Financial Statements Analysis and Interpretations Instructions: 1. Using the provided data below, prepare a Statement of Financial Position - Vertical Analysis. 2. Compute for the following financial ratios and provide interpretation for each item. a. Current Ratio b. Working Capital c. Debt-to-Equity Ratio d. Debt Ratio e. Asset Turnover Ratio| 3. You may use any desired business name. 4. Use the space provided for your answer. Given: 2017 R 358 950 00 2016 Accounts Davable 277 145.00
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- Evaluation: Financial Statements Analysis and Interpretations Instructions: 1. Using the provided data below, prepare a Statement of Financial Position - Vertical Analysis. 2. Compute for the following financial ratios and provide interpretation for each item. a. Current Ratio b. Working Capital c. Debt-to-Equity Ratio d. Debt Ratio e. Asset Turnover Ratio 3. You may use any desired business name. 4. Use the space provided for your answer. Given: 2017 2016 P 358,950.00 P 184,560.00 P 365,450.00 P 450,355.00 P 252,260.00 P 653,550.00 P 300,000.00 P 800,000.00 P 943,105.00 P 65,000.00 P 277,145.00 P 68,505.00 P 285,000.00 P 235,000.00 P 345,650.00 P 745,000.00 P 150,000.00 P 700,000.00 P 800,000.00 85,000.00 Accounts Payable Accrued Expenses Accounts Receivable Cash Inventory Fixed Assets Marketable Securities Mortgage Payable Owner's Capital Prepaid InsuranceQuestion 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…GJ Company Trial Balance January 31, 2021 Account Titles Debit Credit Cash 33, 450 Accounts receivable – R. Gil Accounts receivable – M. Soriano 1200 Repair tools 30, 000 Repair supplies 15, 000 Furniture and fixtures 16, 500 Service equipment Accounts payable – Cruz furniture 120, 000 Notes payable – Cruz furniture G. Alajar, Capital G. Alajar, Drawing 8, 250 190, 000 3, 500 Service income 28, 400 Advertising expense 1, 500 Salaries expense 2, 000 Utilities expense 1, 500 Rent expense 2, 000 Total 226, 650 226, 650
- a)Please calculate all the ratios of companies - Profitability ratios(Profit margin, Return on assets , Return on equity) , Asset utilization ratios (Receivables turnover, Average collection period, Inventory turnover, Fixed asset turnover, Total asset turnover) Liquidity ratios (Current ratio, Quick ratio) & Debt utilization ratios (Debt total assets, Times interest earned, Fixed charge coverage) b) Calculate all your ratios in and Excel File. You need to show all your calculations in excel file but use the calculated value in your main report. c) Discuss each of the ratios for two years and explain their implications for the company. Analyze the ratios that you have calculated d) Use graphs, charts in your analysis.a)Please calculate the all ratios of companies - Profitability ratios(Profit margin, Return on assets ,Return on equity) Asset utilization ratios (Receivables turnover, Average collection period, Inventory turnover, Fixed asset turnover, Total asset turnover) Liquidity ratios (Current ratio, Quick ratio) & Debt utilization ratios (Debt total assets, Times interest earned, Fixed charge coverage) b) Calculate all your ratios in and Excel File. You need to show all your calculations in excel file but use the calculated value in your main report. [Note:The answer should be based on "Canadian national railway annual report 2016 and 2017"]5. Know the calculations for all of the following ratios (see ratio sheet that can be used on the exam) and know the category (listed in Question 4) they fall in: Formula Category/Use Ratio Working Capital Current Assets - Current Liabilities Net credit sales/Average Accounts Receivable Turnover accounts receivable Asset Turnover Net sales/Average total assets Net income/Average total stockholders' equity Total liabilities/Total stockholders equity Net income/Net sales Return on Equity (ROE) Debt to equity Return on Sales (ROS) (also known as Net Margin Current Assets/Current Liabilities Cost of goods sold/Average inventory Quick assets/Current Current Ratio Inventory Turnover Quick Ratio liabilities Dividend Yield Dividends per share/Market price per share Net earnings available for common stock/Number of outstanding common shares Net income/Average total Earnings per Share (EPS) Return on Investment (ROI) assets Price Earnings Ratio (P/E) Market price per share/Earnings per share…
- FE3 - Show your work (a) Define the current ratio and return on assets ratio. (b) State what financial management problem each of these financial ratios could be used to identify. (c) What would be a good benchmark to use for each of these financial ratios?Vertical analysis: a. Is also known as common-size analysis b. Is a technique for evaluating financial statement data that expresses each item in a financial statement as a percentage of a base amount c. All of the above.Please Complete the Following: 1. Complete a vertical and horizontal analysis on the tabs labeled "Balance Sheet" and "Income Statement", use total assets on the balance sheet and net sales on the income statement for your vertical analysis. 2. Using the balance sheet and income statement, complete the ratios on the tab labeled "Ratios" 3. Answer the final OBSERVATION QUESTION (listed under Ratios calculations) Consolidated Balance Sheets (USD $) 12/31/2020 Vertical Analysis 12/31/2019 Vertical Analysis Horizontal Analysis In Millions, unless otherwise specified Current Assets: Cash and Cash Equivalents $1,723 $1,929 Receivables, net 1,484 1,398 Merchandise Inventories 11,079 11,057 Other Current Assets 1,016 895 Total Current Assets 15,302 15,279 Property and Equipment, at…
- Required: Evaluate the performance of RBL Paving Company using the below ratios. Define each ratio, perform the calculation, and provide an explanation of the result. a. Return on equityb.Total assets turnoverc. Return on assetsd. Current ratioe. Receivables turnoverI need assistance on the following regarding the attached balance sheet and income statement: Required: a) Calculate the following financial ratios for 2016 and 2017 13. Debt-to-equity ratio 14. Times-interest-earned ratio 15. Operating-cash-flow-to-capital-expenditures ratioVII. 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…