Questions 4 Question 1. Consider the following information relating to three companies, which are similar to Tasty Foods Ltd Jumbo Foods Ltd Fresh Foods Ltd Natural Foods Ltd Price/EBDITA 20 19 Price/Book Value 3 4 22 22 Price/Sales 3 5 The EBDITA of Tasty Foods is 220 lacs, Book value is 275 lacs and Sales are 500 lacs. It may be assumed that the average ratios of the three companies are suitable for Tasty Foods. Estimate the value of Tasty Foods Ltd based on the above information.

Questions 4 Question 1. Consider the following information relating to three companies, which are similar to Tasty Foods Ltd Jumbo Foods Ltd Fresh Foods Ltd Natural Foods Ltd Price/EBDITA 20 19 Price/Book Value 3 4 22 22 Price/Sales 3 5 The EBDITA of Tasty Foods is 220 lacs, Book value is 275 lacs and Sales are 500 lacs. It may be assumed that the average ratios of the three companies are suitable for Tasty Foods. Estimate the value of Tasty Foods Ltd based on the above information.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 19Q: The following is select account information for Sunrise Motors. Sales: $256,400; Sales Returns and...

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b. Comment on each of the ratios calculated in part (a). ABOVE IS THE QUESTION THAT I NEED ANSWER, BELOW IS THE QUESTION (A) ANSWER THAT MENTIONED IN QUESTION (B) a) Calculate the following ratios for Company A and Company B. State clearly the formulae used for each ratio: ANSWER i) Gross Profit Margin Formula: Gross profit Margin = ( Gross profit / Net sales ) x 100 Company A : = ( 40000 / 160000 ) x 100 = 25 % Company B : = ( 60000 / 240000 ) x 100 = 25 % ii)Net Profit Margin Net profit Margin = ( Net profit / Net sales ) x 100 Company A : = ( 9000 / 160000 ) x 100 = 5.625 % Company B: = ( 18000 / 240000 ) x 100 = 7.5 % iii) Inventory Turnover Period (days) Inventory Turnover Period (days) = ( Inventory / Cost of sales ) x 365 Company A: = ( 30000 / 120000 ) x 100 = 25 % Company B: = ( 50000 / 180000 ) x 100 = 27.777 % iv) Receivables Collection Period (days) Receivables Collection Period (days) = ( Receivables / Net sales ) x 365…
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The 2024 income statement of Adrian Express reports sales of $20,310,000, cost of goods sold of $12,500,000, and net income of $1,900,000. Balance sheet information is provided in the following table. Assets Current assets: Cash Accounts receivable Inventory ADRIAN EXPRESS Balance Sheets December 31, 2024 and 2023 Long-term assets Total assets Liabilities and Stockholders' Equity Current liabilities Long-term Liabilities Common stock Retained earnings Total liabilities and stockholders' equity Industry averages for the following four risk ratios are as follows: Gross profit ratio Return on assets Profit margin Asset turnover Return on equity 45% 25% 15% 6.5 35% tines 2024 2023 $800,000 $910,000 1,725,000 1,175,000 2,175,000 1,625,000 5,000,000 4,390,000 $9,700,000 $8,100,000 $2,030,000 $1,820,000 2,490,000 2,560,000 2,025,000 1,975,000 3,155,000 1,745,000 $9,700,000 $8,100,000
VII. Direction: Compute and interpret. The following comparative financial statements are provided by Avatar Industries. You were asked to compute the different financial ratios and provide your interpretations with regards to profitability, efficiency, liquidity and solvency of the company. Use the Answer Sheet template below to input your answer and solution. AVATAR INDUSTRIES AVATAR INDUSTRIES Comparative Statement of Financial Position For the years 2019 and 2018 Comparative Income Statement For the years 2019 and 2018 2019 2018 2019 2018 ASSETS Current Assets: Sales P200,000 P210,000 Cash & Cash Equivalent P65,000 P70,000 Sales Returns and Allowances 40,000 25,000 Accounts Receivable 40,000 35,000 Net Sales 160,000 185,000 Marketable Secuities 40,000 35,000 Cost of Goods Sold 100,000 115,625 Inventory 100,000 80,000 Gross Profit 60,000 69,375 Total Current Assets 220,000 200,000 160,000 P445,000 P380,000 245,000 Operating Expenses: Fixed Assets Selling Expenses 22,000 25,000 Total…
The following information is given with respect to the ratio's of two companies Aman Ltd Roger Ltd Current Ratio 2:01 1.60:1 Quick Ratio 1.35:1 1:01 Return on Investment 15% 13% Debt Equity Ratio 2.5:1 1:01 a) Define the concepts of Current and Quick ratio’s and also, reflect on your understandingtowards the financial performance of the companies by looking to the above information? b) Define the terms- Return on Investment and Debt equity ratio and also, reflect on your understanding towards the financial performance of the companies?
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