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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