Using the financial ratios calculated from the 2012 annual report of a given company, assess the short-term liquidity, operating efficiency, capital structure, long-term solvency and profitability of the company.
Q: Using the fiscal year end 2019 annual report for General Mills, Inc. and the figures from the 2017…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: Profitability Ratios:
A: Ratio: It is a number expressed in terms of another to establish relationship between them.
Q: Assuming a company has net income for the year, the end of year dollar balance in the "Total…
A: Balance sheet are prepared to show the financial position of the company during the accounting…
Q: The table that follows summarizes the financial performances of four companies in the year 2012.…
A: Return on equity (ROE): This financial ratio evaluates a company’s efficiency in using stockholders’…
Q: Using the fiscal year end 2020 annual report for General Mills, Inc. and the figures from the 2020…
A: Ratio analysis is a quantitative method of gaining insight into a company's liquidity, operational…
Q: Asar Corporation had a current ratio of 2.0 at the end of 2013. Current assets and current…
A: Note: The question has a typo, instead of 2012, it should be 2014, as the changes would occur next…
Q: What do the following ratios reveal about the financial health of a company? And how do I calculate…
A: Liquidity Ratios: These ratios play an important role in measuring or analyzing the short term…
Q: Refer to the preceding financial statements and other information. Calculate the following ratios…
A: The ratio is a measure of the relationship between two variables. In accounting, ratio analysis is…
Q: Required: Compute and interpret the following financial ratios of the company for Year 5: a.…
A: Acid test Ratio Return on Assets (ROA) Return on common stockholders’ equity (ROE) Earnings per…
Q: Please answer the question below according to the information given in the attachment: a) Using the…
A: Net working capital Current ratio Quick ratio Inventory turnover Average collection period Total…
Q: Six measures of solvency or profitabilityThe following data were taken from the financial…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Compute the profitability and operating efficiency ratios for 2014 of Very Good Company Compute for…
A: Given, The financial statements of a company Required: To calculate the profitability ratios,…
Q: Financial ratios: Liquidity. The financial statements for Tyler Toys, Inc. are shown in the popup…
A: Liquidity ratios are a measure of a companies ability to pay its liabilities with the funds…
Q: What are some of the ratios used in evaluating the Liquidity of a company from it's annual financial…
A: there are four ratios used in evaluating the liquidity of a company 1)current ratio 2) quick ratio…
Q: The condensed financial statements of John Cully Company, for the years ended June 30, 2017 and…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: Following are the financial statements of AB Ltd. for 2010. From the aforementioned table,…
A: The accounting ratio compares financial data between companies which are used for analyzing the…
Q: The income statement, also known as the profit and loss (P&L) statement, provides a snapshot of the…
A: Earning before interest and taxes: It is the operating profit which exclude interest expenses and…
Q: Solve and perform the different financial ratios using the financial statements of XYZ Company for…
A: We can use the below mention formula to calculate the Current and Quick Ratio Current Ratio -…
Q: Which of the following statements is likely to be true, for a company making profits? Select one:…
A: All the transactions of the company that are happened during the year will be recorded first in the…
Q: Which of the following ratios helps in measuring the long term solvency of the company? Current…
A: Requirement ÷ratio helps in measuring the long term solvency of the company ANSWER ÷ correct…
Q: The following information is available for Buhler Company: Annual Data 2013 2012 Net sales…
A: 1. Average Total assets = (Beginning Total assets + Ending Total assets) / 2 = ($6,500,000 +…
Q: Financial ratios: Profitability. The financial statements for Tyler Toys, Inc. are shown in the…
A: The financial ratio is a tool or analyzing the financial statement that helps to analyze the overall…
Q: Calculate the following financial ratios for The Boeing Company. If not Applicable write N/A:…
A: 1.Return on shareholder's equity=Net income/Share holder's Equity 2.Return on Assets=Net…
Q: What is the firm's total debt ratio for 2011 using the above financial statements ?
A: In financial management, total debt ratio is used by financial institutions while providing debt…
Q: Which group of financial statement ratios best captures what investors think of a company’s past…
A: Market value ratios are those ratios which compares the fundamentals of the company with the…
Q: What is the value for "RETURNED ON INVESTED CAPITAL" in 2015 based on the income statement and…
A: The return on capital invested refers to the financial ratio between the net operating profit after…
Q: Which of the following ratios is used to measure the profit earned on each dollar invested in a…
A: Ratio analysis helps in analyzing the performance of the firm. The investors use ratios to determine…
Q: Using the fiscal year end 2019 annual report for General Mills, Inc. and the figures from the 2017…
A: "Since you have asked multiple sub part question we will solve the first three sub part question for…
Q: A company reported net income for fiscal 2016 of $7,215 million, retained earnings at the start of…
A: Retained earning means the an account where all transaction related to profit earned , dividend…
Q: he following information is available for Buhler Company: Annual Data 2013 2012 Net sales…
A: Answer a) Calculation of Gross Profit Percentage for 2013 Gross Profit Percentage = Gross Profit for…
Q: What do the following ratios reveal about the financial health of a company? And how do I calculate…
A: Long Term Debt Paying Ability Ratios are also known as Leverage or Capital Structure Ratios. These…
Q: Maggie’s Skunk Removal Corp.’s 2015 income statement listed net sales = $12.5 million, gross profit…
A: Calculation of Profit Margin, Gross Profit Margin, Operating Profit Margin, ROA and ROE:The profit…
Q: Based on this analysis how would I assess the financial stability and operational efficiency of this…
A: Acid Test Ratio reflects a firm's balance sheet whether it has sufficient short-term assets to cover…
Q: How would you respond if I said that? Income statements, on the other hand, provide an overview of a…
A: When a company's assets and liabilities are shown at a certain point, this is referred to as its…
Q: Using the financiaql statements of Top Glove Corporation Berhad for the year 2020, provide and…
A: Financial Ratios are the measures of the performance of a corporation and are used in the financial…
Q: The current ratio: a. Is used to help assess a company's ability to pay its debts in the near…
A: Current ratio is the ratio between current assets and current liabilities of the business. Current…
Q: Calculate the following financial ratios for The Boeing Company: Return on Shareholders’ Equity…
A: Ratio analysis is a quantitative method of gaining insight into a company's liquidity, operational…
Q: In analysing the financial statements of an entity, the following ratios were calculated: 2011…
A: Here in this question we are required to make analysis of all the ratios given in the question and…
Q: Measures of liquidity, Solvency, and Profitability The comparative financial statements of Marshall…
A: First three sub-parts of question is answered. Please resubmit question specifying any three…
Using the financial ratios calculated from the 2012 annual report of a given company, assess the short-term liquidity, operating efficiency, capital structure, long-term solvency and profitability of the company.
Step by step
Solved in 2 steps
- Exercise 13-3 (Algo) Computing and analyzing trend percents LO P1 Sales Cost of goods sold Accounts receivable Numerator: 2021 $501,535 253,218- 24,375 Numerator: Compute trend percents for the above accounts, using 2017 as the base year. For each of the three accounts, state whether the situation as revealed by the trend percents appears to be favorable or unfavorable. 2020 2019 $ 323,571 $ 251,906 163,436 18,897 129,253 17,198 2021: 2020: 2019: 2018: 2017: Is the trend percent for Net Sales favorable or unfavorable? Numerator: Trend Percent for Net Sales: 1 1 Denominator: Trend Percent for Cost of Goods Sold: Denominator: 2021: 2020: 2019: 2018: 2017: Is the trend percent for Cost of Goods Sold favorable or unfavorable? Trend Percent for Accounts Receivable: Denominator: -2018 $ 176,088 99,294 10,266 2021: 2020: 2019: 2018: 2017: Is the trend percent for Accounts Receivable favorable or unfavorable? 2017 $ 127,600 63,800 8,702 Trend percent Trend percent Trend percent ****at % % % %…Exercise 13-3 (Algo) Computing and analyzing trend percents LO P1 Sales Cost of goods sold. Accounts receivable 2021 $ 424,322 214,661 20,580 Numerator: 2020 $ 279,159 141, 180 16,303 2019 $ 218,948 112,924 15,042 Compute trend percents for the above accounts, using 2017 as the base year. For each of the three accounts, state whether the situation as revealed by the trend percents appears to be favorable or unfavorable. Trend Percent for Net Sales: 2021: 2020: 2019: 2018: 2017: Is the trend percent for Net Sales favorable or unfavorable? 2018 $ 153,648 78,724 8,973 Denominator: 2017 $ 116,400 58,200 7,973 11 Trend percent % % ge % % %Exercise 13-3 (Algo) Computing and analyzing trend percents LO P1 Sales Cost of goods sold Accounts receivable 2021: 2020: Numerator: 2019: 2018: 2017: 2021 $ 599,194 302,147 28,941 Compute trend percents for the above accounts, using 2017 as the base year. For each of the three accounts, state whether the situation as revealed by the trend percents appears to be favorable or unfavorable. Numerator: 2021: 2020: 2019: 2018: 2017: Is the trend percent for Net Sales favorable or unfavorable? Trend Percent for Net Sales: 1 1 1 2028 $ 389,087 196,344 22,684 1 1 2019 $ 320,236 163,468 21,840 1 Trend Percent for Cost of Goods Sold; 1 Denominator: Denominator: 2018 $ 216,376 109,938 12,701 2017 $159,100 79,558 10,930 Trend percent Trend percent % % % % % % % % %
- The comparative balance sheets of SandhillClothiers are as follows: Cash Accounts receivable Inventory Total assets Cash December 31, 2014 $58,800 31,360 45,080 Inventory Total assets Perform horizontal analysis for SandhillClothiers. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, eg. 12.1%) 2014 Accounts receivable 31,360 $58,800 588,000 45,080 2013 $41,160 19,600 37,240 December 31, 2013 $41,160 19,600 588,000 568,400 37,240 568,400 Amount Increase (Decrease) Percentage % % % %what does the percentages mean in vertical analysis? Year 4 % of Sales Year 3 % of Sales Assets Current Assets Cash $ 40,000 6.67 $ 36,000 6.67 Marketable Securities 20000 3.33 6000 1.11 Accounts Receivable 54000 9.00 46000 8.52 Inventories 135000 22.50 143000 26.48 Prepaid Items 25000 4.17 10000 1.85 Total Assets current 274000 45.67 241000 44.63 Investments 27000 4.50 20000 3.70 plant net 270000 45.00 255000 47.22 Land 29000 4.83 24000 4.44 Total Assets $ 600,000 100.00 $ 540,000 100.00 Liabilities and Stock equity Liabilities Current Liabilities Notes payable $ 17,000 2.83 $ 6,000 1.11 Accounts payable 113800 18.97 100000 18.52 salaries payable 21000 3.50 15000 2.78 Total current liabilities 151800 25.30 121000 22.41 Noncurrent liabilities…Sales Cost of goods sold Accounts receivable 2021: 2020: 2018: 2018: 2021: 20:20: Compute trend percents for the above accounts, using 2017 as the bese year. For each of the three accounts, state whether the situation as revealed by the trend percents appears to be favorable or unfavorable. Numerator: 2021: 2020: 2018: 2018: 2821 $ 553,453 284, 861 26,808 Numerator: Numerator: T 2017: Is the trend parcent for Net Sales favorable or unfavorable? I Trend Perent for Net Bales: I } J 2828 J I 184,986 21,060 2018: 2018: 2017: Is the trend percent for Cost of Goods Sold favorable or unfavorable? Trend Percent for Cost of Goods Bold: Denominator: 2019 $ 295,790 154,003 20,232 T " I Denominator: Trend Perent for Accounts Receivable: Denominator: 2018 $ 283,903 185,586 11,893 2017: Is the trend percent for Accounts Receivable favorable or unfavorable? 11 11 "H |||||| 11 11 11 2817 $ 148,000 75,939 10,170 11 Trend percent Trend parcant Trend percent aan | 20
- Required: 1. Express all of the asset, liability, and sales data in trend percentages. Use Year 1 as the base year. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) Sales Current assets: Cash Accounts receivable, net Inventory Total current assets Current liabilities Year 1 % % % % % % Year 2 % % % % % % Year 3 % % % % % % Year 4 % % % % % Year 5 % % % % %Q. Calculate the current assets and current liabilities from the data given below. Current ratio. 1.8 Quick ratio. 1.2 Inventory turnover ( on c.g.s). 12 Gross profit rate. 25% Credit period. 1month Working capital. 640000Compute the following ratios: # Metric 1 Current Ratio Formula Meaning Expressed Current Year Numerator Denominator Answer as 1 Year Ago Numerator Denominator Answer Metric Improved / Worsened Ratio:1 Current Assets / Current Measures the short-term Liabilities 2 Quick Ratio (Cash + Short Term 3 Day Sales Outstanding 4 Days in Inventory Investments + Accounts Receivable) / Current Liabilities (Accounts Receivable/ Sales)*365 (Inventory / Cost of goods sold)*365 5 Debt Equity Ratio Total Liabilities / Total Equity debt-paying ability of the company. A higher current ratio suggests a strong ability to meet current obligations. This ratio is like the current ratio but Ratio:1 excludes current assets such as inventories and prepaid expenses that may be difficult to quickly convert into cash Measures how quickly a company collects its accounts receivable. A lower number is better as it converts AR to cash quicker # of days Measure inventory liquidity. A high # of days. number indicates too…
- 1 Wook Hint Print ♫ References 6 Sales Cost of goods sold Accounts receivable Numerator: 2821 $ 522,732 269,043 25,300 Numerator: Compute trend percents for the above accounts, using 2017 as the base year. For each of the three accounts, state whether the situation as revealed by the trend percents appears to be favorable or unfavorable. Type here to search 1 2021: 2020: 2019: 2018: 2017: Is the trend percent for Net Sales favorable or unfavorable? Numerator: 2020 $ 348,488 179,479 20,456 Trend Percent for Net Sales: 1 T 1 1 1 1 2021: T 2020: 1 2019: T 2018: 1 2017: 1 Is the trend percent for Cost of Goods Sold favorable or unfavorable? 2019 $ 279,918 146,254 19,146 Trend Percent for Cost of Goods Sold: 1 Denominator: Denominator: Trend Percent for Accounts Receivable: I Denominator: 2021: 2020: 2019: 2018: 1 2017: 1 Is the trend percent for Accounts Receivable favorable or unfavorable? 1 1 1 O 2018 $ 195,059 101,230 11,352 = = M = = = = = = = = = 2017 $ 148,900 75,939 10, 200 Trend…Calculate a base-weighted and current- weighted index. Years 1 is base and year 2 is current. Number of units bought Price paid per unit ($) Item 7. Year 1Year 2Year 1Year 2 A 121 141 $9 $10 B 149 163 $21 $23 C 173 182 $26 $27 D 194 103 $31 $33Year Sales Trend % Gross Profit Trend %Net Profit/ Loss Trend % EBIT Trend % 2016 2017 2018 2019 2,254,369 2,074,171 1,835,364 2,381,211 Write the interpretation and the recommendations based on the findings from the trend analysis table 1,233,301 1,426,561 1,203,846 1,144,016 314,933 572,753 544,426 407,045 100% 100% 489,009 548,019 463,654 346,329 100% 100% 92% 116% 112% 182% 81% 98% 95% 173% 106% 93% 71% 129%