The balance sheets for Monitor World Corporation and additional information are provided below.MONITOR WORLD CORPORATIONBalance SheetsDecember 31, 2024 and 2023AssetsCurrent assets:CashAccounts receivableInventoryInvestmentsLong-term assets:LandEquipmentLess: Accumulated depreciationTotal assetsLiabilities and Stockholders' EquityCurrent liabilities:Accounts payableInterest payableIncome tax payableLong-term liabilities:Notes payableStockholders' equity:Common stockRetained earningsTotal liabilities and stockholders' equityAdditional information for 2024:1. Net income is $128,400.2. Sales on account are $1,702,000.3. Cost of goods sold is $1,276,500.Complete this question by entering your answers in the tabs below.a. Receivables turnover ratiob. Inventory turnover ratioc. Current ratiod. Acid-test ratioe. Debt to equity ratio2024timestimes$176,40088,000100,0004,500%Required:1. Calculate the following risk ratios for 2024:2. When we compare two companies, can one have a higher current ratio while the other has a higher acid-test ratio?Required 1 Required 2Calculate the following risk ratios for 2024: (Round your answers to 1 decimal place.)Risk Ratios2023530,000530,000840,000720,000(478,000) (318,000)$1,260,900$1,241,500$125,00097,00085,0002,500$104,000$90,0006,50012,5008,5005,500120,000240,000750,000750,000271,900143,500$1,260,900 $1,241,500

Ratio analysis is an important financial analysis technique that helps investors in analyzing an…

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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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a. Given the following information, calculate the expected value for Firm C's EPS. Data for Firms A = and B are as follows: E(EPSA) = $5.10, and OA = $3.59; E(EPSB) $4.20, and B $2.97. Do not round intermediate calculations. Round your answer to the nearest cent. E(EPSC): $ A Firm A: EPSA Firm B: EPSB Firm C: EPSC BU Probability b. You are given that oc = $4.11. Discuss the relative riskiness of the three firms' earnings using their respective coefficients of variation. Do not round intermediate calculations. Round your answers to two decimal places. CV The most risky firm is -Select- V = 0.1 0.2 0.4 0.2 0.1 ($1.65) $1.80 $5.10 $8.40 $11.85 (1.20) 1.35 4.20 7.05 9.60 (2.54) 1.35 5.10 8.85 12.74
Betas and risk rankings Personal Finance Problem You are considering three stocks -A, B, and C- for possible inclusion in your investment portfolio. Stock A has a beta of 1.2, stock B has a beta of 1.5, and stock C has a beta of - 0.2. a. Rank these stocks from the most risky to the least risky. b. If you believed that the stock market was getting ready to experience a significant decline, which stock should you add to your portfolio? c. If you anticipated a major stock market rally, which stock would you add to your portfolio? a. Which stock is the most risky one? (Select the best answer below.) O A. Stock A O B. Stock B O C. Stock C Which stock is the least risky one? (Select the best answer below.) O A. Stock B O B. Stock A O C. Stock C b. If you felt that the stock market was getting ready to experience a significant decline, which stock should you add to your portfolio? (Select the best answer below.) b. If you felt that the stock market was getting ready to experience a…
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Required: 1. Calculate the following risk ratios for 2024: 2. When we compare two companies, can one have a higher current ratio while the other has a higher acid-test ratio?