital c. Cash flow from assets

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