Question 6- fin ancial ratiosFor each of the following scenarios, compute the financial ratios and interpret their meanings.(a)>Based on the following information related to Tim Company, compute its acid-test ratio and-interpret its meaning. →Inventories230,500Accounts receivable124,520Prepaid expenses96,100Short-term investments150,000Cash$9,500Total current Assets$610,620Accounts payableNote payable64,00057,900Unearned revenue$90,000Total current liabilities$211.900(b)>Based on the following information related to Quintin Incorporated, compute its inventoryturnover and interpret its meaning.→ →Purchase inventory during the year3,600,000Cost of goods soldEnding Inventory4,320,1001,987,600.-分頁符號。

Ratio analysis means where different ratio of various years of years companies has been compared and…

Question 6- financial ratios For each of the following scenarios, compute the financial ratios and interpret their meanings. (a)•Based on the following information related to Tim Company, compute its acid-test ratio and interpret its meaning. Inventories 230,500 124,520 96,100 150,000 Accounts receivable Prepaid expenses Short-term investments Cash $9,500 Total current Assets $610,620 Accounts payable Note payable 64,000 57,900 Unearned revenue $90,000 Total current liabilities $211.900 (b)>B ased on the following information related to Quintin Incorporated, compute its inventory turnover and interpret its meaning.- Purchase inventory during the year Cost of goods sold Ending Inventory 3,600,000 4,320,100 1,987,600 .分頁符號。

Question 6- financial ratios For each of the following scenarios, compute the financial ratios and interpret their meanings. (a)•Based on the following information related to Tim Company, compute its acid-test ratio and interpret its meaning. Inventories 230,500 124,520 96,100 150,000 Accounts receivable Prepaid expenses Short-term investments Cash $9,500 Total current Assets $610,620 Accounts payable Note payable 64,000 57,900 Unearned revenue $90,000 Total current liabilities $211.900 (b)>B ased on the following information related to Quintin Incorporated, compute its inventory turnover and interpret its meaning.- Purchase inventory during the year Cost of goods sold Ending Inventory 3,600,000 4,320,100 1,987,600 .分頁符號。

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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At the beginning of the year, Addison Company's assets are $234,000 and its equity is $175,500. During the year, assets increase $80,000 and liabilities increase $57,000. What is the equity at year-end?b. Office Store Company has assets equal to $295,000 and liabilities equal to $269,000 at year-end. What is the equity for Office Store Company at year-end?c. At the beginning of the year, Quaker Company's liabilities equal $51,000. During the year, assets increase by $60,000, and at year-end assets equal $190,000. Liabilities decrease $14,000 during the year. What are the beginning and ending amounts of equity?
b. What is the ratio of real assets to total assets for nonfinancial firms in the following table? (Round your answer to 4 decimal places.) $ Billion Liabilities and Net Worth Liabilities Bonds and mortgages Bank loans $ 5,364 758 1,338 Other loans Trade debt 1,738 Other 4,608 $13,806 Assets Real assets Equipment and software Real estate Inventories Total real assets Financial assets Deposits and cash Marketable securities Trade and consumer credit Other Total financial assets Total $ Billion % Total $ 4,402 16.4% 36.3 9,749 1,734 6.5 $15,885 59.1% Ratio for nonfinancial firms $ 677 2.5% 1,056 3.9 2,282 8.5 6,968 25.9 $10,983 40.9% $26,868 100.0% Total liabilities Net worth $13,062 $26,868 % Total 20.0% 2.8 5.0 6.5 17.2 51.4% 48.6% 100.0% Balance sheet of U.S. nonfinancial corporations Note: Column sums may differ from total because of rounding error. Source: Flow of Funds Accounts of the United States, Board of Governors of the Federal Reserve System, September 2018.
36 Ratio Analysis - Explain how the following ratios are calculated and what the ratio indicates. Include how these ratios provide useful information related to accounting decision making topics such as efficiency (collecting amounts owed to the firm, using the assets well, getting items to market, etc.), liquidity (ability to pay current debts), solvency (ability to pay long term or all debts) Asset Turnover Return on Assets Current Ratio Accounts Receivable Turnover Average Collection Period Debt Ratio Days’ sales in Inventory Gross Profit Percentage Return on Sales Ratio
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Privett Company Accounts payable Accounts receivable Accrued liabilities Cash $34,824 71,366 6,577 17,107 41,282 80,242 119,433 74,290 32,322 21,034 699,355 2,476 Based on the data for Privett Company, what is the quick ratio, rounded to one decimal point? Oa. 0.8 Ob. 17 Oc. 1.9 Od. 3.3 Intangible assets Inventory Long-term investments Long-term liabilities Marketable securities Notes payable (short-term) Property, plant, and equipment Prepaid expenses 4 Previ
KINDLY ANSWER PARTS IV & V FOLLOWED BY PART B.i,ii,iii
Question Content Area Use the information provided for Harding Company to answer the question that follow. Harding Company Accounts payable $33,234 Accounts receivable 67,995 Accrued liabilities 6,510 Cash 22,738 Intangible assets 35,347 Inventory 83,390 Long-term investments 101,069 Long-term liabilities 79,156 Notes payable (short-term) 27,161 Property, plant, and equipment 689,074 Prepaid expenses 2,037 Temporary investments 30,842 Based on the data for Harding Company, what is the quick ratio (rounded to one decimal place)? a.3.1 b.0.8 c.1.8 d.15.4
Question Content Area The following information pertains to Tanzi Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets Cash and short-term investments $41,912 Accounts receivable (net) 29,707 Inventory 28,654 Property, plant and equipment 293,074 Total Assets $393,347 Liabilities and Stockholders' Equity Current liabilities $58,253 Long-term liabilities 97,633 Stockholders' equity-common 237,461 Total Liabilities and stockholders' equity $393,347 Income Statement Sales $80,900 Cost of goods sold 36,405 Gross margin $44,495 Operating expenses 25,209 Net income $19,286 Number of shares of common stock 6,546 Market price of common stock $35 What is the current ratio for this company? Round your answer to two decimal places. Select the correct answer. 1.23 2.22 0.72 1.72
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Calculate Quick Ratio: AKA the Acid Test
calculate the quick assets (in $) and acid test ratio for the given company. round ratios to the nearest hundredth.
RATIO ANALYSIS. Debt Ratio Activity 6 · Understand the information provided by the debt ratio. · Identify the expected range and whether an increasing or decreasing trend is preferred. Purpose: The debt ratio compares total liabilities to total assets. This ratio measures the proportion of assets financed by debt. It is a measure of long-term solvency. Total liabilities DEBT RATI0 = Total assets JOHNSON & CITIGROUP 12/31/99 HEWLETT- PACKARD 10/3 1/99 JOHNSON 1/03/99 WAL-MART 1/31/99 ($ in 000s) Assets $716,937,000 $35,297,000 $26,211,000 $49,996,000 Liabilities 667,251,000 17,002,000 12,621.000 28,884,000 Stockholders' Equity $ 49,686,000 $18,295,000 $13,590,000 $21,112,000 Source: Disclosure, Inc, Compact D/SEC, 2000. 1. For each-company listed above, compute the debt ratio. Record your results below. Debt ratio: 0.93 2. The debt ratios computed above are primarily in the ranġe (less than 0,40 / 0.40 through 0.70 / over 0.70): 3. % of Wal-Mart's assets are financed by debt. 4.…