Web Structure Inc. calculated the ratios shown below for 2023 and 2022: Required: 1. & 2. Identify whether the change in the ratios from 2022 to 2023 is favourable (F) or unfavourable (U"), and calculate the 2023 ratios for Alberta Playground Inc. Including a comparison against the industry averages. (Select the option "Neither For U" If the option Favorable or Unfavorable is not applicable.) Current ratio Quick ratio Accounts receivable turnover Days' sales uncollected Inventory turnover Days' sales in inventory Total asset turnover. Debt ratio Times interest earned Profit margin Gross profit ratio 2023 1.14:1 1.05:1 16 41 7.2 55 3.8 73 2.8 18.5 15.0 2022 1.03 1 0.90 1 23 37 7.6 43 2.4 53 9.3 21.0 13.5 Trend Industry Average 1.6:1 1.1:1 16 times 21 days 5 times 70 days 2.3 times 35 % 50 times 14 % 18 % Comparison to Industry Average
Web Structure Inc. calculated the ratios shown below for 2023 and 2022: Required: 1. & 2. Identify whether the change in the ratios from 2022 to 2023 is favourable (F) or unfavourable (U"), and calculate the 2023 ratios for Alberta Playground Inc. Including a comparison against the industry averages. (Select the option "Neither For U" If the option Favorable or Unfavorable is not applicable.) Current ratio Quick ratio Accounts receivable turnover Days' sales uncollected Inventory turnover Days' sales in inventory Total asset turnover. Debt ratio Times interest earned Profit margin Gross profit ratio 2023 1.14:1 1.05:1 16 41 7.2 55 3.8 73 2.8 18.5 15.0 2022 1.03 1 0.90 1 23 37 7.6 43 2.4 53 9.3 21.0 13.5 Trend Industry Average 1.6:1 1.1:1 16 times 21 days 5 times 70 days 2.3 times 35 % 50 times 14 % 18 % Comparison to Industry Average
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
H2.
Transcribed Image Text:Web Structure Inc. calculated the ratios shown below for 2023 and 2022:
Required:
1. & 2. Identify whether the change in the ratios from 2022 to 2023 is favourable (F) or unfavourable (U"), and calculate the 2023
ratios for Alberta Playground Inc. Including a comparison against the industry averages. (Select the option "Neither For U" If the
option Favorable or Unfavorable is not applicable.)
Current ratio
Quick ratio
Accounts receivable turnover
Days' sales uncollected
Inventory turnover
Days' sales in inventory
Total asset turnover.
Debt ratio
Times interest earned
Profit margin
Gross profit ratio
2023
1.14:1
1.05:1
16
41
7.2
55
3.8
73
2.8
18.5
15.0
2022
1.031
0.90 1
23
37
7.6
43
2.4
53
9.3
21.0
13.5
Trend
Industry
Average
1.6:1
1.1:1
16 times
21 days
5 times
70 days
2.3 times
35 %
50 times
14 %
18 %
Comparison to
Industry Average
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