REQUIREMENTS1. Recommendation for company A2. Conclusion for company A COMPANY ARATIO20192018Liquidity1 Current Ratio0.671.072 Quick Ratio0.531.26Profitability3 ROE4 ROA5 GPM6 OPM7 NPMLeverage8 Debt Ratio9 Debt to Equity Ratio10 Time Interest Earned Ratio12.29% 15.60%3.43% 5.08%17.25% 18.78%3.90% 6.16%3.77% 4.99%72.08% 67.45%2.582.073.844.81Efficiency11 A/R Turnover Ratio12 Average Collection Period13 Inventory Turnover Ratio14 Average Age of Inventory15 Accounts Payable Ratio16 Average Age of Payable17 Operating Cycle18 Cash Conversion Cycle19 Total Asset Turnover Ratio20 Fixed Asset Turnover Ratio31.00 34.12121116.00 16.9322.50 21.274.744.9175.91 73.3634.11 31.82-41.80 -41.540.991.255.636.32

Liquidity ratio : These ratios is calculated for ascertaining the ability of paying the short…

Answered: REQUIREMENTS 1. Recommendation for…

Business

Accounting

REQUIREMENTS 1. Recommendation for company A 2. Conclusion for company A

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: 9. Consider Special Reports. What type involves a "different basis of accounting"? a.…

Q: not a part of administrative control

A: Option b is wrong because it is a part of administrative control. Option c is wrong because it is a…

Q: GRI Reporting Framework disclose outcomes and results occurred within the reporting period EXCEPT…

A: GRI reporting framework is global reporting initiative which are independent standards at…

Q: ISA 250 paragraph 10

A: ISA refers to International Standards on Auditing.

Q: differences between the organizations in the text boxes inside the circle for each organization and…

A: Answer : Both GASB and FASB have some similarities and differences, as the purpose of both is the…

Q: Classify the following as tasks performed by the eight trs, frs and mrs

A: Within the accounting industry, there are three employment roles or positions: TRS, FRS, and MRS.…

Q: Branding may include O a. the brand name. O b. the brand mark. O c. the trade mark. d. All of the…

A: Brand and its features What does branding include

Q: NZ IFRS 15 identifies the seven important elements of a contract with a customer that need to be…

A: NZ IFRS 15 helps businesses figure out when and how to record the money they earn from selling…

Q: Which method you would advise the management to use and why?

A: Inventory refers to finished goods ready for sale or the goods which are used in production process.…

Q: _____________ is devoted to providing information to the external users

A: External users are investors, creditors and other third parties who review the financials of the…

Q: Which of the following are the example of appropriate subject matter related to assurance…

A: the following are the example of appropriate subject matter related to assurance engagement ii.…

Q: Management Accounting areas which are normally related to the accounting and finance functions may…

A: Management Accounting areas include: Financial strategy Cost management Project management Internal…

Q: 8- Which among the following is a tool of management accounting? a. Risk analysis b. All the…

A: Management accounting refers to the managing of the operations of the business. It is basically…

Q: None

A: The correct order for preparing departmental income statements is:Allocate direct expenses: These…

Q: Identify three ways that accounting systems help align thegoals of employees and the goals of the…

A: Accounting information: Accounting information is used in business measurement, performance…

Q: Office memorandum and office orders explaination in detail

A: A memorandum can be explained as an official decision taken and which is required to be displayed…

Q: The accountability instrument refers to the answer choices as below, except A. fiskal…

A: Accountability includes accepting responsibility for one's own actions. It imply a desire to be open…

Q: are the Enhancing Qualities of the Qualitative Characteristics of accounting information? Answers:…

A: To be useful to a user, accounting information should include the following features:Prepared…

Q: ISA 250 paragraph 10 cover the aspects of a. Law and regulation governing accounting and auditing b.…

A: The question is multiple choice question Required Choose the Correct Option.

Q: organization chart is

A: Organizational chart represents it's structure and defines the relationship between each executives…

Q: 21-The conceptual framework of Accounting is developed by. a. International Accounting Standards…

A: The Accounting Conceptual Framework is a set of accounting objectives and fundamentals, developed by…

Q: erecognition of Provision PAS 37

A: Definition IAS 37 Provisions, Contingent Liabilities and Contingent Assets outlines the accounting…

Q: Day-to-day decision making is most common to which of the following activities managers are expected…

A: Manager has to decide or make various strategy and decision to achieve the objective of the…

Q: Which of the following element is part of the controlling function? O a. Coordinating the functions…

Q: 1. Job specification of external auditor

A: “Since you have asked multiple question. We will solve the first question for you. If you want any…

Q: function is not contained in the management accounting department? a. Cost accounting b. Financial…

A: In organization it is important because they are the department which are concern with qualitative…

Q: _______ can be defined as compelling events to go according to plan. A. Budgeting B. Management…

A: Compelling events are events that forces to take some decision.

Q: require independence? I. Management Consulting II. Tax Consulting III, Audit IV. Review Group…

A: The different field of study help us to gain knowledge to different areas and many fields are…

Q: Expenditure Cycle Controls include: Select one: O a. Transactions authorization O b. Set Up Accounts…

A: An expenditure cycle refers to an work relating to payment for goods ans and services and their…

Q: ------------as defined by the GASB is based on the fiscal period that benefits from a particular…

A: Classification by character as defined by the GASB is based on the fiscal period that benefits from…

Q: List the directors’ duties with regard to the going concern basis.

A: The concept of a going concern is a fundamental accounting principle. It implies that a company will…

Q: There are 3 basic principles in developing an accounting information system, t

A: Accounting information system: the accounting information system is a system created by a business…

Q: Management accountants prepares various reports to different levels of management for providing…

A: The operating and middle level management organization is an important part of organization for the…

Q: accounting c. Cost accounting d. Management accounting

A: The correct answer is D Management accounting.

Q: Identify which characteristics will assist the company in relating similar information of the same…

A: The process by which financial transactions of the business are recorded and communicated with the…

Q: REQUIRED [1] Review Exhibits 1 and 2; audit memos G-3 and G-4; and audit schedules G-5, G-6 and…

A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

Q: 11-Select the cost accounting scope that helps in better strategic decisions. a. Cost accounting b.…

A: To make a better strategic decision, the management needs in-depth information of the cost incurred…

Q: The Institute of Management Accountants issues which certification? OA. CFE B. O C. CIA O D. CPA CMA

A: Institute of management accounting is central body in United states of America and provides and…

Q: V Differentiate General Ledger from a Subsidiary Ledger Differentiate General Journal from a General…

A: Accounting system involves many types of books which are prepared to record the financial…

Question

REQUIREMENTS

1. Recommendation for company A

2. Conclusion for company A

COMPANY A
RATIO
2019
2018
Liquidity
1 Current Ratio
0.67
1.07
2 Quick Ratio
0.53
1.26
Profitability
3 ROE
4 ROA
5 GPM
6 OPM
7 NPM
Leverage
8 Debt Ratio
9 Debt to Equity Ratio
10 Time Interest Earned Ratio
12.29% 15.60%
3.43% 5.08%
17.25% 18.78%
3.90% 6.16%
3.77% 4.99%
72.08% 67.45%
2.58
2.07
3.84
4.81
Efficiency
11 A/R Turnover Ratio
12 Average Collection Period
13 Inventory Turnover Ratio
14 Average Age of Inventory
15 Accounts Payable Ratio
16 Average Age of Payable
17 Operating Cycle
18 Cash Conversion Cycle
19 Total Asset Turnover Ratio
20 Fixed Asset Turnover Ratio
31.00 34.12
12
11
16.00 16.93
22.50 21.27
4.74
4.91
75.91 73.36
34.11 31.82
-41.80 -41.54
0.99
1.25
5.63
6.32

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Evaluate three accounting system controls.
Accounting policies, methods, and estimates used in preparing fi nancial statements aremost likely found in the:B . management commentary.
Discuss 3 objectives of an exit conference of internal auditor.
The management accounting can be stated an extension of Responsibility Accounting O a . False O b . True
Which General Staff member negotiates and monitors contracts, maintains documentation for reimbursement, and oversees timekeeping for incident personnel? A.Finance/Administration Section Chief B. Operations Section Chief C. Logistics Section Chief D. Planning Section Chief.
______________ refers to things an organization needs to perform the required tasks. a. Activities b. Resources c. Processes d. None of the options listed
The theoretical principles helps in the _____________. a. Working of IASB b. Evaluation of standard which are in existence c. Formation of rules of accounting d. Discarding the existing standards
"Generally accepted accounting principles (GAAP) assist the development of management accounting systems." Do you agree? Explain. Question content area bottom Part 1 A. No. Although GAAP applies to internal accounting reports, managers rarely use it to develop management accounting systems. B. Yes. GAAP applies only to internal accounting reports. Therefore, managers must develop management accounting systems to comply with GAAP. C. No. GAAP applies to financial reporting for external users. Internal accounting reports are not restricted by GAAP. D. Yes. GAAP applies to internal accounting reports as well as financial reporting for external users. Managers must use GAAP in the development of all accounting systems.
Oo.191. Subject : - Account