TEST YOUR UNDERSTANDING A Review of Ratio Analysis Activity 10 ORACLE CORPORATION Eor the fiscal year ended Current ratio 5/31/97 5/31/99 1.79 5/31/98 1.74 (PAL/S) 1.70 (P/L/S) Debt ratio 0.491 0.492 0.488 (P/L/S) Return on sales 0.15 0.11 0.14 (P/L/S) Return on assets 0.18 0.14 0.18 Source: Disclosure, Inc, Compact D/SEC, 2000. 1. In the left-hand margin above, circle whether the ratio measures (P)rofitability, short-term (L)iquidity -- the ability to pay current debt, or long-term (S)ölvency - the ability to pay long-term debt. - 2. For each short-term liquidity ratio above, circle the ratio indicating the greatest ability to pay current liabilities for tho three years of information presented. This company appears to (have/ not have) the ability to pay current debt. 3. For cach long-term solvency ratio above, circle the ratio indicating the least amount of debt financing for the three years of information presented. This company relies more heavily on (debt / equity) to finance assets.

TEST YOUR UNDERSTANDING A Review of Ratio Analysis Activity 10 ORACLE CORPORATION Eor the fiscal year ended Current ratio 5/31/97 5/31/99 1.79 5/31/98 1.74 (PAL/S) 1.70 (P/L/S) Debt ratio 0.491 0.492 0.488 (P/L/S) Return on sales 0.15 0.11 0.14 (P/L/S) Return on assets 0.18 0.14 0.18 Source: Disclosure, Inc, Compact D/SEC, 2000. 1. In the left-hand margin above, circle whether the ratio measures (P)rofitability, short-term (L)iquidity -- the ability to pay current debt, or long-term (S)ölvency - the ability to pay long-term debt. - 2. For each short-term liquidity ratio above, circle the ratio indicating the greatest ability to pay current liabilities for tho three years of information presented. This company appears to (have/ not have) the ability to pay current debt. 3. For cach long-term solvency ratio above, circle the ratio indicating the least amount of debt financing for the three years of information presented. This company relies more heavily on (debt / equity) to finance assets.

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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Subject: accounting
Horizontal Analysis The comparative temporary investments and inventory balances of a company follow. Current Year Previous Year Accounts payable $55,200 $46,000 Long-term debt 46,716 68,700 Based on this information, what is the amount and percentage of increase or decrease that would be shown on a balance sheet with horizontal analysis? Amount of Change Increase/Decrease Percentage Accounts payable $fill in the blank 1 fill in the blank 3% Long-term debt $fill in the blank 4 fill in the blank 6%
Horizontal Analysis The comparative temporary investments and inventory balances of a company follow: Current Year Previous Year Accounts payable $79,360 $62,000 Long-term debt 28,046 37,900 Based on this information, what is the amount and percentage of increase or decrease that would be shown on a balance sheet with horizontal analysis? Amount of Change Increase/tcrease Percentage Accounts payable Long-term debt % %
Problem 13-2A (Static) Ratios, common-size statements, and trend percents LO P1, P2, P3 Skip to question [The following information applies to the questions displayed below.]Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements For Years Ended December 31 2021 2020 2019 Sales $ 555,000 $ 340,000 $ 278,000 Cost of goods sold 283,500 212,500 153,900 Gross profit 271,500 127,500 124,100 Selling expenses 102,900 46,920 50,800 Administrative expenses 50,668 29,920 22,800 Total expenses 153,568 76,840 73,600 Income before taxes 117,932 50,660 50,500 Income tax expense 40,800 10,370 15,670 Net income $ 77,132 $ 40,290 $ 34,830 KORBIN COMPANY Comparative Balance Sheets December 31 2021 2020 2019 Assets Current assets $ 52,390 $ 37,924 $ 51,748 Long-term investments 0 500 3,950 Plant assets, net 100,000 96,000 60,000 Total assets $ 152,390 $ 134,424 $ 115,698 Liabilities…
Changes in Various Ratios Presented below is selected information for Turner Company: Sales revenue Cost of goods sold Interest expense Income tax expense Net income Cash flow from operating activities Capital expenditures Accounts receivable (net), December 31 Inventory, December 31 Stockholders' equity, December 31 Total assets, December 31 2019 2018 $950,000 $850,000 575,000 545,000 20,000 20,000 27,000 30,000 65,000 55,000 70,000 60,000 45,000 45,000 126,000 120,000 196,000 160,000 450,000 400,000 750,000 675,000 Required Calculate the following ratios for 2019. The 2018 results are given for comparative purposes. Round answers to one decimal place. Use 365 days in a year. 2018 35.9% 8.3% 6.5% 1. Gross profit percentage 2. Return on assets 3. Return on sales 4. Return on common stockholders' equity (no preferred stock was outstanding) 5. Accounts receivable turnover 6. Average collection period 13.9% 8.0 45.6 days 2019 0 % 0 % 0 % 0 % 0 0 days
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Problem 17-2A Ratios, common-size statements, and trend percents LO P1, P2, P3 Skip to question [The following information applies to the questions displayed below.] Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements For Years Ended December 31, 2019, 2018, and 2017 2019 2018 2017 Sales $ 459,716 $ 352,180 $ 244,400 Cost of goods sold 276,749 223,282 156,416 Gross profit 182,967 128,898 87,984 Selling expenses 65,280 48,601 32,261 Administrative expenses 41,374 30,992 20,285 Total expenses 106,654 79,593 52,546 Income before taxes 76,313 49,305 35,438 Income tax expense 14,194 10,108 7,194 Net income $ 62,119 $ 39,197 $ 28,244 KORBIN COMPANY Comparative Balance Sheets December 31, 2019, 2018, and 2017 2019 2018 2017 Assets Current assets $ 58,718 $ 39,300…
May I ask for a solution and explanation to the problem for a better understanding. Thank you! 9. Using carrot corp., what is the debt-to-equity ratio? a. 30.77 : 1 b. 31.60 : 1 c. 30.50 : 1 d. 31.20 : 1