Question 5Jingle Ltd. and Bell Ltd. belong to the same industry. A snapshot of some of their financialinformation is given below:Jingle Ltd. | Bell Ltd.3.2 :1Current ratio| Acid-test ratioDebt-Equity ratio|Times interest earned2:11.7:11.1:130%40%5You are a loans officer and both companies have asked for an equal 2-year loan.i)If you could facilitate only one loan, which company would you refuse? Explainyour reasoning brieflyIf both companies could be facilitated, would you be willing to do so? Explainyour argument brieffly.ii)

Ratio analysis refers to the method used by the companies, shareholders, investors, and creditors in…

Answered: ingle Ltd. and Bell Ltd. belong to the…

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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You have just been hired as a financial manager for BEE Inc. Management has provided you with the information below and has asked you to provide a brief explanation for each of the following questions. Your answer must be a minimum of one sentence and no longer than two or three sentences. One word answers or an answer of "good" or "bad" only will receive zero marks. 2021 2020 2019 Current ratio .99 1.32 1.69 Total debt ratio 0.540 0.495 0.489 Profit Margin 0.10 0.11 0.14 Inventory Turnover 2.60 3.14 4.18 a. Based on the results of the past three years, how is the company doing in regards to their ability to pay their short-term debts? Please refer to the specific ratio you would point out to management that backs up your answer. b. The benchmark industry average for the debt ratio is ,490. What does this mean for BEE Inc.? c. The benchmark industry average for the profit margin is .15. What advice would you give…
Using the data below compute the Current Ratio and Quick Ratio. Show your solutions e u.) on Razor Company has provided the following accounts: Cash P300,000 Accounts Payable 700,000 Interest Payable 600,000 Rent Payable Accounts Receivable Inventories Marketable Securities Prepaid Expense Property, Plant, and Equipment Notes Receivable (8% 4-year) Previous " 200,000 Utilities Payable 100,000 Accrued Expenses 3,600,000 Notes Payable (6% 3-year) 1,500,000 Bonds Payable (8% 5-year) a L' P250,000 40,000 70,000 80,000 60,000 1,400,000 2,100,000
Cash Balance Sheet Marketable securities Account receivable Inventory Prepaid rent Total current assets Net Plant and equipment Total assets Account payable Notes payable Accruals Total current liabilities Long-term debt Common stockholders' equity Total liabilities and stockholders' equity Sales Less; Cost of goods sold Gross profit Less: General and administrative Less: Interest Less: Depreciation Total operating and interest expense Earning before tax Less: tax Net income Less: cash dividend Change in retained earnings James Company 2015 15,000 6,000 42,000 51,000 1,200 115,200 286,000 401,200 48,000 15,000 6,000 69,000 160,000 172,200 401,200 2016 14,000 6,200 33,000 84,000 1,100 138,000 270,000 408,300 57,000 13,000 5,000 75,000 150,000 183,300 408,300 600.00 460.000 140.000 30.000 10.000 30.000 70.000 70.000 27.100 42.900 31.800 11.100
All steps of calculation required for reference. Thanks
I need help answering A, B, and C, questions please in the pic.
Q4. Analysis of Financial StatementsThere was a bit of concern about one of Big Rock’s newer entities – Big Rock PavingCompany. Management wants you to review the two financial statements below and giveyour analysis of the company’s performance.Big Rock Paving CompanyAssets LiabilitiesCurrent Assets: Current Liabilities:Cash 200,000 Accounts Payable 700,000Accounts Receivable 300,000 Notes Payable 600,000Inventory 800,000Total Current Assets 1,300,000 Total Current Liabilities 1,300,000Fixed Assets: Owners’ Equity:Property, Plant & Equipment 2,200,000 Common Stock ($1 Par) 600,000Less: Accumulated Depreciation 600,000 Capital Surplus 100,000Net Fixed Assets 1,600,000 Retained Earnings 100,000Total Assets 2,900,000 Total Owners’ Equity 800,000Total Liabilities and Owners’Equity2,900,000Big Rock Paving CompanyIncome Statement for Year Ending December 31, 2021Sales 3,400,000Less: Cost of Goods Sold 2,700,000Less: Administrative Expenses 700,000Less Depreciation 682,000Earnings Before…
Using the data below compute the Current Ratio and Quick Ratio Show your solutions Razor Company has provided the following accounts: Cash P300,000 Accounts Payable 700,000 Interest Payable 600,000 Rent Payable 200,000 Utilities Payable 100,000 Accrued Expenses 3,600,000 Notes Payable ( 6% 3-year) 1,500,000 Bonds Payable (8% 5-year) Accounts Receivable Inventories Marketable Securities Prepaid Expense Property, Plant, and Equipment Notes Receivable (8% 4-year) • Previous P250,000 40,000 70,000 80,000 60,000 1,400,000 2,100,000
(a) Calculate the current ratio for each of the following competing companies. (Round your answers to 2 decimal places.) Current Assets Current Current Liabilities Ratio Edison 24 78,000 $ 27,178 MAXT 103,740 43,992 84,474 65,483 Chatter 41,995 TRU 70,584 Gleeson 59,982 86,362 (b) Which competitor is in the best position to pay its short-term obligations? O Edison O MAXT O Chatter O TRU O Gleeson
You are evaluating the balance sheet for SophieLex’s Corporation. From the balance sheet you find the following balances: cash and marketable securities = $280,000; accounts receivable = $1,380,000; inventory = $2,280,000; accrued wages and taxes = $590,000; accounts payable = $890,000; and notes payable = $780,000. What is the quick ratio (round your answer to 2 decimal places
You are evaluating the balance sheet for SophieLex's Corporation. From the balance sheet you find the following balances: cash and marketable securities = $450,000; accounts receivable = $1,100,000; inventory = $2,000,000; accrued wages and taxes = $450,000; accounts payable = $750,000; and notes payable = $500,000. Calculate SophieLex's current ratio.
Santana Rey has consulted with her local banker and is considering financing an expansion of her business by obtaining a long-term bank loan. Selected account balances at March 31, 2020, for Business Solutions follow. Total assets $121,568 Total liabilities $862 Total equity $120,706 Required:1. The bank has offered a long-term secured note to Business Solutions. The bank’s loan procedures require that a client’s debt-to-equity ratio not exceed 0.77. As of March 31, 2020, what is the maximum amount that Business Solutions could borrow from this bank? 2. Assume Business Solutions borrows the maximum amount allowed from the bank. (a) What percentage of assets would be financed by debt?(b) What percentage of assets would be financed by equity?
The following financial data have been taken from Muscat Company: of Account receivable $200,000 Bonds payable, due in 10 years 300,000 Land 250,000 Notes payable, due in six months 50,000 stion Cash 100,000 Interest payable, due in three months 10,000 Accounts payable 80,000 Inventory 440,000 What is the quick ratio? Select one: O 2.14 O 1.68 O 0.68 None of the answers are correct O 2.31 ENG 07:08

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