College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN: 9781305666160
Author: James A. Heintz, Robert W. Parry
Publisher: Cengage Learning
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Chapter 24, Problem 1SEA
(a)
To determine
Compute the quick ratio of Incorporation CKC.
(b)
To determine
Compute the
(c)
To determine
Compute the
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Margaret O'Flaherty, a portfolio manager for MCF Investments, is considering investing in Alpine Chemical 7% bonds, which mature in
10 years. She asks you to analyze the company to determine the riskiness of the bonds.
Alpine Chemical Company Financial Statements
Years Ended December 31,
($ in millions)
20X1
20X2
20X3
20X4
20X5
20X6
Assets
Cash
$ 55
$
1,637
2,021
190
$
2,143
1,293
157
249
$
1,394
1,258
3,493
1,322
Accounts receivable
3,451
1,643
2,087
Inventories
945
Other current assets
17
27
55
393
33
171
5,097
6,181
Current assets
3,114
5,038
2,543
2,495
3,986
5,757
3,138
3,865
2,707
5,619
2,841
2,778
5,265
4,650
2,177
2,473
Gross fixed assets
7,187
3,893
3,465
2,716
Less: Accumulated depreciation
Net fixed assets
2,619
3,294
Total assets
$6,338
$5,609
$5,485
$6,605
$7,813
$8,559
Liabilities and net worth
Notes payable
Accounts payable
$1,300
338
$
525
2$
750
$1,750
$1,900
673
638
681
743
978
Accrued liabilities
303
172
359
359
483
761
Current liabilities
1,501
1,985
1,997
1,457…
Find the following using the data bellowÂ
Accounts receivable = 111,100,000
Current assets = 316,500,000
 Total assets = 600,000,000
A. Return on assets
B. Common equity
C .Quick ratio
Required:
Compute the following: (For Requirements 1 to 4, enter your percentage answers rounded to 2 decimal places (i.e., 0.1234 should
be entered as 12.34).)
1. Gross margin percentage.
2. Net profit margin percentage.
3. Return on total assets.
4. Return on equity.
5. Was financial leverage positive or negative for the year?
1. Gross margin percentage
%
2. Net profit margin percentage
%
3. Return on total assets
%
4. Return on equity
%
5. Financial Leverage
Chapter 24 Solutions
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Ch. 24 - A comparison of amounts for the same item in the...Ch. 24 - Prob. 2TFCh. 24 - Prob. 3TFCh. 24 - Prob. 4TFCh. 24 - Prob. 5TFCh. 24 - Prob. 1MCCh. 24 - Prob. 2MCCh. 24 - Working capital is a measure of (a) liquidity. (b)...Ch. 24 - Prob. 4MCCh. 24 - Prob. 5MC
Ch. 24 - Prob. 1CECh. 24 - Prob. 2CECh. 24 - Compute the following profitability measures for...Ch. 24 - Prob. 4CECh. 24 - Prob. 5CECh. 24 - Prob. 6CECh. 24 - Prob. 1RQCh. 24 - Prob. 2RQCh. 24 - Prob. 3RQCh. 24 - Prob. 4RQCh. 24 - Prob. 5RQCh. 24 - Prob. 6RQCh. 24 - Prob. 7RQCh. 24 - Prob. 8RQCh. 24 - Prob. 9RQCh. 24 - Prob. 10RQCh. 24 - Prob. 11RQCh. 24 - Prob. 12RQCh. 24 - Prob. 13RQCh. 24 - Prob. 1SEACh. 24 - Prob. 2SEACh. 24 - ANALY SIS OF PROFITABILITY Based on the financial...Ch. 24 - ANALY SIS OF LEVERAGE Based on the financial...Ch. 24 - Prob. 5SEACh. 24 - Prob. 6SEACh. 24 - Prob. 7SEACh. 24 - Prob. 8SPACh. 24 - Prob. 9SPACh. 24 - RATIO ANALYSIS OF COMPARATIVE FINANCIAL STATEMENTS...Ch. 24 - Prob. 1SEBCh. 24 - ANALYSIS OF ACTIVITY MEASURES Based on the...Ch. 24 - Prob. 3SEBCh. 24 - Prob. 4SEBCh. 24 - Prob. 5SEBCh. 24 - Prob. 6SEBCh. 24 - Prob. 7SEBCh. 24 - Prob. 8SPBCh. 24 - Prob. 9SPBCh. 24 - RATIO ANALYSIS OF COMPARATIVE FINANCIAL STATEMENTS...Ch. 24 - Prob. 1MPCh. 24 - This problem challenges you to apply your...
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