A firm has sales of $1,070, net income of $211, net fixed assets of $514, and current assets of $270. The firm has $86 in inventory What is the common size balancesheet value of inventory?Multiple Choice31.85%10.97%16.73%4076%

Common Size Balance sheet value of Inventory: This number shows the proportion of total assets that…

A firm has sales of $1,070, net income of $211, net fixed assets of $514, and current assets of $270 The firm his $86 in inventory What is the common size balance sheet value of inventory? Multiple Choice 31.85% 10.97% 16.72%

A firm has sales of $1,070, net income of $211, net fixed assets of $514, and current assets of $270 The firm his $86 in inventory What is the common size balance sheet value of inventory? Multiple Choice 31.85% 10.97% 16.72%

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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Question

A firm has sales of $1,070, net income of $211, net fixed assets of $514, and current assets of $270. The firm has $86 in inventory What is the common size balance
sheet value of inventory?
Multiple Choice
31.85%
10.97%
16.73%
4076%

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Ratios Calculated Year 1 Year 2 3.64 +Q+ Price-to-cash-flow 5.20 Inventory turnover 10.40 Debt-to-equity 0.70 8.32 0.56 Year 3 2.91 6.66 0.45 Based on the preceding information, your calculations, and your assumptions, which of the following statements can be included in your analysis report? Check all that apply. Cold Goose Metal Works Inc.'s ability to meet its debt obligations has improved since its debt-to-equity ratio decreased from 0.70 to 0.45. A decline in the inventory turnover ratio can be explained by the new Inventory management system that the company recently adopted, which led to more efficient inventory management. A decline in the debt-to-equity ratio implies a decline in the creditworthiness of the firm. A plausible reason why Cold Goose Metal Works Inc.'s price-to-cash-flow ratio has decreased is that investors expect lower cash flow per share in the future.
A business achieves a margin of 25% on sales. Opening inventory was $36,000, closing inventory was $56,000 and purchases totalled $600,000. Calculate the sales for the period. A $773,333 B $725,000 C $826,666 D $800,000
Rakesh
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…
Metropolitan Republic Return on Assets 19.96% 8.98% Profit Margin 15.45% 5.51% Asset Turnover 1.29 1.63 Return on Equity 52.73% 32.66% Equity Multiplier 2.64 3.64 Acid-Test Ratio 0.50 0.22 Current Ratio 0.99 0.85 Inventory Turnover 5.23 6.27 Times Interest Earned 18.49 15.49 Please answer Question 2: Evaluate and compare two companies