Pecunious Products, Incorporated’s financial results for the past three years are summarized below: Year 3 Year 2 Year 1 Sales trend 128.0 115.0 100.0 Current ratio 2.5 2.3 2.2 Acid-test ratio 0.8 0.9 1.1 Accounts receivable turnover 9.4 10.6 12.5 Inventory turnover 6.5 7.2 8.0 Dividend yield 7.1% 6.5% 5.8% Dividend payout ratio 40% 50% 60% Dividends paid per share* $ 1.50 $ 1.50 $ 1.50 *There have been no changes in common stock outstanding over the three-year period. Required: Your boss has asked you to review these results and then answer the following questions: Is the earnings per share increasing or decreasing? Is the price-earning ratio going up or down?

Pecunious Products, Incorporated’s financial results for the past three years are summarized below: Year 3 Year 2 Year 1 Sales trend 128.0 115.0 100.0 Current ratio 2.5 2.3 2.2 Acid-test ratio 0.8 0.9 1.1 Accounts receivable turnover 9.4 10.6 12.5 Inventory turnover 6.5 7.2 8.0 Dividend yield 7.1% 6.5% 5.8% Dividend payout ratio 40% 50% 60% Dividends paid per share* $ 1.50 $ 1.50 $ 1.50 *There have been no changes in common stock outstanding over the three-year period. Required: Your boss has asked you to review these results and then answer the following questions: Is the earnings per share increasing or decreasing? Is the price-earning ratio going up or down?

Name: Pecunious Products, Incorporated’s financial results for the past thre
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Description: Pecunious Products, Incorporated’s financial results for the past three years are summarized below: Year 3Year 2Year 1Sales trend128.0115.0100.0Current ratio2.52.32.2Acid-test ratio0.80.91.1Accounts receivable turnover9.410.612.5Inventory turnover6.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 40E: Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for...

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	Year 3	Year 2	Year 1
Sales trend	128.0	115.0	100.0
Current ratio	2.5	2.3	2.2
Acid-test ratio	0.8	0.9	1.1
Accounts receivable turnover	9.4	10.6	12.5
Inventory turnover	6.5	7.2	8.0
Dividend yield	7.1%	6.5%	5.8%
Dividend payout ratio	40%	50%	60%
Dividends paid per share*	$ 1.50	$ 1.50	$ 1.50

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Pecunious Products, Incorporated’s financial results for the past three years are summarized below: Year 3 Year 2 Year 1 Sales trend 128.0 115.0 100.0 Current ratio 2.5 2.3 2.2 Acid-test ratio 0.8 0.9 1.1 Accounts receivable turnover 9.4 10.6 12.5 Inventory turnover 6.5 7.2 8.0 Dividend yield 7.1% 6.5% 5.8% Dividend payout ratio 40% 50% 60% Dividends paid per share* $ 1.50 $ 1.50 $ 1.50 *There have been no changes in common stock outstanding over the three-year period. Required: Your boss has asked you to review these results and then answer the following questions: Is it becoming easier for the company to pay its bills as they come due?b. Are customers paying their accounts at least as fast now as they were in Year 1?c. Is the total of the accounts receivable increasing, decreasing, or remaining constant?d. Is the level of inventory increasing, decreasing, or remaining constant?e. Is…
Pecunious Products, Incorporated’s financial results for the past three years are summarized below: Year 3 Year 2 Year 1 Sales trend 128.0 115.0 100.0 Current ratio 2.5 2.3 2.2 Acid-test ratio 0.8 0.9 1.1 Accounts receivable turnover 9.4 10.6 12.5 Inventory turnover 6.5 7.2 8.0 Dividend yield 7.1% 6.5% 5.8% Dividend payout ratio 40% 50% 60% Dividends paid per share* $ 1.50 $ 1.50 $ 1.50 *There have been no changes in common stock outstanding over the three-year period. Required: Your boss has asked you to review these results and then answer the following questions: Is it becoming easier for the company to pay its bills as they come due?b. Are customers paying their accounts at least as fast now as they were in Year 1?c. Is the total of the accounts receivable increasing, decreasing, or remaining constant?d. Is the level of inventory increasing, decreasing, or remaining constant?e. Is…
Pecunious Products, Incorporated’s financial results for the past three years are summarized below: Year 3 Year 2 Year 1 Sales trend 128.0 115.0 100.0 Current ratio 2.5 2.3 2.2 Acid-test ratio 0.8 0.9 1.1 Accounts receivable turnover 9.4 10.6 12.5 Inventory turnover 6.5 7.2 8.0 Dividend yield 7.1% 6.5% 5.8% Dividend payout ratio 40% 50% 60% Dividends paid per share* $ 1.50 $ 1.50 $ 1.50 *There have been no changes in common stock outstanding over the three-year period. Required: Is the level of inventory increasing, decreasing, or remaining constant? Is the market price of the company’s stock going up or down? (pls expound)
Pecunious Products, Inc.'s financial results for the past three years are summarized below: Year 3 Year 2 Year 1 Sales trend 128.0 115.0 100.0 Current ratio 2.5 2.3 2.2 Acid-test ratio 0.8 0.9 1.1 Accounts receivable turnover Inventory turnover Dividend yield Dividend payout ratio 9.4 10.6 12.5 6.5 7.2 8.0 7.1% 6.5% 5.8% 40% 50% 60% Return on total assets 12.5% 11.0% 9.5% Return on equity Dividends paid per share 14.0% 10.0% 7.8% P1.50 P1.50 P1.50 Required: Based on the ratios presented above, discuss your analysis of Pecunious' financial results with respect to its: a. Liquidity; b. Asset management; c. Profitability; and d. Market performance
Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for Cuneo Company above. Required: 1. Prepare a common-size income statement for Year 1 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.) 2. Prepare a common-size income statement for Year 2 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.) 3. Prepare a common-size income statement for Year 3 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.)
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Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for Cuneo Company above. Required: 1. Prepare a common-size income statement for Year 2 by expressing each line item for Year 2 as a percentage of that same line item from Year 1. (Note: Round percentages to the nearest tenth of a percent.) 2. Prepare a common-size income statement for Year 3 by expressing each line item for Year 3 as a percentage of that same line item from Year 1. (Note: Round percentages to the nearest tenth of a percent.)
Assume the following sales data for a company: Current year $770,668 Preceding year 635,551 What is the percentage increase in sales from the preceding year to the current year? a.121.26% b.17.53% c.82.47% d.21.26%
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i. Use the information available in Income and Financial position statementin Part A and calculate the following ratios for DavidCompetitors Average• Net profit margin 28%• Gross profit margin 65%• Current ratio 2.10x• Acid test ratio 1.50x• Accounts receivable collection period 47 days• Accounts payable payment period 65 days Net Profit Margin = Net Income/ Sales = 350/2300 = 15.22% Gross Profit = Sales Revenue + Ending Inventory - Purchases less purchase returns = 2300 + 250 - 1100 = 1450 Gross Profit Margin = Gross Profit/ Sales = 1450/2300 = 63.04% Current Ratio = Current Assets/ Current Liabilities Current Assets = Cash + Bank + Accounts Receivable + Inventory = 4050 + 17100 + 400 + 250 = 21800 Current Liabilities = Accounts Payable = 700 Current Ratio = 21800/700 = 31.14:1 please answer this QUESTION :ii. Assuming David’s competitor’s ratio averages are as stated above:Analyse his performance with reference to each of the ratios calculatedin comparison to those of her…