Requirement 1.a.
To Compute: The
Requirement 1.b.
To Compute: The quick (acid-test) ratio for A Mart for the year 2015 and 2016.
Requirement 1.c.
To Compute: The
Requirement 1.d.
To Compute: The inventory turnover and days’ inventory outstanding (DIO) for A Mart for the year 2015 and 2016.
Requirement 1.e.
To Compute: The accounts payable turnover and days’ payable outstanding (DPO) for A Mart for the year 2015 and 2016.
Requirement 1.f.
To Compute: The cash conversion cycle (in days) for A Mart for the year 2015 and 2016.
Requirement 1.g.
To Compute: The value of times-interest- earned ratio for 2016 and 2015.
Requirement 1.h.
The return on assets for 2016 and 2015 (using DuPont Analysis).
Requirement 1.i.
The return on common
Requirement 1.j.
The earning per share for 2016 and 2015.
Requirement 1.k.
The price earnings ratio for 2016 and 2015.
Requirement 2.a.
To Comment: Whether the above calculated ratios of 2016 has improved or deteriorated from 2015.
Requirement 2.b.
To Comment: Whether the investment attractiveness of the company’s common stock appears to have increased or decreased.
Requirement 3
To Mention: The necessary points that useful for computation of ratios.
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Chapter 13 Solutions
EBK FINANCIAL ACCOUNTING
- Crich Corporation uses direct labor hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor hours were 33,280 hours and the total estimated manufacturing overhead was $634,368. At the end of the year, actual direct labor hours for the year were 31,500 hours and the actual manufacturing overhead for the year was $634,368. Overhead at the end of the year was _. Financial Accountingarrow_forwardPlease given answer general accountingarrow_forwardCrowd Company applies overhead based on direct labor cost. Estimated overhead and direct labor costs for the year were $123,500 and $138,000, respectively. During the year, actual overhead was $114,400, and actual direct labor cost was $133,000. The entry to close the over- or underapplied overhead at year-end, assuming an immaterial amount, would include: Answerarrow_forward
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