The following table represents the current assets and current liabilities of AISuroor Company and Al Bayan Company for the year 2015. Comment on the liquidity of both companies by using two relevant ratios. Explain your answer. AI Suroor Company AI Bayan Company Current assets RO 800,000 RO 500,000 Current liabilities RO 400,000 RO 100,000

The following table represents the current assets and current liabilities of AISuroor Company and Al Bayan Company for the year 2015. Comment on the liquidity of both companies by using two relevant ratios. Explain your answer. AI Suroor Company AI Bayan Company Current assets RO 800,000 RO 500,000 Current liabilities RO 400,000 RO 100,000

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

Southern Style Realty has total assets of $485,390, net fixed assets of $250,000, current liabilities of $23,456, and long-term liabilities of $148,000. What is the total debt ratio? Can you provide the formula?
Epsilon Golf Company's balance sheet at December 31, 2021 is as follows: (Click the icon to view the balance sheet.) Requirement 1. Perform a vertical analysis of Epsilon Golf Company's balance sheet to determine the component percentages of its assets, liabilities, and stockholders' equity. (Round the percentages to the nearest hundredth percent, X.XX%. Do not enter the % symbol in any of the input fields.) Assets Total current assets Property, plant, and equipment, net Other assets Total assets Liabilities Total current liabilities December 31, 2021 Long-term debt Total liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity $ $ $ $ Amount 42,465 203,775 38,760 285,000 46,455 107,730 154,185 130,815 285,000 % of total % % % % % % % % %
Argos financial statements indicate that Net Income 5,536, ROE is 15% and the Equity Multiplier is 1.48, calculate their Assets
N1. Account
Using the following selected items from the comparative balance sheet of Oriole Products.Determine the horizontal analysis. (Round percentages to 2 decimal places, e.g. 12.21%. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) ORIOLEPRODUCTSComparative Balance SheetDecember 31 2014 2013 Horizontal analysis Amount Percentage Amount Percentage Current assets $110,880 enter percentages % $128,216 enter percentages % Long-term assets 174,240 enter percentages % 117,304 enter percentages % Total assets 3,168,000 enter percentages % 2,728,000 enter percentages % Determine the vertical analysis. (Round percentages to 1 decimal place, e.g. 12.2%.) ORIOLEPRODUCTSComparative Balance SheetDecember 31 2014 2013 Vertical analysis Amount Percentage Amount Percentage Current assets $110,880…
Refer to the statements for Google. For the year ended December 31, 2017, what was its debt-to-equity ratio? What does this ratio tell us?
Calculate the following ratios for F. Raser for the year ended 31 May 2016. State clearly the formulae used for each ratio. Return on capital employed Gross profit percentage Net profit percentage Quick/Acid test ratio Receivables collection period Earnings per share Using the additional information given and the ratios you calculated in part (a), write a brief report on the financial performance of F. Raser. Indicate in your report what additional information might be useful to help interpret the ratios. © List two factors F. Raser should consider in deciding whether to raise finance by issuing loan notes rather than issuing shares
(a) Calculate the asset tumover ratio, Asset tumover ratio________ 1) eTextbook 2) and Media List of Accounts
Use the following information to answer questions 1 - 8 Consider the following abbreviated financial statements for Xinghua: XINGHUA 2014 and 2015 Partial Balance Sheets Assets Liabilities and Owners Equity 2014 2015 2014 2015 Current assets $ 924 $ 1,002 Current liabilities $ 370 $ 428 Net fixed assets 3,917 4,556 Long-term debt 2, 006 2, 142 Equity 2,465 2,988 XINGHUA 2015 Income Statement Sales $ 11,295 Costs 5,535 Depreciation 1,020 Interest paid 180 The tax rate is 35%. Long term debt trades at 128% of par. The firm has 500 shares outstanding. Free Cash Flow to the Firm and the Free Cash Flow to Equity are both expected to grow at 2% forever. The weighted average cost of capital is 16%. The cost of equity is 24%.1. What is the change in net working capital for 2015? $ 2. What is the change in gross fixed assets, i. e. capital expenditures, for 2015? $_ What is the Net Income for 2015? $ 3. 4. What is the Free Cash Flow to the Firm for 2015? $ What is the Value of the Firm…
You are required to calculate:1. Liquidity ratios 2. Solvency rations 3. Profitability ratios For the selected companies and shortly write your comments and findings.
Comparative balance sheets for Hamilton Company are presented below. Hamilton Company Comparative Balance Sheet Decemebr 31 Assets 2017 2016 Cash 78000 12000 Accoutns Receivable 93000 76000 Inventory 180000 189000 Land 75000 100000 Equipemnt 250000 210000 Accu Dep - Equipment (66,000) (42,000) Total 610000 545000 Liability and Equity Accounts Payable 34000 47000 Bonds Payable 150000 200000 Common Stock ($1 Par ) 214000 164000 Retained Earnings 212000 134000 Total 610000 545000 Additional information: 1. Net income for 2017 was $134000 2. Cash dividends of $65,000 were declared and paid. 3. Bonds payable amounting to $50,000 were redeemed for cash $50,000.…
Flynn Plastics Company reports the following data in its September 30, 2015, financial statements: Gross sales $225 000 Current assets $50 000 Long-term assets $130 000 Current liabilities $33 000 Long-term liabilities $52 000 Net income $11 250 (a) Compute the owners’ equity. (b) Compute the current ratio. (c) Compute the debt-to-equity ratio.