Horngren's Financial & Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780133866292
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 15, Problem 15.8SE
Shine's Companies, a home improvement store chain, reported the following summarized figures:
Shine's has 100,000 common shares outstanding during 2016.
Measuring ability to pay liabilities
Requirements
- 1. Compute the debt ratio and the debt to equity ratio at May 31, 2016, for Shine’s Companies.
- 2. Is Shine’s ability to pay its liabilities strong or weak? Explain your reasoning.
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...And does the current ratio improves, deteriorate, or hold steady during 2018?
Win's Companies, a home improvement store chain, reported the following summanzed figures
E (Click the icon to view the income statement.)
E (Click the icon to view the balance sheets.)
Win's has 20,000 common shares outstanding during 2018.
Read the requirements
Requirement 1. Compute Win's Companies' current ratio at May 31, 2018 and 2017
Begin by selecting the formula to calculate Win's Companies' current ratio. Then enter the amounts and calcu ale the current ratio for 2018 and then 2017. (Round your answers to two decimal places, X.XX.)
Current ratio
(i Balance Sheets
Income Statement
Win's Companies
Win's Companies
Balance Sheet
Income Statement
May 31, 2018 and 2017
Years Ended May 31, 2018 and 2017
Assets
Liabilities
2018
2017
2018
2017
2018
2017
Net Sales Revenue
24
57 200 $
39,800
Cash
$.
2.300 $
1300 Total Current Liabilities
22,000 $
12,900
Cost of Goods Sold
22.500
25,500
12,200
11,300
Short-term Invesiments
29 000
13.000 Long-term Liabilities
Interest Expense
500
320…
The following information is from the 2014 annual report of Weber Corporation, a company
that supplies manufactured parts to the household appliance industry.
Average Total Assets
Average Interest - Bearing Debt
Average Other Liabilities
Average Shareholder's Equity
Sales
Interest Expense
Net Income
24,500,000
10,000,000
2,250,000
12,250,000
49,000,000
800,000
2,450,000
Required:
1. Compute Weber Corporation's return on assets (ROA) for 2014 using a combined federal
and state income tax rate of 40% where needed.
2. Compute the profit margin and asset turnover components of ROA for 2014.
3. Weber's management believes that various business initiatives will produce an asset turnover
rate of 2.25 next year. If the profit margin next year is unchanged from 2014, what
will be the company's ROA?
Chapter 15 Solutions
Horngren's Financial & Managerial Accounting (5th Edition)
Ch. 15 - What part of the Libertys annual report is written...Ch. 15 - Horizontal analysis of Liberty's balance sheet for...Ch. 15 - Vertical analysis of Liberty's balance sheet for...Ch. 15 - Which statement best describes Liberty's acid-test...Ch. 15 - Liberty's inventory turnover during 2017 was...Ch. 15 - Prob. 6QCCh. 15 - Prob. 7QCCh. 15 - Liberty's rate of return on common stockholders'...Ch. 15 - The company has 2,500 shares of common stock...Ch. 15 - Prob. 10AQC
Ch. 15 - What ate the three main ways to analyze financial...Ch. 15 - What is an annual report? Briefly describe the key...Ch. 15 - Prob. 3RQCh. 15 - What is trend analysis, and how does it differ...Ch. 15 - Prob. 5RQCh. 15 - Prob. 6RQCh. 15 - Prob. 7RQCh. 15 - Briefly describe the ratios that can be used to...Ch. 15 - Prob. 9RQCh. 15 - Briefly describe the ratios that can be used to...Ch. 15 - Briefly describe the ratios that can be used to...Ch. 15 - Prob. 12RQCh. 15 - Prob. 13RQCh. 15 - Prob. 14RQCh. 15 - Prob. 15RQCh. 15 - Prob. 15.1SECh. 15 - Performing horizontal analysis McDonald Corp....Ch. 15 - Calculating trend analysis Variline Corp. reported...Ch. 15 - Performing vertical analysis Hoosier Optical...Ch. 15 - Preparing common-size income statement Data for...Ch. 15 - Shine's Companies, a home improvement store chain,...Ch. 15 - Shine's Companies, a home improvement store chain,...Ch. 15 - Shine's Companies, a home improvement store chain,...Ch. 15 - Prob. 15.9SECh. 15 - Prob. 15.10SECh. 15 - Prob. 15.11SECh. 15 - Using ratios to reconstruct a balance sheet...Ch. 15 - Prob. 15.13SECh. 15 - Prob. 15.14SECh. 15 - Prob. 15.15ECh. 15 - Computing trend analysis Grand Oaks Realty's net...Ch. 15 - Prob. 15.17ECh. 15 - Prob. 15.18ECh. 15 - Prob. 15.19ECh. 15 - Prob. 15.20ECh. 15 - Analyzing the ability to pay liabilities Big Bend...Ch. 15 - Analyzing profitability Varsity, Inc.s comparative...Ch. 15 - Prob. 15.23ECh. 15 - Using ratios to reconstruct a balance sheet The...Ch. 15 - Prob. 15.25ECh. 15 - Computing earnings per share Falconi Academy...Ch. 15 - Prob. 15.27APCh. 15 - Prob. 15.28APCh. 15 - Prob. 15.29APCh. 15 - Prob. 15.30APCh. 15 - Using ratios to evaluate a stock investment...Ch. 15 - Prob. 15.32APCh. 15 - Preparing an income statement The following...Ch. 15 - Computing trend analysis and return on common...Ch. 15 - Prob. 15.35BPCh. 15 - Prob. 15.36BPCh. 15 - Determining the effects of business transactions...Ch. 15 - Prob. 15.38BPCh. 15 - Prob. 15.39BPCh. 15 - Prob. 15.40BPCh. 15 - Prob. 15.41CPCh. 15 - Lance Berkman is the controller of Saturn, a dance...Ch. 15 - Prob. 15.1CTEI
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