Using the table below (with the yellow box) (give also the ratio for the blank in the yellow box then classify also), classify the 30 given ratios (names of the ratios, not the amounts) into (a) Liquidity ratios; (b) Solvency ratios; (c) Asset utilization ratios; (d) Profitability ratios; and (e) Market performance ratios

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 4PB
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Using the table below (with the yellow box) (give also the ratio for the blank in the yellow box then classify also), classify the 30 given ratios (names of the ratios, not the amounts) into

(a) Liquidity ratios;

(b) Solvency ratios;

(c) Asset utilization ratios;

(d) Profitability ratios; and

(e) Market performance ratios.

 

061
B
E
F
48
2020E
2019
Average
49
50 Current ratio
Quick ratio
52 Cash ratio
53 Debt ratio
54 Equity ratio
55 Debt-to-equity (D/E) ratio
56 Equity multiplier
Times interest earned (TIE) ratio
58 Dividend pagout ratio
59 Inventorg turnover
60 Days sales in inventorg
Accounts receivable turnover
62 Days sales outstanding
63 Accounts pagable turnover
64 Days pagable outstanding
65 Operating eyele
66 Cash conversion cycle
67 Fized asset turnover
68 Total asset turnover
69 Gross margin
70 Operating margin
Profit margin
72 Return on assets (ROA)
73 Return on equity (ROE)
74 Basic earning pover (BEP)
75 Basic earnings per share (EPS)
76 Price-to-earnings (PIE) ratio
77 Dividend gield
78 Market/book (MIB)
79 Book value per share (BYPS)
2.34
1.17
2.70
51
0.84
0.39
1.00
0.07
0.00
0.40
44.17%
55.83%
82.82%
60.00%
17.18%
40.00%
79.13%
481.94%
150.00%
260.28%
374.92%
200.00%
57
7.04
-0.96
6.20
0.22
-0.07
8.65
3.91
5.52
6.10
93.30
66.11
59.84
61
9.32
12.27
11.41
39.17
29.74
32.00
13.12
18.22
15.23
27.81
20.04
23.97
132.47
95.85
91.84
104.65
75.82
67.87
8.01
9.39
7.00
2.21
2.78
2.60
16.48%
8.39%
17.00%
7.00%
-2.17%
7.30%
71
3.60%
-2.65%
3.50%
7.97%
-7.39%
9.10%
20.74%
-27.70%
18.20%
-6.04%
19.10%
1.45
-1.60
1.16
8.40
-1.40
14.20
0.05
0.61
1.56
0.46
2.40
7.81
4.93
n.a.
Transcribed Image Text:061 B E F 48 2020E 2019 Average 49 50 Current ratio Quick ratio 52 Cash ratio 53 Debt ratio 54 Equity ratio 55 Debt-to-equity (D/E) ratio 56 Equity multiplier Times interest earned (TIE) ratio 58 Dividend pagout ratio 59 Inventorg turnover 60 Days sales in inventorg Accounts receivable turnover 62 Days sales outstanding 63 Accounts pagable turnover 64 Days pagable outstanding 65 Operating eyele 66 Cash conversion cycle 67 Fized asset turnover 68 Total asset turnover 69 Gross margin 70 Operating margin Profit margin 72 Return on assets (ROA) 73 Return on equity (ROE) 74 Basic earning pover (BEP) 75 Basic earnings per share (EPS) 76 Price-to-earnings (PIE) ratio 77 Dividend gield 78 Market/book (MIB) 79 Book value per share (BYPS) 2.34 1.17 2.70 51 0.84 0.39 1.00 0.07 0.00 0.40 44.17% 55.83% 82.82% 60.00% 17.18% 40.00% 79.13% 481.94% 150.00% 260.28% 374.92% 200.00% 57 7.04 -0.96 6.20 0.22 -0.07 8.65 3.91 5.52 6.10 93.30 66.11 59.84 61 9.32 12.27 11.41 39.17 29.74 32.00 13.12 18.22 15.23 27.81 20.04 23.97 132.47 95.85 91.84 104.65 75.82 67.87 8.01 9.39 7.00 2.21 2.78 2.60 16.48% 8.39% 17.00% 7.00% -2.17% 7.30% 71 3.60% -2.65% 3.50% 7.97% -7.39% 9.10% 20.74% -27.70% 18.20% -6.04% 19.10% 1.45 -1.60 1.16 8.40 -1.40 14.20 0.05 0.61 1.56 0.46 2.40 7.81 4.93 n.a.
ABC Corporation
Table 1 Balance Sheets
2020E
2019
2018
Assets
85,632 P
878,000
Cash
7,282 P
57,600
Accounts receivable
632,160
351,200
DInventories
|Total current assets
2Gross fixed assets
B Less: accumulated depreciation
4Net fixed assets
5 Total assets
1,716,480
1,287,360
1,926,802 P
1,202,950
263,160
939,790 P
2,866,592 P
715,200
2,680,112 P
1,124,000
1,197,160
491,000
380,120
817,040 P
3,497,152 P
146,200
344,800
1,468,800
P
- Liabilities and equity
B Accounts payable
e Accruals
DNotes payable
|Total current liabilities
e Long-term bonds
3 Common stock (100,000 shares)
a Retained earnings
5 Total common equity
5 Total liabilities and equity
436,800 P
524,160 P
145,600
408,000
489,600
136,000
300,000
1,144,800 P
400,000
636,808
200,000
481,600
1,650,568 P
723,432
323,432
1,721,176
460,000
460,000
231,176
32,592
203,768
1,952,352 P
492,592
2,866,592 P
663,768
1,468,800
3,497,152 P
3 Table 2 Income Statements
2020E
2019
2018
DSales
7,035,600 P
5,875,992
1,159,608
6,034,000 P
5,528,000
506,000
3,432,000
2,864,000
568,000
Cost of goods sold
e Gross income
3 Operating expenses except depreciation and amortization
A EBITDA
5 Depreciation and amortization
5Earnings before interest and taxes (EBIT)
- Interest expense
3 Earnings before taxes (EBT)
e Taxes (40%)
358,672
209,328
550,000
519,988
(13,988) P
116,960
(130,948) P
136,012
(266,960) P
(106,784)
(160,176) P
609,608 P
116,960
18,900
190,428
492,648 P
70,008
422,640 P
43,828
146,600
Pagé
189,056
253,584 P
58,640
87,960
DNet Incone
Transcribed Image Text:ABC Corporation Table 1 Balance Sheets 2020E 2019 2018 Assets 85,632 P 878,000 Cash 7,282 P 57,600 Accounts receivable 632,160 351,200 DInventories |Total current assets 2Gross fixed assets B Less: accumulated depreciation 4Net fixed assets 5 Total assets 1,716,480 1,287,360 1,926,802 P 1,202,950 263,160 939,790 P 2,866,592 P 715,200 2,680,112 P 1,124,000 1,197,160 491,000 380,120 817,040 P 3,497,152 P 146,200 344,800 1,468,800 P - Liabilities and equity B Accounts payable e Accruals DNotes payable |Total current liabilities e Long-term bonds 3 Common stock (100,000 shares) a Retained earnings 5 Total common equity 5 Total liabilities and equity 436,800 P 524,160 P 145,600 408,000 489,600 136,000 300,000 1,144,800 P 400,000 636,808 200,000 481,600 1,650,568 P 723,432 323,432 1,721,176 460,000 460,000 231,176 32,592 203,768 1,952,352 P 492,592 2,866,592 P 663,768 1,468,800 3,497,152 P 3 Table 2 Income Statements 2020E 2019 2018 DSales 7,035,600 P 5,875,992 1,159,608 6,034,000 P 5,528,000 506,000 3,432,000 2,864,000 568,000 Cost of goods sold e Gross income 3 Operating expenses except depreciation and amortization A EBITDA 5 Depreciation and amortization 5Earnings before interest and taxes (EBIT) - Interest expense 3 Earnings before taxes (EBT) e Taxes (40%) 358,672 209,328 550,000 519,988 (13,988) P 116,960 (130,948) P 136,012 (266,960) P (106,784) (160,176) P 609,608 P 116,960 18,900 190,428 492,648 P 70,008 422,640 P 43,828 146,600 Pagé 189,056 253,584 P 58,640 87,960 DNet Incone
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