Q: It indicates the proportion of debt in relation to resources provided by the owners, a. Debt…
A: Lets understand the basics. Debt to equity ratio is a ratio which compares how much proportionate…
Q: Return on Capiatal employed = O a. Return on Total Assets O b. Return on Equity Oc. Return on…
A: Solution: Return on capital employed = EBIT/ Capital employed Capital employed = Total assets -…
Q: increasing the company's debts on Return on Assets (ROA) and Return on Equity (ROE
A: Debt is the liability incurred by the company by borrowing for its financial needs.
Q: Owner's equity Select one: O a. The resulting amount when total а. revenue are subtracted from total…
A: Owner equity is the amount which is invested by the owner to carry forward a business to earn money.
Q: In which of the following financial statements will "changes in working capital" be reported? O A.…
A: Working capital is the amount of capital available with the firm which is used for day to day…
Q: All are financial measures, except: A. Market share B. Revenue growth C. Earnings per share D.…
A: Solution: All are financial measures, except "Reduction of past due accounts".
Q: Working Capital is a measure used to assess the liquidity of the company, computed as current assets…
A: The Answer is false Refer step2 for explanation
Q: The income from an equity method investee is reported on one line of the investor compa income…
A: Investment income in equity method is return on invested amount. It is treated as reduction in the…
Q: is a correct statement below? A. Equity is the residual interest in the liabilities of the entity…
A: Option A is incorrect The correct statement is Equity is the residual interest in the assets of the…
Q: When the Dividends account increases, how is the Accounting Equation impacted? O Decrease…
A: Dividends are the distributions that a company makes out of the earned profits to its shareholders…
Q: Operating activities are most closely related to a. long-term assets. b. current assets and current…
A: Operating Activities: Operating activities refer to those daily activities of the company involved…
Q: e Current Liabilities Compute for the Non-current
A: The current asset as,
Q: Which of the following statements regarding equity is not true? It is defined independently of…
A: The accounting equation states that assets equals to sum of liabilities and shareholders equity.
Q: Networking capital refers to the A) firms investment in total assets B) firms' investment in…
A: There are various heads of balance sheet including current assets, total assets etc
Q: The ownership claim on company’s assets A. Equity B.withdrawal C. Revenue. D. Expense
A: The Ownership claim on company's assets are called Equity. Equity Contains the Capital and retained…
Q: A. Compute the return on average total assets. B. Compute the return on average ordinary…
A: Average total assets refer to the value of assets that are to be recorded at the end of the…
Q: he second part of question two was missed: It said to calculate the firm's operating return on…
A: Return on assets and return on equity are the two profitability ratios showing the efficiency of the…
Q: A. What amount should be reported as basic earnings per share? B. What amount should be reported as…
A: Given, Net income is P11,000,000 Outstanding shares issued on Jan 2 is 1,500,000 On Jan 3 entered…
Q: Fundamental Analysis a. Price-to-Earnings Ratio b. Solvency Ratio c. Book Value Per Share d. Cash…
A: Technical analysis uses past movements of price and trends to predict the future movement. Hence,…
Q: How is the valuation of cuIrent assets affected if the company follows IFRS? OValuation is based on…
A: SOLUTION- HISTORICAL COST IS THE ORIGINAL OF AN ASSET , AS RECORDED IN AN ENTITY'S ACCOUNTING…
Q: A-.Create the ratio of fixed assets to long-term liabilities B-. Create the ratio of liabilities to…
A:
Q: Which of the following is an idicator of financial risk ? a) Net Sales / Total Assets b)…
A: The Financial ratio is mainly used by the investor for measuring the financial performance of the…
Q: What does the current ratio inform you about a company? A. The efficient use of assets. B. The…
A: Current Ratio : The current ratio is the relation between the current assets and current liabilities…
Q: The valuation method primarily used in the balance sheets of business entities is a. current exit…
A: Balance Sheet: It shows the financial position of the entity. All the assets and liabilities are…
Q: se? The balance sh
A: introduction: Financial statement such as balance sheet and profit and loss statement reflect the…
Q: 1. Why is there a cost associated with retained earnings? 2. What is Coleman's estimated cost of…
A: Given: The firm tax rate is 25% The current price of coleman’s is 12% The current price of firm is…
Q: d. Assets minus liabilities. e. The financial statement indicating the profitability of the business…
A: Solution:- d) Discussion of term Asset minus Liabilities as follows under:-
Q: equired: repare the following: • Statement of profit and loss o Statement of changes in equity •…
A: Statement of Profit and loss The purpose of preparing the statement of profit and loss account which…
Q: Liquid assets is determined by Select one: a. Current assets - current liabilities O b. Current…
A: Liquid assets are the assets which is just equal to cash equivalents.
Q: What is Return to Equity? Interest paid on debt Revenue minus Costs Only Retained Earnings All of…
A: Return on equity means the net income earned as compared to shareholders equity. The formula for…
Q: Decreases equity. Represents the amount of assets owners put into a business. Equals assets minus…
A: Income statement is the financial statement that helps the users to know the profitability position…
Q: Please answer with explanations asset turnover, return on total assets, return on stockholders…
A: Asset Turnover ratio represents the contribution of assets in revenue creation. Return on Assets…
Q: n analyzing a company’s financial statements, which financial statement would a potential investor…
A: Introduction:- Financial statements are reports that summarize important financial accounting…
Q: mpany's working capital come from which of the following financial statements? Select one:
A: The right answer is option b. Balance sheet
Q: Which of the following is the correct Basic Accounting Equation Oa ASSET + LIABILITIES= STOCK…
A: Accounting equation depicts the relationship between liabilities, assets and stockholders' equity of…
Q: Which financial statement conveys a company’s ability to generate profits in the current period? a.…
A: Financial statements: Financial statements are condensed summary of transactions communicated in the…
Q: The profitability of the business will be shown in which of the following print-outs? Question 46…
A: Profitability of the business means the capacity of the business to earn profits after meeting all…
Q: Total asset turnover indicates the company's:
A: Formula: Asset Turnover Ratio= Sales RevenueTotal Assets
Q: Requirement General Journal General Ledger Trial Balance Fair Value Adj Transaction Analysis Fin St…
A: Journal Entry The purpose of providing the journal entry to enter the required transaction into…
Q: 1. Define comprehensive income. What are the ways companies can present comprehensive income? 2. How…
A:
Q: A set of financial statement includes Transaction, Statement of Profit or Loss (SOPL), Statement of…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: A. Other things being equal, which company appears to have the better liquidity position in terms of…
A: Financial ratios are those which provide a summary of the accounts of a company and helps an…
Q: Interpret the results: • Return on equity • Return on assets • Gross profit margin • Operating…
A: The financial ratios are used as a measure of the financial health of the company.
Q: Question 2 Which of the following is not a purpose of the income statement? O used to evaluate…
A:
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- The comparative financial statements of Global Technology are as follows: Review the worksheet RATIOA that follows these requirements. You have been asked to perform a ratio analysis of this company for 2012.Required:a. Calculate the following ratios for Sweets plc for 2021 and 2020, showing the formulas and workings:1- ROCE2- ROE3- Earnings per share4- Net profit margin5- Asset turnover6- Stock holding days7- Debtors collection period8- Current ratio9- Gearing ratio10- Interest coverHello! look at the attached images and answee the following points: (a) Calculate ratios for the year ended 31 December 2021 (showing your workings) for Primrose Plc, equivalent to those provided above. Return on year-end capital employed Net asset turnover Gross profit margin Net profit margin Current ratio Closing inventory holding period Trade receivables’ collection period viii. Trade payables’ payment period Dividend yield Dividend cover (b) Analyse the financial performance and position of Primrose Plc for the year ended 31 December 2021 compared to 31 December 2020. (c) Explain the uses and the general limitations of ratio analysis. Thank you a lot!
- Required:a. Calculate the following ratios for Sweets plc for 2021 and 2020, showing the formulas and workings:4- Net profit margin5- Asset turnover6- Stock holding days7- Debtors collection period8- Current ratio9- Gearing ratio10- Interest coverVII. Direction: Compute and interpret. The following comparative financial statements are provided by Avatar Industries. You were asked to compute the different financial ratios and provide your interpretations with regards to profitability, efficiency, liquidity and solvency of the company. Use the Answer Sheet template below to input your answer and solution. AVATAR INDUSTRIES AVATAR INDUSTRIES Comparative Statement of Financial Position For the years 2019 and 2018 Comparative Income Statement For the years 2019 and 2018 2019 2018 2019 2018 ASSETS Current Assets: Sales P200,000 P210,000 Cash & Cash Equivalent P65,000 P70,000 Sales Returns and Allowances 40,000 25,000 Accounts Receivable 40,000 35,000 Net Sales 160,000 185,000 Marketable Secuities 40,000 35,000 Cost of Goods Sold 100,000 115,625 Inventory 100,000 80,000 Gross Profit 60,000 69,375 Total Current Assets 220,000 200,000 160,000 P445,000 P380,000 245,000 Operating Expenses: Fixed Assets Selling Expenses 22,000 25,000 Total…Hello! look at the attached images and answer: (a) Calculate ratios for the year ended 31 December 2021 (showing your workings) for Primrose Plc, equivalent to those provided above. i. Return on year-end capital employed ii. Net asset turnover iii. Gross profit margin iv. Net profit margin v. Current ratio vi. Closing inventory holding period vii. Trade receivables’ collection period viii. Trade payables’ payment period ix. Dividend yield x. Dividend cover (b) Analyse the financial performance and position of Primrose Plc for the year ended 31 December 2021 compared to 31 December 2020. (c) Explain the uses and the general limitations of ratio analysis. Thanks a lot!
- VII. Direction: Compute and interpret. The following comparative financial statements are provided by Avatar Industries. You were asked to compute the different financial ratios and provide your interpretations with regards to profitability, efficiency, liquidity and solvency of the company. Use the Answer Sheet template below to input your answer and solution. AVATAR INDUSTRIES AVATAR INDUSTRIES Comparative Statement of Financial Position For the years 2019 and 2018 Comparative Income Statement For the years 2019 and 2018 2019 2018 2019 2018 ASSETS Current Assets: Sales P200,000 P210,000 Cash & Cash Equivalent P65,000 P70,000 Sales Returns and Allowances 40,000 25,000 Accounts Receivable 40,000 35,000 Net Sales 160,000 185,000 Marketable Securities 40,000 35,000 Cost of Goods Sold 100,000 115,625 Inventory 100,000 80,000 Gross Profit 60,000 69,375 Total Current Assets 245,000 220,000 Operating Expenses: Fixed Assets 200,000 160,000 Selling Expenses 22,000 25,000 Total Assets P445,000…Select the Income Statements and Balance Sheets of Aramco Saudi from the calculate the following financial ratios: a. Long-term debt ratios b. Total debt ratio c. Times interest earned d. Cash coverage ration e. current ratio f. Quick ratio g. Operating profit margin h. Inventory Turnover i. Days in inventory j. Average collection period k. Return on equity I. Return on assets m. Payout rationsCalculate the following ratios based on the balance sheet, income statement and cash flow prepared in question ROE Return on Capital Employed (post-tax) Net Profit Margin EBITDA Margin Effective Tax Rate Operating Cost Ratio Gross Profit Margin Total Asset Turnover Ratio Fixed Asset Turnover Ratio Receivables Turnover Ratio Leverage Ratio [Avg. Total Assets / Avg. Total Equity] FCF / EBITDA Interest Coverage Ratio Debt Service Coverage Ratio Basic EPS (Assume Face Value of each share is INR 10) Debt : Equity Ratio Income Statement (INR Cr) Units Mar/14 Saleable Units 4,570 Revenues Gross Revenues INR Cr 2,116 Less: Environment Cess INR Cr 5 Net Revenues INR Cr 2,121 Growth (%) -1.9% Expenses O&M Expenses (% of Project Costs) INR Cr 146 YoY Escalation 5.72% EBITDA INR Cr 1,974 Margin (%) 93.1% Book Depreciation INR Cr 439 Interest Expenses INR…
- Analyze the financial statements of the company to you in terms of: 1. Debt Management Ratio * TIE Ratio or Time Interest Earned Ratio 2. Asset Management Ratio *Inventory Turnover Ratio *Fixed Asset Turnover Ratio *Total Asset Turnover Ratio 2020 Analysis BUT also compare with 2018 - 2019. Show solution on computaion.Prepare a financial statement analysis in terms of liquidity, solvency, profitability and efficiency of the following company. Financial Ratios Fiscal Year Ended Previous Fiscal Year Formula Dec 31, 2019 Dec 31, 2018 Liquidity Analysis Ratios: Current Assets / Current Liabilities Current Ratio or 1.46 1.36 Working Capital Ratio (Current Assets - Inventory - Prepayments) / Current Liabilities Quick Ratio 0.96 0.86 Solvency Ratio Total Assets / Total Liabilities 1.46 1.44 Financial Leverage Ratios Debt Ratio Total Debt/Total Assets 0.47 0.48 Total Debt/Total Stockholders Equity Debt-to-Equity Ratio 1.48 1.57 Earnings Before Interest and Taxes (EBIT) / Interest Charges Total Assets / Total Stockholders' Equity Interest Coverage 2.38 2.61 Asset to Equity Ratio 3.16 3.28 Profitability Ratios Gross Profit Margin Sales - Cost of Goods Sold or Cost of Service / Sales 19.76 19.43 Net Profit Margin Net Profit / Sales 11.34 11.42 Net Income / Total Assets 2.67 2.9 Return on Assets Net Income /…You are provided with the Income Statement and the Balance Sheet of HTS software, Inc. for 2011. Required: (b) Analyze the current financial position for the company from a time series and cross section viewpoint. (c) Break your analysis into an evaluation of the firm’s liquidity, activity, debt, profitability and market ratios. Historical and Industry Average Ratios HTS Software , Inc. Ratio 2010 2011 Industry2011 Current Ratio 2.6 2.08 2.7 Quick Ratio 1.8 1.32 1.75 Inventory Turnover 4.5 6 4.7 Average Collection Period 40days 9.125 42 days Total Asset Turnover 1.2 1.69 1 Debt Ratio 20% 28.2% 21% Times Interest Earned 9 5.9% 8.9 Gross Profit Margin 43% 42.8% 44% Operating Profit Margin 30% 25.5% 32% Net Profit Margin 20% 17% 21% Return on total assets 12% 4.11% 13% Return on Equity Price/Earnings Ratio 15% 7.3 19% 4.4 16% 8…