2) Ratios Based on the information given in picture #1, complete the following ratios for the last TWO years and indicate whether the trend is favorable or unfavorable. Note percentages and times should be to one decimal place (e.g. 14.8%; 5.8x)Liq./Solv. Ratios Current Yr. Prior Yr. Fav/Unfav.Inventory Turnover (X) {Cost of Goods Sold/Average Inventories} Day's Sales in Inventories (days){Ending Total Inventories/Cost of Goods Sold x 365} Debt Ratio (%){Total Liabilities / Total Assets } Liguidity/Solvency Ratios (continued)FAVORABLECurrent YearPrior Year(UNFAVORABLE)(C) Inventory Turnover (X){Cost of Goods Sold/ Average Inventories}(C) Days' Sales in Inventories (days){Ending Total Inventories/COGS X 365}(G) Debt ratio (%){Total Liabilities / Total Assets} 1- Key Statistices: (OMIT ALL ZEROS 000); if none, leave blankIncome Statement(2020)Current Year406,785(201G)Prior YearIncrease(Decrease)Sales/Revenue297,897T 108, 888+ 75,69897,285 + 33,190(12,443) (40,30 a) 3247.37/-387.347276,310200, 612Cost of Goods Sold130,475(s2,752)Gross IncomeNet IncomeBalance SheetEnd ofCurrent YearEnd ofIncrease (Decrease)Prior Year275,988 (116, 061) -42%.40, 080 (410s)-10%.40,121 491.Cash & Short-term investments|59,127Total Accounts Reccivable35,975veatories12, 귀구81,596332, 226Net Property, Plant & Equipment 129,869403, 594 (74,366) -18/.47/47 니 +82,39S 1747.Total Current AssetsIntangible Assets4 SI, 923 +i br077 4%26,923 + 2611484구,697 +41, 2구 067,833 +3 3,076 497384,090 (14,993) -47.Total Assets46४,००6977.Accounts Payable53,071877.88,967Total Current LiabilitiesTotal Linbilities100,90aTotal Shareholders' Equity36구,097Asset Compoition:End of Current Year% of Total AssetsLargest Assets: (from above)Net property ,Plant1. tequipmeAAAcasn + Snort term2.iA Amen129869I54,127-42%.491.3. Innentoriey12/,717

Ratio - It is the comparison between two or more financial parameter to each other for analyzing the…

Answered: Based on the information given in…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

2) Ratios

Based on the information given in picture #1, complete the following ratios for the last TWO years and indicate whether the trend is favorable or unfavorable. Note percentages and times should be to one decimal place (e.g. 14.8%; 5.8x)

Liq./Solv. Ratios Current Yr. Prior Yr. Fav/Unfav.

Inventory Turnover (X)

{Cost of Goods Sold/

Average Inventories}

Day's Sales in Inventories (days)

{Ending Total Inventories/

Cost of Goods Sold x 365}

Debt Ratio (%)

{Total Liabilities / Total Assets }

Liguidity/Solvency Ratios (continued)
FAVORABLE
Current Year
Prior Year
(UNFAVORABLE)
(C) Inventory Turnover (X)
{Cost of Goods Sold/ Average Inventories}
(C) Days' Sales in Inventories (days)
{Ending Total Inventories/COGS X 365}
(G) Debt ratio (%)
{Total Liabilities / Total Assets}

1- Key Statistices: (OMIT ALL ZEROS 000); if none, leave blank
Income Statement
(2020)
Current Year
406,785
(201G)
Prior Year
Increase(Decrease)
Sales/Revenue
297,897
T 108, 888
+ 75,698
97,285 + 33,190
(12,443) (40,30 a) 3247.
37/-
387.
347
276,310
200, 612
Cost of Goods Sold
130,475
(s2,752)
Gross Income
Net Income
Balance Sheet
End of
Current Year
End of
Increase (Decrease)
Prior Year
275,988 (116, 061) -42%.
40, 080 (410s)-10%.
40,121 491.
Cash & Short-term investments
|59,127
Total Accounts Reccivable
35,975
veatories
12, 귀구
81,596
332, 226
Net Property, Plant & Equipment 129,869
403, 594 (74,366) -18/.
47/47 니 +82,39S 1747.
Total Current Assets
Intangible Assets
4 SI, 923 +i br077 4%
26,923 + 261148
4구,697 +41, 2구 0
67,833 +3 3,076 497
384,090 (14,993) -47.
Total Assets
46४,००6
977.
Accounts Payable
53,071
877.
88,967
Total Current Liabilities
Total Linbilities
100,90a
Total Shareholders' Equity
36구,097
Asset Compoition:
End of Current Year
% of Total Assets
Largest Assets: (from above)
Net property ,Plant
1. tequipmeAAA
casn + Snort term
2.iA Amen
129869
I54,127
-42%.
491.
3. Innentoriey
12/,717

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions