Web Structure Inc. calculated the ratios shown below for 2023 and 2022: Required: 1. & 2. Identify whether the change in the ratios from 2022 to 2023 is favourable (F) or unfavourable (U"), and calculate the 2023 ratios for Alberta Playground Inc. Including a comparison against the industry averages. (Select the option "Neither For U" If the option Favorable or Unfavorable is not applicable.) Current ratio Quick ratio Accounts receivable turnover Days' sales uncollected Inventory turnover Days' sales in inventory Total asset turnover. Debt ratio Times interest earned Profit margin Gross profit ratio 2023 1.14:1 1.05:1 16 41 7.2 55 3.8 73 2.8 18.5 15.0 2022 1.03 1 0.90 1 23 37 7.6 43 2.4 53 9.3 21.0 13.5 Trend Industry Average 1.6:1 1.1:1 16 times 21 days 5 times 70 days 2.3 times 35 % 50 times 14 % 18 % Comparison to Industry Average

Web Structure Inc. calculated the ratios shown below for 2023 and 2022: Required: 1. & 2. Identify whether the change in the ratios from 2022 to 2023 is favourable (F) or unfavourable (U"), and calculate the 2023 ratios for Alberta Playground Inc. Including a comparison against the industry averages. (Select the option "Neither For U" If the option Favorable or Unfavorable is not applicable.) Current ratio Quick ratio Accounts receivable turnover Days' sales uncollected Inventory turnover Days' sales in inventory Total asset turnover. Debt ratio Times interest earned Profit margin Gross profit ratio 2023 1.14:1 1.05:1 16 41 7.2 55 3.8 73 2.8 18.5 15.0 2022 1.03 1 0.90 1 23 37 7.6 43 2.4 53 9.3 21.0 13.5 Trend Industry Average 1.6:1 1.1:1 16 times 21 days 5 times 70 days 2.3 times 35 % 50 times 14 % 18 % Comparison to Industry Average

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Set out below are the financial statements for KLEE Inc. Limited: Profit and Loss Accounts ($) 2015 (S000's) 2016 (5000's) Sales 285 200 Profit before interest and tax 92 84 Interest 10 10 Profit on ordinary activities before taxation 82 74 Тахабоn 32 29 50 Profit on ordinary activities after taxation Dividends Retained profit 15 15 35 30 Balance Sheets ($) Fixed Assets Fixed Assets 24 58 Current Assets Stock 25 20 Debtors Cash 21 20 3 49 48 Current Liabilities Trade Creditors 18 18 Тахafon payable Proposed dividend 11 8 15 15 42 41 Net Current Assets 7 5 31 61 Creditors: Amounts falling due after more than one year 10% Debentures 10 10 Total Net Assets 21 51 Shareholders' Funds Share Capital Profit and loss account 5 5 18 48 21 51
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a) Based on the information provided, calculate the following ratios for the years ended 31December 2021 and 2020. You should give the formula for each ratio, in addition to your calculation.I. Gross profit marginII. Operating profit marginIII. Return on equityIV. Current ratioV. Gearing
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Requirements: a. Prepare horizontal analysis based on the above statements presented (for percent: round of your answers to 2 decimal places) Music Lover, Inc.xlsx b. Evaluate the company's financial position and results of operation using the comparative statement analysis i. Short-term solvency analysis ii. Long-term financial position analysis iii. Operating efficiency and profitability analysis
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