The table below shows the ratios for two companies. Unfortunately, the account clerk who computed the ratios made an error and is now unsure of the identitie of the two companies. Possible candidates are: a bubble tea company, a sporting shoe and apparel retailer, and a heavy equipment manufacturer. СOMPANY 1 2 Debt-equity 0.1 0.3 Inventory Turnover 60.0 15.0 Current Ratio 0.5 0.9 Sales/Total Assets 15.0 8.0 Sales/Receivables 90.0 60.6 Interpret the ratios in the table above to identify the two (2) companies and briefl discuss one (1) reason in the following format: The bubble tea company is likely to be company 1 /2/ none of them (choose on (1)). Reason: The sporting shoe and apparel retailer is likely to be company 1 /2/ none of then (choose one (1)). Reason: The heavy equipment manufacturer is likely to be company 1 /2 / none of then (choose one (1)). Reason: Note: For your answer, you do not have to follow the same order as the listing o the companies above

The table below shows the ratios for two companies. Unfortunately, the account clerk who computed the ratios made an error and is now unsure of the identitie of the two companies. Possible candidates are: a bubble tea company, a sporting shoe and apparel retailer, and a heavy equipment manufacturer. СOMPANY 1 2 Debt-equity 0.1 0.3 Inventory Turnover 60.0 15.0 Current Ratio 0.5 0.9 Sales/Total Assets 15.0 8.0 Sales/Receivables 90.0 60.6 Interpret the ratios in the table above to identify the two (2) companies and briefl discuss one (1) reason in the following format: The bubble tea company is likely to be company 1 /2/ none of them (choose on (1)). Reason: The sporting shoe and apparel retailer is likely to be company 1 /2/ none of then (choose one (1)). Reason: The heavy equipment manufacturer is likely to be company 1 /2 / none of then (choose one (1)). Reason: Note: For your answer, you do not have to follow the same order as the listing o the companies above

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Cash Balance Sheet Marketable securities Account receivable Inventory Prepaid rent Total current assets Net Plant and equipment Total assets Account payable Notes payable Accruals Total current liabilities Long-term debt Common stockholders' equity Total liabilities and stockholders' equity Sales Less; Cost of goods sold Gross profit Less: General and administrative Less: Interest Less: Depreciation Total operating and interest expense Earning before tax Less: tax Net income Less: cash dividend Change in retained earnings James Company 2015 15,000 6,000 42,000 51,000 1,200 115,200 286,000 401,200 48,000 15,000 6,000 69,000 160,000 172,200 401,200 2016 14,000 6,200 33,000 84,000 1,100 138,000 270,000 408,300 57,000 13,000 5,000 75,000 150,000 183,300 408,300 600.00 460.000 140.000 30.000 10.000 30.000 70.000 70.000 27.100 42.900 31.800 11.100
4) Using the Chop – Shop approach (or Break-up Value Approach), assign a value for Cranberry Ltd whose stock is current trading at a total Market Price of € 14 million. For Cranberry Ltd, the accounting data set forth three business segments: Consumer Wholesale Retail and General Centers, Data for The Firm’s three segments are as follows – Business Segment Segment Sales Segment Assets Segment Operating Income Wholesale Retail General € 2,25,000 € 7,20,000 € 25,00,000 € 7,00,000 € 6,00,000 € 40,00,000 € 175,000 € 2,50,000 € 7,00,000 Industry data for “Pure – Play” Firms have been compiled and are summarized as follows- Business Segment Capitalization / Sales Capitalization / Assets Capitalization / Operating Income Wholesale Retail General 1.85 .20 .80 2.70 1.70 2.70 9.00 8.00 4.00
Hello, I wanted to know why for the calculation of the current ratio and working capital, on the one hand the mortgage payable is not considered as a current liability, and on the other hand the inventory is not considered as a a current asset ? Usually they are considered as current assets and liabilities, thus I don't understand why in this case no. Thank you in advance for your answer..
The following table provides summary data for Target and its competitors, Kohl's and Wal-Mart. (in millions) Target Kohl's Wal-Mart Company assumed value -- $13,487 $322,123 Equity assumed value -- $10,922 $272,541 NOPAT $3,260 $980 $8,312 Net income $2,937 $801 $6,670 Net nonoperating obligations (assets) $11,340 $2,565 $49,582 Common shares outstanding 510.9 shares 159.0 shares 2,844.0 shares (a) Compute the price to NOPAT ratio for both Kohl's and Wal-Mart. Round your answers to two decimal places.Kohl's Answer:Wal-Mart Answer:(b) Use Kohl's and Wal-Mart as comparables, along with the company value to NOPAT ratios from part (a), and then estimate for Target its company intrinsic value, its equity intrinsic value, and its equity intrinsic value per share. Round the intrinsic value and equity intrinsic value to the nearest million and the value per share to the nearest cent.Average of the two rounded ratios in (a) aboveAnswer (Round to two decimal places.)
In a minimum of 175 words Imagine that you’ve been asked to explain 1 of the major accounting ratios to a group of high school students who have no background in business or accounting but are eager to learn. Choose 1 of the following ratios and describe how you would explain it in your own words, using a specific example: current ratio asset turnover profit margin on sales
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The following financial information is presented for three different companies.Determine the missing amounts. Cullumber Cosmetics Riverbed Grocery Marin Wholesalers Sales revenue $90,500 $enter a dollar amount (e) $125,800 Sales returns and allowances enter a dollar amount (a) 5,810 12,600 Net sales 86,100 97,000 enter a dollar amount (i) Cost of goods sold 56,200 enter a dollar amount (f) enter a dollar amount (j) Gross profit enter a dollar amount (b) 40,800 25,100 Operating expenses 19,800 enter a dollar amount (g) 18,100 Income from operations enter a dollar amount (c) enter a dollar amount (h) enter a dollar amount (k) Other expenses and losses 3,300 7,400 enter a dollar amount (l) Net income enter a dollar amount (d) 11,600 4,100
Henry Josstick has just started his first accounting course and has prepared the following balance sheet and income statement for Omega Corp. Unfortunately, although the data for the individual items are correct, he is very confused as to whether an item should go in the balance sheet or income statement and whether it is an asset or liability. BALANCE SHEET Payables $ 39 Inventories $ 54 Less accumulated depreciation 124 Receivables 55 Total current assets Total current liabilities Long-term debt $ 370 Interest expense $ 29 Property, plant, and equipment 540 Total liabilities Net fixed assets Shareholders’ equity $ 106 Total assets Total liabilities and shareholders’ equity INCOME STATEMENT Net sales $ 740 Cost of goods sold 600 Selling, general, and administrative expenses 42 EBIT Debt due for repayment $ 29 Cash 19 Taxable income Taxes $ 19…

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