(a) Efficiency ratio means: The efficiency ratio is normally used to break down how well an organization utilizes its assets and liabilities inside. An efficiency ratio can figure the turnover of receivables, the reimbursement of liabilities, the amount and use of value, and the general utilization of stock and apparatus. To compute: Compute the assets efficiency ratios for Twisted for 2019 and 2018.

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Answer 1

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Chapter 12, Problem 90PSA

To determine

(a)

Efficiency ratio means:

The efficiency ratio is normally used to break down how well an organization utilizes its assets and liabilities inside. An efficiency ratio can figure the turnover of receivables, the reimbursement of liabilities, the amount and use of value, and the general utilization of stock and apparatus.

To compute:

Compute the assets efficiency ratios for Twisted for 2019 and 2018.

To determine

(b)

Profitability ratios are a class of budgetary measurements that are utilized to survey a business' capacity to create income in respect to its income, working costs, accounting report resources, and shareholders' equity after some time, utilizing information from a particular point in time.

To discuss:

Compute the profitability ratio for twisted for 2019 and 2018 also determine that how much Twised’s Profitability ratio changed or not.

To determine

(c)

A proportion of an organization’s debt to its absolute financing. The debt the board proportion estimates the amount of an organization’s tasks originates from debt rather than different types of financing, for example, stock or individual investment funds

To calculate:

Calculate the debt management ratios for twisted for 2018 and 2019. Discuss wether creditor are as secure in 2019 as they were in 2018.

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Required: (a) You are required to calculate the following ratios:(i) Gross profit margin(ii) Operating profit margin(iii) Expenses to sales(iv) Return on Capital Employed(v) Asset turnover(vi) Non-current asset turnover(vii) Current Ratio(viii) Quick Ratio(ix) Inventory days(x) Receivables days(xi) Payable days(xii) Interest cover (b) In light of your calculations comment on the performance of the company over thelast two years.

(A)Prepare ratio analyses (for 2019, 2018, and 2017) for both companies.You should include the following ratios in your computations:  1. Profitability ratios Gross Profit margin Profit margin Return on assets Return on equity 2. Productivity Inventory Turnover Accounts Receivable Turnover PPE Turnover Asset Turnover 3. Solvency Debt-to-equity Times interest earned Return on Financial leverage 4. Liquidity Current Ratio Quick Ratio Operating cash flow to current liabilities Working capital

Question 1 Mabel is a potter and sells her pottery at stalls that she rents in four tourist information centres across the south of England. Extracts from her financial statements for the years ended 31 December 2021 and 2020 are shown below. Statement of profit or loss for the year ended 31 December: 2021 28,900 |(16,500) 12,400 (3,800) 8,600 |(4,000) 4,600 2020 Revenue 27,200 (14,000) 13,200 (3,600) 9,600 Cost of sales Gross profit Operating expenses Operating profit Non-operating expenses Net profit 9,600 Statement of financial position as at 31 December: 2021 Non-current assets Current assets Total assets 22,660 4,360 27,020 2020 20,920 3,750 24,670 Equity Non-current liabilities Current liabilities Equity and liabilities 20,940 3,000 3,080 27,020 16,340 3,500 4,830 24,670 The following information is also relevant: In July 2021 the rent on one of Mabel's stalls was increased significantly for the third time in three years so she decided not to renew the annual contract. She sold…

Answer 2

Question

Chapter 12, Problem 90PSA

To determine

(a)

Efficiency ratio means:

The efficiency ratio is normally used to break down how well an organization utilizes its assets and liabilities inside. An efficiency ratio can figure the turnover of receivables, the reimbursement of liabilities, the amount and use of value, and the general utilization of stock and apparatus.

To compute:

Compute the assets efficiency ratios for Twisted for 2019 and 2018.

To determine

(b)

Profitability ratios are a class of budgetary measurements that are utilized to survey a business' capacity to create income in respect to its income, working costs, accounting report resources, and shareholders' equity after some time, utilizing information from a particular point in time.

To discuss:

Compute the profitability ratio for twisted for 2019 and 2018 also determine that how much Twised’s Profitability ratio changed or not.

To determine

(c)

A proportion of an organization’s debt to its absolute financing. The debt the board proportion estimates the amount of an organization’s tasks originates from debt rather than different types of financing, for example, stock or individual investment funds

To calculate:

Calculate the debt management ratios for twisted for 2018 and 2019. Discuss wether creditor are as secure in 2019 as they were in 2018.

Expert Solution & Answer

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Answer 3

Question

Chapter 12, Problem 90PSA

To determine

(a)

Efficiency ratio means:

The efficiency ratio is normally used to break down how well an organization utilizes its assets and liabilities inside. An efficiency ratio can figure the turnover of receivables, the reimbursement of liabilities, the amount and use of value, and the general utilization of stock and apparatus.

To compute:

Compute the assets efficiency ratios for Twisted for 2019 and 2018.

To determine

(b)

Profitability ratios are a class of budgetary measurements that are utilized to survey a business' capacity to create income in respect to its income, working costs, accounting report resources, and shareholders' equity after some time, utilizing information from a particular point in time.

To discuss:

Compute the profitability ratio for twisted for 2019 and 2018 also determine that how much Twised’s Profitability ratio changed or not.

To determine

(c)

A proportion of an organization’s debt to its absolute financing. The debt the board proportion estimates the amount of an organization’s tasks originates from debt rather than different types of financing, for example, stock or individual investment funds

To calculate:

Calculate the debt management ratios for twisted for 2018 and 2019. Discuss wether creditor are as secure in 2019 as they were in 2018.

Expert Solution & Answer

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Answer 4

Question

Chapter 12, Problem 90PSA

To determine

(a)

Efficiency ratio means:

The efficiency ratio is normally used to break down how well an organization utilizes its assets and liabilities inside. An efficiency ratio can figure the turnover of receivables, the reimbursement of liabilities, the amount and use of value, and the general utilization of stock and apparatus.

To compute:

Compute the assets efficiency ratios for Twisted for 2019 and 2018.

To determine

(b)

Profitability ratios are a class of budgetary measurements that are utilized to survey a business' capacity to create income in respect to its income, working costs, accounting report resources, and shareholders' equity after some time, utilizing information from a particular point in time.

To discuss:

Compute the profitability ratio for twisted for 2019 and 2018 also determine that how much Twised’s Profitability ratio changed or not.

To determine

(c)

A proportion of an organization’s debt to its absolute financing. The debt the board proportion estimates the amount of an organization’s tasks originates from debt rather than different types of financing, for example, stock or individual investment funds

To calculate:

Calculate the debt management ratios for twisted for 2018 and 2019. Discuss wether creditor are as secure in 2019 as they were in 2018.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 12, Problem 90PSA

To determine

(a)

Efficiency ratio means:

The efficiency ratio is normally used to break down how well an organization utilizes its assets and liabilities inside. An efficiency ratio can figure the turnover of receivables, the reimbursement of liabilities, the amount and use of value, and the general utilization of stock and apparatus.

To compute:

Compute the assets efficiency ratios for Twisted for 2019 and 2018.

To determine

(b)

Profitability ratios are a class of budgetary measurements that are utilized to survey a business' capacity to create income in respect to its income, working costs, accounting report resources, and shareholders' equity after some time, utilizing information from a particular point in time.

To discuss:

Compute the profitability ratio for twisted for 2019 and 2018 also determine that how much Twised’s Profitability ratio changed or not.

To determine

(c)

A proportion of an organization’s debt to its absolute financing. The debt the board proportion estimates the amount of an organization’s tasks originates from debt rather than different types of financing, for example, stock or individual investment funds

To calculate:

Calculate the debt management ratios for twisted for 2018 and 2019. Discuss wether creditor are as secure in 2019 as they were in 2018.

Answer 6

Chapter 12, Problem 90PSA

To determine

(a)

Efficiency ratio means:

The efficiency ratio is normally used to break down how well an organization utilizes its assets and liabilities inside. An efficiency ratio can figure the turnover of receivables, the reimbursement of liabilities, the amount and use of value, and the general utilization of stock and apparatus.

To compute:

Compute the assets efficiency ratios for Twisted for 2019 and 2018.

Answer 7

Chapter 12, Problem 90PSA

To determine

(a)

Efficiency ratio means:

The efficiency ratio is normally used to break down how well an organization utilizes its assets and liabilities inside. An efficiency ratio can figure the turnover of receivables, the reimbursement of liabilities, the amount and use of value, and the general utilization of stock and apparatus.

To compute:

Compute the assets efficiency ratios for Twisted for 2019 and 2018.

Answer 8

To determine

(b)

Profitability ratios are a class of budgetary measurements that are utilized to survey a business' capacity to create income in respect to its income, working costs, accounting report resources, and shareholders' equity after some time, utilizing information from a particular point in time.

To discuss:

Compute the profitability ratio for twisted for 2019 and 2018 also determine that how much Twised’s Profitability ratio changed or not.

Answer 9

To determine

(b)

Profitability ratios are a class of budgetary measurements that are utilized to survey a business' capacity to create income in respect to its income, working costs, accounting report resources, and shareholders' equity after some time, utilizing information from a particular point in time.

To discuss:

Compute the profitability ratio for twisted for 2019 and 2018 also determine that how much Twised’s Profitability ratio changed or not.

Answer 10

To determine

(c)

A proportion of an organization’s debt to its absolute financing. The debt the board proportion estimates the amount of an organization’s tasks originates from debt rather than different types of financing, for example, stock or individual investment funds

To calculate:

Calculate the debt management ratios for twisted for 2018 and 2019. Discuss wether creditor are as secure in 2019 as they were in 2018.

Answer 11

To determine

(c)

A proportion of an organization’s debt to its absolute financing. The debt the board proportion estimates the amount of an organization’s tasks originates from debt rather than different types of financing, for example, stock or individual investment funds

To calculate:

Calculate the debt management ratios for twisted for 2018 and 2019. Discuss wether creditor are as secure in 2019 as they were in 2018.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 12 - Describe how some of the primary groups of users...Ch. 12 - Prob. 2DQ Ch. 12 - Prob. 3DQ Ch. 12 - Prob. 4DQ Ch. 12 - Prob. 5DQ Ch. 12 - Prob. 6DQ Ch. 12 - Prob. 7DQ Ch. 12 - Prob. 8DQ Ch. 12 - Prob. 9DQ Ch. 12 - Prob. 10DQ

Solution Summary: The author explains the efficiency ratio and profitability ratios for Twisted for 2019 and 2018.

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