You want to invest your savings of P200,000 in a business, which of thetwo businesses will you invest in? Calculate the following ratios to determinethe financial health of each business.Ken's Milk TeaBurger HouseP400,00020,000Nila's PizzaParlorCashP320,00025,000P540,000Accounts ReceivableProperty, PlantEquipmentAccounts PayableTotal LiabilitiesTotal EquityInterest Expenseand650,000150,000270,00060,000245,000825,0009,000615,00012,000Net Sales420,000640,000170,00056,000Gross Profit154,000Net Profit52,600Average inventory435,000300,000. Compute the following ratios to determine the financial health and condition of eachbusiness.Ken's Milk TeaNila's PizzaBurger HouseParlor1. Current Ratio2. Inventory Turnover3. Debt Ratio4. Gross Profit Ratio135. Net Profit Ratio

The ratio analysis helps to analyse the financial statements of the business. Current ratio =…

two businesses will you invest in? Calculate the following ratios to determine the financial health of each business. Ken's Milk Tea Nila's Pizza Burger House P400,000 20,000 Parlor Cash P320,000 Accounts Receivable 25,000 P540,000 Property, Plant Equipment Accounts Payable and 650,000 Total Liabilities Total Equity Interest Expense 60,000 245,000 825,000 150,000 270,000 615,000 9,000 12,000 Net Sales 420,000 640,000 Gross Profit 154,000 170,000 Net Profit 52,600 56,000 Average inventory 435,000 300,000 e the following ratios to determine the financial health and condition of eac Ess. Ken's Milk Tea Nila's Pizza

two businesses will you invest in? Calculate the following ratios to determine the financial health of each business. Ken's Milk Tea Nila's Pizza Burger House P400,000 20,000 Parlor Cash P320,000 Accounts Receivable 25,000 P540,000 Property, Plant Equipment Accounts Payable and 650,000 Total Liabilities Total Equity Interest Expense 60,000 245,000 825,000 150,000 270,000 615,000 9,000 12,000 Net Sales 420,000 640,000 Gross Profit 154,000 170,000 Net Profit 52,600 56,000 Average inventory 435,000 300,000 e the following ratios to determine the financial health and condition of eac Ess. Ken's Milk Tea Nila's Pizza

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

Using the data below compute the Current Ratio and Quick Ratio Show your solutions Razor Company has provided the following accounts: Cash P300,000 Accounts Payable 700,000 Interest Payable 600,000 Rent Payable 200,000 Utilities Payable 100,000 Accrued Expenses 3,600,000 Notes Payable ( 6% 3-year) 1,500,000 Bonds Payable (8% 5-year) Accounts Receivable Inventories Marketable Securities Prepaid Expense Property, Plant, and Equipment Notes Receivable (8% 4-year) • Previous P250,000 40,000 70,000 80,000 60,000 1,400,000 2,100,000
Santana Rey has consulted with her local banker and is considering financing an expansion of her business by obtaining a long-term bank loan. Selected account balances at March 31, 2020, for Business Solutions follow. Total assets $121,068 Total liabilities $867 Total equity $120, 201 Required: 1. The bank has offered a long-term secured note to Business Solutions. The bank's loan procedures require that a client's debt-to- equity ratio not exceed 0.88. As of March 31, 2020, what is the maximum amount that Business Solutions could borrow from this bank? (Round your intermediate calculations to the nearest dollar amount.) 2. Assume Business Solutions borrows the maximum amount allowed from the bank. (Round your intermediate dollar values to the nearest whole number and final answers to 1 decimal place.) (a) What percentage of assets would be financed by debt? (b) What percentage of assets would be financed by equity? 1. 2. 2. (b) (a) Maximum amount Percentage of assets financed by debt…
Assume the following: • A company is importing and selling Mercedes cars. • An Islamic bank invests US$8 million for an 80% profit share. • An investor invests US$2 million for a 20% profit share. • The investor is to be paid a 10% management fee as percentage of profit after expenses. • Sale proceeds = US$12,400,000 Expenses = US$200,000 Calculate the following: 1.1. The total return to the bank: 1.2. The total return to the investor:
You are evaluating the balance sheet for SophieLex’s Corporation. From the balance sheet you find the following balances: cash and marketable securities = $280,000; accounts receivable = $1,380,000; inventory = $2,280,000; accrued wages and taxes = $590,000; accounts payable = $890,000; and notes payable = $780,000. What is the quick ratio (round your answer to 2 decimal places
QUESTION #2 Populate the following “T-accounts” with the following data $100 million in mortgage-backed securities (MBS) $200 million demand deposits $20 million in reserves held by banks $100 million in Treasury securities held by banks $50 million in Treasury securities held by the Fed $5 million in overnight borrowing by banks from the Fed Imagine that households buy $3million worth of cars from firms. Show how the balance sheet of households and firms change, as well as any changes on the balance sheets of the banking sector or anywhere else (you don’t need to include the Treasury balance sheet here). Households Banks Federal Reserve Firms ___A_______L___ ___A_______L___ ___A_____L___ ___A_____L___
If a business has the following balances, what would be the amount of total liabilities?ASSETSCash $ 5000Accounts Receivable 2575Equipment 14000OWNER'S EQUITYAnne Miller, Capital 2600
You are evaluating the balance sheet for SophieLex's Corporation. From the balance sheet you find the following balances: cash and marketable securities = $450,000; accounts receivable = $1,100,000; inventory = $2,000,000; accrued wages and taxes = $450,000; accounts payable = $750,000; and notes payable = $500,000. Calculate SophieLex's current ratio.
Assume that you are a bank officer. Perform a comparative analysis based on the above ratios.Advise the bank whether to grant Big Bhd. a loan.
The following information is extracted from Satellite Bank's balance sheet (all numbers are in millions of dollars). Assets (with liquidity levels in the parentheses) are: • Cash $38 Treasury securities $50 • AAA-rated Commercial Loans $280 (Level 2A) • Residential mortgage-backed securities $110 (Level 2B) • Land and buildings $40 Liabilities (with Run-off factors in the parentheses) are: Stable retail deposits $180 (3%) • Less stable retail deposits $50 (10%) • Less stable small business deposits $50 (10%) • Unsecured wholesale funding non-financial corporates $130 (75%) Assume that a 15% haircut applies to Level 2A assets and a 25% haircut applies to level 2B assets. Assume further that the amount of Level 2 assets in the stock of HQLA is capped at 2 of the amount of Level 1 assets. Cash inflows over the next 30 days from the bank's performing assets are $15 million. What is the bank's Liquidity Coverage Ratio (LCR)? a. 149.81% b. 98.74% c. 417.26% d. 129.91% O e. None of the other…
the information in the photo wants me to find out the working capital and current ratio
Only typed answer Refer to the accompanying table of information for the Moolah Bank. Assume that the listed amounts constitute this bank's complete set of accounts. Moolah's Multiple Choice assets are $1,100. liabilities are $1,100. net worth is $300. profit is $1,000.
2. For each of the following transactions, place an X in the table to indicate whether direct or indirect financing is utilized: Financing Activity Direct Indirect Jim and Mary obtain a mortgage for a new house from their commercial bank Juanita deposits a portion of her pay each month into a savings account Delta Airlines uses an investment to sell $25 billion in corporate debt Airbus North America borrows $5 million from Bank of America for working capital Boeing draws on its credit line at Citibank borrowing $20 billion American Airlines issues new stock to increase cash A technology start-up company receives funding from a venture capitalist firm An entrepreneur borrows money from family members to start a new business