From the given Statement of Financial Position and Income statement, solve for the following:1) Compute the FINANCIAL ratios that measure:c) Operating Activity-Accounts Receivable Turnover-Days Sales in Receivable-Inventory Turnover-Days in Inventoryd) Profitability-Earnings per Share-Return on Asset-Return on Equity-Operating Profit Margin-Net Profit Margin 2) Analyze, interpret, and draw conclusions based on the results of your computations. AYBECI COMPANYComparative Statement of Financial PositionDecember 31(in Thousand Dollars)202020192018ASSETSCurrent AssetsCash and Cash EquivalentsShort term InvestmentsTrade Receivables, net of $30.000 allowanceNote Receivable – related partyOther ReceivablesInventoryPrepaid InsuranceTotal Current AssetsNon-Current AssetProperty, Plant and EquipmentLess Accumulated DepreciationTotal non-current AssetTOTAL ASSET12,62812,000529,94918,94180.532252,5677,500914,11791.100193,230485,00012.32511,25412.000510.43521.543212,5157,5001.001,670252,5677,500815.299209.33087.260122.0701.123.740209,33075,332133,9981.048,115209.33064.034145,296960,595LIABILITIES AND SHAREHOLDERS EQUITYCurrent LiabilitiesAccounts PayableAccrued ExpenseNotes PayableLine of CreditCurrent Portion of Long Term Debt148.0002,02522,325123.00036,000331,350154,0212,50021,300145.00036.000358,821135,0002,50021.750167.00036.000362,250Total Current LiabilitiesNon-Current LiabilitiesLong Term DebtTotal Liabilities114.686446.036117,343476,164117.345479,595Shareholders' EquityOrdinary Share. $1 par valuePremium on Ordinary SharesRetained EarningsTotal Shareholders' Equity100.00050,000527.704677,704100,00050.000421.951571,951100.00050.000331.000481.000AYBECI CORPORATIONComparative Income StatementFor the year ended December 31(in Thousand Dollars)202020191.986.4561.187.652798.804556.732242.072Net SalesLess: Cost of SalesGross IncomeLess: Other Operating ExpenseOperating IncomeLess: Other ExpenseInterestOther ExpenseNet Income before Taxes| Less: Income TaxNET INCOME AFTER TAXES2.013.2251.201.000812.225562.705249.52016.3834,884228.25322.500205.75316.4532,600223.01922,300200.719

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rom the given Statement of Financial Position and Income statement, solve for the following: 1) Compute the FINANCIAL ratios that measure: c) Operating Activity -Accounts Receivable Turnover -Days Sales in Receivable -Inventory Turnover

rom the given Statement of Financial Position and Income statement, solve for the following: 1) Compute the FINANCIAL ratios that measure: c) Operating Activity -Accounts Receivable Turnover -Days Sales in Receivable -Inventory Turnover

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

From the given Statement of Financial Position and Income statement, solve for the following:

1) Compute the FINANCIAL ratios that measure:

c) Operating Activity

-Accounts Receivable Turnover

-Days Sales in Receivable

-Inventory Turnover

-Days in Inventory

d) Profitability

-Earnings per Share

-Return on Asset

-Return on Equity

-Operating Profit Margin

-Net Profit Margin

2) Analyze, interpret, and draw conclusions based on the results of your computations.

AYBECI COMPANY
Comparative Statement of Financial Position
December 31
(in Thousand Dollars)
2020
2019
2018
ASSETS
Current Assets
Cash and Cash Equivalents
Short term Investments
Trade Receivables, net of $30.000 allowance
Note Receivable – related party
Other Receivables
Inventory
Prepaid Insurance
Total Current Assets
Non-Current Asset
Property, Plant and Equipment
Less Accumulated Depreciation
Total non-current Asset
TOTAL ASSET
12,628
12,000
529,949
18,941
80.532
252,567
7,500
914,117
91.100
193,230
485,000
12.325
11,254
12.000
510.435
21.543
212,515
7,500
1.001,670
252,567
7,500
815.299
209.330
87.260
122.070
1.123.740
209,330
75,332
133,998
1.048,115
209.330
64.034
145,296
960,595
LIABILITIES AND SHAREHOLDERS EQUITY
Current Liabilities
Accounts Payable
Accrued Expense
Notes Payable
Line of Credit
Current Portion of Long Term Debt
148.000
2,025
22,325
123.000
36,000
331,350
154,021
2,500
21,300
145.000
36.000
358,821
135,000
2,500
21.750
167.000
36.000
362,250
Total Current Liabilities
Non-Current Liabilities
Long Term Debt
Total Liabilities
114.686
446.036
117,343
476,164
117.345
479,595
Shareholders' Equity
Ordinary Share. $1 par value
Premium on Ordinary Shares
Retained Earnings
Total Shareholders' Equity
100.000
50,000
527.704
677,704
100,000
50.000
421.951
571,951
100.000
50.000
331.000
481.000
AYBECI CORPORATION
Comparative Income Statement
For the year ended December 31
(in Thousand Dollars)
2020
2019
1.986.456
1.187.652
798.804
556.732
242.072
Net Sales
Less: Cost of Sales
Gross Income
Less: Other Operating Expense
Operating Income
Less: Other Expense
Interest
Other Expense
Net Income before Taxes
| Less: Income Tax
NET INCOME AFTER TAXES
2.013.225
1.201.000
812.225
562.705
249.520
16.383
4,884
228.253
22.500
205.753
16.453
2,600
223.019
22,300
200.719

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

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