Questions:1. Make a comparison for each company based on computed ratio. 2. What is your financial analysis on their overall performance? A. Income StatementRosNet IncomeSalesInventory TurnoverCost Of Good SoldsInventoryB. Current RatioCurrent AssetsCurrent LiabilitiesDebt to EquityLong termEquityC. Combine IS & BLQuick RatioCurrent AssetInventoryCurrent LiabilitiesTotal Asset TurnoverSalesTotal AssetNet IncomeTotal AssetROAAxtel Company3,11636,22719,9253,22012,8291,82411,6782,1107,11214,2246,00214,61312,829-2,5731,82411,678-3,2202,11036,22722,7253,11622,7250.096.197.035.530.500.415.624.01.590.14Northern Manufacturing2,30523,5600.1011,5066,4701.7811,9302,7104.4013,9702,4305.7511,3203,0003.7712,3355,1052.4211,930-5,1802,71013,970-6,4702,43022,56019,8702,30519,8702.493.091.140.12

The performance of the two companies can be evaluated using the ratio. The ratio provides a view of…

Answered: Questions: 1. Make a comparison for…

Questions: 1. Make a comparison for each company based on computed ratio. 2. What is your financial analysis on their overall performance?

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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Question

Questions:

1. Make a comparison for each company based on computed ratio.

2. What is your financial analysis on their overall performance?

A. Income Statement
Ros
Net Income
Sales
Inventory Turnover
Cost Of Good Solds
Inventory
B. Current Ratio
Current Assets
Current Liabilities
Debt to Equity
Long term
Equity
C. Combine IS & BL
Quick Ratio
Current Asset
Inventory
Current Liabilities
Total Asset Turnover
Sales
Total Asset
Net Income
Total Asset
ROA
Axtel Company
3,116
36,227
19,925
3,220
12,829
1,824
11,678
2,110
7,112
14,224
6,002
14,613
12,829-2,573
1,824
11,678-3,220
2,110
36,227
22,725
3,116
22,725
0.09
6.19
7.03
5.53
0.50
0.41
5.62
4.0
1.59
0.14
Northern Manufacturing
2,305
23,560
0.10
11,506
6,470
1.78
11,930
2,710
4.40
13,970
2,430
5.75
11,320
3,000
3.77
12,335
5,105
2.42
11,930-5,180
2,710
13,970-6,470
2,430
22,560
19,870
2,305
19,870
2.49
3.09
1.14
0.12

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