A.2 Starkey Company's sales, current assets, and current liabilities (all inthousands of dollars) have reported as follow over the last five years (Year 5is the most recent year):SalesCurrent assets:CashAccounts receivableInventoryTotal current assetsCurrent liabilitiesRequired:Year 5$5,625$Year 4$5,40064 $560896Year 3 Year 2$4,950 $4,72572 $ 84496880$88416864Year 1$ 4,50080432400816800$ 1,332 $1,368 $ 1,280300$1,520$1,448$ 390 $ 318 $ 324 $ 330 $1. Express all of the asset, liability, and sales data in trend percentages.(Show percentages for each item.) Use Year 1 as the base year, andcarry computations to one decimal place.2. Comment the results of your analysis.

Trend Analysis - Trend Analysis is a useful tool of analysis of over the year performance.…

A.2 Starkey Company's sales, current assets, and current liabilities (all in thousands of dollars) have reported as follow over the last five years (Year 5 is the most recent year): Sales Current assets: Cash Accounts receivable Inventory Total current assets Current liabilities Required: Year 5 $5,625 $ Year 4 $5,400 560 896 64 $ 72 $ Year 3 Year 2 $4,950 $4,725 496 880 84 432 816 $ 88 416 864 Year 1 $ 4,500 $ 400 800 $1,520 $1,448 $1,332 $1,368 $ 1,280 $ 390 $ 318 $ 324 $330 $ 300 80 1. Express all of the asset, liability, and sales data in trend percentages. (Show percentages for each item.) Use Year 1 as the base year, and carry computations to one decimal place. 2. Comment the results of your analysis.

A.2 Starkey Company's sales, current assets, and current liabilities (all in thousands of dollars) have reported as follow over the last five years (Year 5 is the most recent year): Sales Current assets: Cash Accounts receivable Inventory Total current assets Current liabilities Required: Year 5 $5,625 $ Year 4 $5,400 560 896 64 $ 72 $ Year 3 Year 2 $4,950 $4,725 496 880 84 432 816 $ 88 416 864 Year 1 $ 4,500 $ 400 800 $1,520 $1,448 $1,332 $1,368 $ 1,280 $ 390 $ 318 $ 324 $330 $ 300 80 1. Express all of the asset, liability, and sales data in trend percentages. (Show percentages for each item.) Use Year 1 as the base year, and carry computations to one decimal place. 2. Comment the results of your analysis.

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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1n. Account
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Assume a company had net Income of $72,000 and provided the following excerpts from its balance sheet: This Year Last Year Current assets: $40,000 $53,000 $13,000 $46,000 $50,000 $11,000 Accounts receivable Inventory Prepaid expenses Current liabilities: $38,000 $18,000 $13,000 $44,000 $15,000 $10,000 Accounts payable Accrued liabilities Income taxes payable If the company did not sell any noncurrent assets during the period and the credits to its accumulated depreciation account were $21,000, then based solely on the informatlon provlded, the company's net cash provided by (used in) operating activities would be: Multiple Cholce $94,000. $52,000. $68,000. $92,000.
The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: Beginning balances: Inventory $200,000 Accounts receivable 300,000 Ending balances: Inventory 250,000 Accounts receivable 400,000 Cash 100,000 Marketable securities (short-term) 200,000 Prepaid expenses 50,000 Accounts payable 175,000 Taxes payable 85,000 Wages payable 90,000 Short-term loans payable 50,000 During the year, Arnn had net sales of $2.45 million. The cost of goods sold was $1.3 million. Required: When required, round your answers to two decimal places. Assume 365 days per year. 1. Compute the current ratio. 2. Compute the quick or acid-test ratio. 3. Compute the accounts receivable turnover ratio. times 4. Compute the accounts receivable turnover in days. days 5. Compute the inventory turnover ratio. times 6. Compute the inventory turnover in days. days
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