The following is a table of liquidity ratio calculated for an ice-cream company for two years. Analyze the table, then answer the questions below. Chapter 2- Liquidity Ratios 2021 2020 Working Capital | 473,150,109.00 305,962,202.00 Current Assets Current Liabilities 249,660,432.00 232,327,584.00 223,489,677.00 73,634,618.00 Acid Test ( or Quick) ratio Quick Assets 310,797,917.00 187,407,896.00 Quick Assets/ Current Liabilities Current Liabilities 249,660,432.00 232,327,584.00 1.24 0.81 Current Ratio Current Assets 473,150,109.00 305,962,202.00 Current Assets/Current Liabilities Current Liabilities 249,660,432.00 232,327,584.00 1.90 1.32 Average payment Period Accounts Payable 214,491,486.00 185,346,512.00 Operating Revenue /365 Accounts Payable/Average Purchases Per Day 3,411,094.33 3,180,129.39 62.88 58.28 Cash on Hand Days Cash on Hand, Short Term Sources Cash on Hand /(Operating Expenses-Non-cash Expenses)/365 217,283,548.00 129,196,815.00 Operating Expenses 488,512,961.00 463,624,255.00 201.55 119.45 puestions 1. Analyse the above Ratio Analysis- Liquidity Ratios 2. According to the data, is the company seen as profitable? Why? 3. According to the data, does is seem like the company can pay off its debts? Why?

The following is a table of liquidity ratio calculated for an ice-cream company for two years. Analyze the table, then answer the questions below. Chapter 2- Liquidity Ratios 2021 2020 Working Capital | 473,150,109.00 305,962,202.00 Current Assets Current Liabilities 249,660,432.00 232,327,584.00 223,489,677.00 73,634,618.00 Acid Test ( or Quick) ratio Quick Assets 310,797,917.00 187,407,896.00 Quick Assets/ Current Liabilities Current Liabilities 249,660,432.00 232,327,584.00 1.24 0.81 Current Ratio Current Assets 473,150,109.00 305,962,202.00 Current Assets/Current Liabilities Current Liabilities 249,660,432.00 232,327,584.00 1.90 1.32 Average payment Period Accounts Payable 214,491,486.00 185,346,512.00 Operating Revenue /365 Accounts Payable/Average Purchases Per Day 3,411,094.33 3,180,129.39 62.88 58.28 Cash on Hand Days Cash on Hand, Short Term Sources Cash on Hand /(Operating Expenses-Non-cash Expenses)/365 217,283,548.00 129,196,815.00 Operating Expenses 488,512,961.00 463,624,255.00 201.55 119.45 puestions 1. Analyse the above Ratio Analysis- Liquidity Ratios 2. According to the data, is the company seen as profitable? Why? 3. According to the data, does is seem like the company can pay off its debts? Why?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Examine the selected data over the 5-year period as shown in the table below for Dumbledore Ltd. Item Sales Cost of sales EBIT Interest NPAT Current assets Total assets current liabilities Total liabilities Equity Gross margin Interest coverage Current ratio 2021 $m 286.41 180.03 51.18 37.07 35.13 43.85 226.18 55.99 98.99 127.19 0.37 1.38 0.78 Year 2020 $m 280.80 166.69 51.08 33.70 35.10 43.20 221.75 53.58 91.66 130.09 0.41 1.52 0.81 2019 $m 275.29 154.35 50.98 30.64 35.06 42.56 217.40 51.27 84.87 132.53 0.44 1.66 0.89 2018 $m 269.89 142.91 50.88 27.85 35.03 41.93 213.13 49.06 78.58 134.56 0.47 1.83 U.OJ 2017 $m 264.60 134.19 49.88 25.32 34.51 41.31 206.93 47.40 74.48 132.44 0.49 1.97 0.87 2016 $m 252.00 126.00 48.90 24.00 34.00 40.70 200.90 45.80 70.60 130.30 0.50 2.04 0.89
Current Attempt in Progress Suppose McDonald's 2025 financial statements contain the following selected data (in millions). Current assets Total assets Current liabilities Total liabilities (a1) a. b. C. $3,330.0 Compute the following values. d. 30,230.0 3,000.0 15,719.6 Interest expense Income taxes Net income $480.0 1,938.0 4,542.0 Working capital. (Round to 1 decimal place in millions, e.g. 5,275.5.) Current ratio. (Round to 2 decimal places, e.g. 6.25:1.) Debt to assets ratio. (Round to O decimal places, e.g. 62%.) Times interest earned. (Round to 2 decimal places, e.g. 6.25.) $ millions :1 % times
Problem 17-2A (Algo) Ratios, common-size statements, and trend percer [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 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income Assets Current assets Long-term investments Plant assets, net Total assets Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings Total liabilities and equity 2021 $546,242 328,838 217,404 77,566 49,162 126,728 90,676 16,866 $ 73,810 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income KORBIN COMPANY Comparative Balance Sheets December 31 2020 $ 418,466 263,634 2021 % 154,832 57,748 36,825 94,573 60, 259 12,353 $ 47,906 % $61,141 0 113,547…
The following income statement and balance sheets for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2021 Net sales Cost of goods sold Gross profit Expenses: Operating expenses. Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds $852,000 27,000 7,400 12,000 42,000 $3,006,000 1,944,000 1,062,000 940, 400 $ 121,600 VIRTUAL GAMING SYSTEMS Land Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable. Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Balance Sheets December 31 2021 $180,000 75,000 99,000 11,400 99,000 204,000 264,000 (63,000) $869,400 $ 60,000 4,800 12,000 279,000 294,000 219,600 2020 $138,000 54,000 129,000…
A comparative balance sheet for Sunland Corporation is presented as follows. December 31 Assets 2020 2019 Cash $ 72,900 $ 22,000 Accounts receivable 84,190 68,290 Inventory 182,190 191,290 Land 73,190 112,290 Equipment 262,190 202,290 Accumulated Depreciation-Equipment (71,190 ) (44,290 ) Total $603,470 $551,870 Liabilities and Stockholders' Equity Accounts payable $ 36,190 $ 49,290 Bonds payable 150,000 200,000 Common stock ($1 par) 214,000 164,000 Retained earnings 203,280 138,580 Total $603,470 $551,870 Additional information: 1. Net income for 2020 was $129,380. No gains or losses were recorded in 2020. 2. Cash dividends of $64,680 were declared and paid. 3. Bonds payable amounting to $50,000 were retired through issuance of common stock. Prepare a statement of cash flows for 2020…
8. Using the following Balance Sheet summary information, for the two years presented calculate: A. working capital B. current ratio 12/31/2018 12/31/2019 Current assets $101,600 33,650 $97,350 32,800 Current liabilities
Condensed financial data of Whispering Company for 2020 and 2019 are presented below. WHISPERING COMPANYCOMPARATIVE BALANCE SHEETAS OF DECEMBER 31, 2020 AND 2019 2020 2019 Cash $1,830 $1,130 Receivables 1,770 1,290 Inventory 1,620 1,920 Plant assets 1,940 1,680 Accumulated depreciation (1,190 ) (1,170 ) Long-term investments (held-to-maturity) 1,300 1,410 $7,270 $6,260 Accounts payable $1,220 $910 Accrued liabilities 210 260 Bonds payable 1,420 1,530 Common stock 1,890 1,710 Retained earnings 2,530 1,850 $7,270 $6,260 WHISPERING COMPANYINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $7,100 Cost of goods sold 4,760 Gross margin 2,340 Selling and administrative expenses 930 Income from…
None
Calculate the earnings per share (average of 420,000 shares outstanding for the year) for 2020. (Round answer to 2 decimal places, e.g. 2.55.) Earning per share $enter the earning per share in dollars rounded to 2 decimal places per share Matthias Medical manufactures hospital beds and other institutional furniture. The company’s comparative balance sheet and income statement for 2019 and 2020 follow. Matthias MedicalComparative Balance SheetAs of December 31 2020 2019 Assets Current assets Cash $397,220 $417,400 Accounts receivable, net 906,800 776,400 Inventory 743,000 681,000 Other current assets 381,300 247,000 Total current assets 2,428,320 2,121,800 Property, plant, & equipment, net 8,678,000 8,440,100 Total assets $11,106,320 $10,561,900 Liabilities and Stockholders’ Equity Current liabilities $2,934,700…
FILLING IN THE RATIOS .. THE LEFT SIDE IS 2019 THE RIGHT SIDE IS 2020 IN THE IMAGE. Jergan CorporationBalance SheetsDecember 31 2020 2019 2018 Cash $ 30,800 $ 17,600 $ 18,700 Accounts receivable (net) 50,500 44,200 47,100 Other current assets 89,600 94,900 63,900 Investments 55,300 71,000 45,100 Plant and equipment (net) 500,500 370,000 358,500 $726,700 $597,700 $533,300 Current liabilities $85,500 $79,800 $69,400 Long-term debt 144,300 84,100 50,300 Common stock, $10 par 348,000 316,000 304,000 Retained earnings 148,900 117,800 109,600 $726,700 $597,700 $533,300 Jergan CorporationIncome StatementFor the Years Ended December 31 2020 2019 Sales revenue $738,000 $605,500 Less: Sales returns and allowances 39,100 29,900 Net sales 698,900…
Net working capital, working capital balances, and the current ratio Praxis Corporation’s Chief Financial Officer (CFO) has decided to take a closer look at the firm’s short-term assets and liabilities. Praxis’s balance sheet follows: Praxis Corporation (Praxis) Balance Sheet Cash $1,700,000 Accounts payable $4,080,000 Accounts receivable $5,950,000 Accruals $2,550,000 Inventory $9,350,000 Notes payable $3,570,000 Total current assets $17,000,000 Total current liabilities $10,200,000 Long-term debt $15,300,000 Total debt $25,500,000 Common equity $5,100,000 Net plant and equipment $25,500,000 Retained earnings $11,900,000 Total equity $17,000,000 Total assets $42,500,000 Total liabilities and equity $42,500,000 The value of Praxis’s net working capital is_____________. And, Praxis’s current ratio is_____________. Assume that Praxis Corporation decides to acquire an additional…
Can you show me how to solve? Suppose these selected condensed data are taken from recent balance sheets of Bob Evans Farms (in thousands). 2022 2021 Cash $13,900 $9,900 Accounts receivable 23,300 19,900 Inventory 31,400 30,800 Other current assets 12,500 11,909 Total current assets $81,100 $72,509 Total current liabilities $252,500 $311,100 Compute the current ratio for each year. (Round answers to 2 decimal places, e.g. 2.12.) 2022 2021 Current ratio: enter the current ratio for year 2017 rounded to 2 demical places :1 enter the current ratio for year 2016 rounded to 2 demical places :1