If now the question companies like Lazada, shopee, tik tok how answer? The table below shows the ratios for three companies: airline,discount clothing store, accounting firm.COMPANY123Debt-equity0.21.20.7Inventory Turnover12.00.3Current Ratio2.51.51.3Sales/Total Assets4.01.77.0- Total Asset TurnoverSales/Receivables40.012.37.2AR TurnoverInterpret the ratios in the table to identify the three (3) firms and briefly discussyour reasons using the following format:Company (Number) is theReason:

If we consider Lazada, Shopee, and TikTok, the interpretation can be approached with typical…

Answered: The table below shows the ratios for…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.1E

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Similar questions

find one financial report for a company listed in bursa malaysia and find CURRENT RATIO,QUICK RATIO ,NET PROFIT MARGIN,RETURN ON ASSSET,INVENTORY TURNOVER,RECIEVABLE TURNOVER,DEBT RATIO,DEBT TO EQUITY
The table below shows the ratios for three companies: airline, discount clothing store, accounting firm. COMPANY 1 2 3 Debt-equity 0.2 1.2 0.7 Inventory Turnover 12.0 0.3 Current Ratio 2.5 1.5 1.3 Sales/Total Assets 4.0 1.7 7.0 Sales/Receivables 40.0 12.3 7.2 Interpret the ratios in the table to identify the three (3) firms and briefly discuss your reasons using the following format: Company (Number) is the Reason: Briefly discuss two (2) reasons why it is difficult to use ratios to compare firms from different countries. Briefly discuss the basis for Mogdiliani and Miller (MM) to claim in their Proposition 1 that capital structure does not matter.
Compare the Solvency, Liquidity and Profitability for the two companies
For the highlighted in yellow portions what are the Excel formulaes used to calculate ratios?
1. Provide the equation for each ratio listed. 2. What does each ratio listed tell you about the company? 3. Compare the company ratios to the standard ratios, and give an overall analysis of the company.
Determining the effects of business transactions on selected ratios Financial statement data of Style Traveler Magazine include the following items: Requirements Compute Style Traveler’s current ratio, debt ratio, and earnings per share. Round all ratios to two decimal places, and use the following format for your answer: Compute the three ratios after evaluating the effect of each transaction that follows. Consider each transaction separately a. Purchased merchandise inventory of $49,000 on account. b. Borrowed $127,000 on a long-term note payable. c. issued 2,000 shares of common stock, receiving cash of $107,000. d. Received cash on account, $5,000.
Methodology:• Based on the above information the consulting group will conduct ratio analysis for the following ratios:o Current ratio o Receivable’s turnover o Times’s interest earned o Profit margin o Days in inventory o Return on assets o Cash current debt coverage ratio • As a next step the group will compare the ratios calculated above with industry benchmarks. The benchmarks are indicated within brackets besides each ratio.o Current ratio (3 to 1) o Receivable’s turnover (13 times) o Times’s interest earned (9 times) o Profit margin (12%) o Days in inventory (50 days) o Return on assets (12%) o Cash current debt coverage ratio (2 times
VII. Direction: Compute and interpret. The following comparative financial statements are provided by Avatar Industries. You were asked to compute the different financial ratios and provide your interpretations with regards to profitability, efficiency, liquidity and solvency of the company. Use the Answer Sheet template below to input your answer and solution. AVATAR INDUSTRIES AVATAR INDUSTRIES Comparative Statement of Financial Position For the years 2019 and 2018 Comparative Income Statement For the years 2019 and 2018 2019 2018 2019 2018 ASSETS Current Assets: Sales P200,000 P210,000 Cash & Cash Equivalent P65,000 P70,000 Sales Returns and Allowances 40,000 25,000 Accounts Receivable 40,000 35,000 Net Sales 160,000 185,000 Marketable Securities 40,000 35,000 Cost of Goods Sold 100,000 115,625 Inventory 100,000 80,000 Gross Profit 60,000 69,375 Total Current Assets 245,000 220,000 Operating Expenses: Fixed Assets 200,000 160,000 Selling Expenses 22,000 25,000 Total Assets P445,000…
Please use the financial ratios below to evaluate and each company’s performance relative to the other three companies in the industry. Please be more specific. Net profit margin Total asset turnover Assets-to-Equity Ratio ROE Axel Co. 19% 1.53 3.4 98.8% Blue Co 6% 1.88 1.6 18.0% Carol Co. 10% 1.00 1.06 10.6% David Co. 4% 1.11 1.8 8.0%
Use the financial ratios of company A and company B to answer the questions below. Company A Company B Yr t+1 Year t Yr t+1 Year t Current ratio 0.55 0.59 0.56 0.55 Accounts receivable turnover 6.22 6.25 5.06 4.87 Debt to total assets 40.5% 40% 67.8% 65.9% Times interest earned 8.80 30.6 5.97 6.33 Free cash flows (in millions) ($3,819) $3,173 $168 $550 Return on stockholders’equity 7.7% 7.7% 26.6% 23.3% Return on assets 4.3% 4.3% 8.9% 7.9% Profit margin…
The average liabilities, average stockholders' equity, and average total assets are as follows: 1. Determine the following ratios for both companies, rounding ratios and percentagesto one decimal place: a. Return on total assets b. Return on stockholders' equity c. Times interest earned d. Ratio of total liabilities to stockholders' equity 2. Based on the information in (1), analyze and compare the two companies'solvency and profitability. Comprehensive profitability and solvency analysis Marriott International, Inc., and Hyatt Hotels Corporation are two major owners and managers of lodging and resort properties in the United States. Abstracted income statement information for the two companies is as follows for a recent year (in millions): Balance sheet information is as follows:
1. If current assets amounted to P600,000 and current liabilities amounted to P200,000, what is the current ratio of the entity? *a. P800,000b. P400,000c. 3d. 1/3 3. If net sales is P200,000 and the average accounts receivable is P50,000, what is the accounts receivable turnover ratio? *a. 4b. 1/4c. P150,000d. P250,000 5. If total assets amounted to P800,000 and total liabilities amounted to P200,000, what is the debt to equity ratio? *a. 4b. 0.3333c. 0.25d. 3

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