Q: Calculate the leverage ratio which includes total debt to total assets ratio, equity multiplier,…
A: Total Debts to Assets ratio = Long term debt + Short term DebtTotal Assets Equity Multiplier = Total…
Q: a) Calculate on the following ratios for AZ Trading for 2020 and 2021: i. Debt-to-equity ratio ii.…
A: Solution:- a) Calculate on the following ratios for AZ Trading for 2020 and 2021 as follows:- i)Debt…
Q: Calculate the following ratios from balance sheet statement for any organization: • Current ratio •…
A: The current and debt ratio is as follows: The resultant table is as follows:
Q: Which ratio is calculated to ascertain the efficiency of inventory management in terms of capital…
A: Inventory turnover ratio: This is a financial measure that is used to evaluate as to how many times…
Q: Required: a. Compute the current ratio b. Quick ratio d. Asset turnover e. Average collection period…
A: Ratio analysis, the foundation of fundamental analysis, helps to gain a deeper insight into the…
Q: Briefly describe the ratios that can be used to evaluate a company’s ability to pay current…
A: The ratios used to evaluate the ability of the company to pay the current liabilities are working…
Q: Long-term solvency ratios Total debt ratio Debt-equity ratio Equity multiplier Times interest earned…
A: Long-term solvency ratio:- It is calculated to check the firm's long-term ability to meet its…
Q: Select the Income Statements and Balance Sheets of Aramco Saudi from the calculate the following…
A: solution- Income…
Q: Which of the following ratios is most useful in evaluating solvency? a. Receivables turnover ratio.…
A: Solvency ratios disclose the firm's ability to meet its long-term liabilities as and when they…
Q: What are the importance of the following financial ratios? Quick ratio. Debt to equity ratio.…
A: 1) Quick ratio= quick assets/ current liabilities Quick assets= current assets- inventory- prepaid…
Q: Short-term creditors would probably most interested in which ratio? a. Current ratio c.…
A: Short-term creditors are mostly interested in liquidity ratios. It means the ability of the business…
Q: Debt-equity ratio is a sub-part of Select one: a. Liquidity ratio b. Solvency ratio c. Profitability…
A: EXPLNANTION:- The debt-equity ratio is an indicator of the lenders' and stockholders' or owners'…
Q: Requirement: Inventory turnover in days Debt-to-equity ratio
A: The method by which it is ascertained whether there exists an optimal level of inventory in the…
Q: tatements, how would one calculate the Book Debt-to-Equity Ration and the Market Debt-to-Equity…
A: Debt to Equity ratio is the ratio which indicates the relative proportion of debt and equity which…
Q: Current ratio Quick ratio Debtors collection period Inventory turnover Creditors payment period
A: We will be applying the following accounting formulas: Current Ratio= Current Asset/ Current…
Q: calculated the current ratio, acid test ratio, account receivable turnover ratio, net profit margin…
A: Ratio analysis is a method to know the liquidity, profitability and operational efficiency of the…
Q: Profit volume ratio is similar to which of the following ratios? Debtors' turnover ratio Operating…
A: Profit volume ratio shows ratio of contribution margin with sales revenue of the business.
Q: Which of the following ratios is used to analyze liquidity?a. Earnings per share.b.…
A: Liquidity is the ability of the organisation to pay off its short term obligations.
Q: The debt-to-assets ratio is the: Multiple Choice ratio of current liabilities to current assets.…
A: Debt-to Assets Ratio = Total Debt / Total Assets
Q: Write the formula for the following ratios and what each ratio measures:
A: Ratios are the measure which are used by the company to measure actually as well as it shows the…
Q: Which of the following is NOT one of the ratios in Internal Liquidity group? Select one: O a. Quick…
A: The liquidity ratios helps to know about the capability of the business to pay off its liabilities…
Q: For which of the following balance sheet items will the book value and market value most likely be…
A: The financial statements of a company consists of income statement and balance sheet. The balance…
Q: Ratios that measure liquidity include all of the following except:a. the leverage ratio.b. inventory…
A: Liquidity means short term cash position of the company. To measure liquidity, some ratios are:…
Q: he current ratio is a. calculated by dividing current liabilities by current assets. b. used to…
A: Current ratio is a liquidity ratio calculated by dividing current assets by current liabilities.…
Q: Working Capital Requirement 1. Compute Current Debt-to- these ratios: Ratio Cash Ratio Debt Ratio…
A: We know the basic formula of Current Ratio = Current Asset / Current Liability Working Capital =…
Q: n equity/capital O D.
A: To find the correct option as,
Q: Which of the following ratios is(are) useful in assessing a company's ability to meet current…
A: Short term solvency ratios used to measure the companies ability to pay its short term liabilities…
Q: Based on this information, compute (a) the current ratio, (b) the days sales outstanding (c) the…
A: Lozano Chip Company The current ratio = Current asset / Current liabilities = $2925000 / 1453500 =…
Q: Help calculating the following ratios: return on equity current ratio quick ratio debt-to-equity…
A: ROE = Earning available to Equity shareholders * 100/ Equity shareholders fund Current Ratio =…
Q: The debt to equity ratio is calculated as a. Total assets / Total equity. b. Current liabilities /…
A: Debt to equity ratio: The ratio of company’s total debt to the total stockholders’ equity is known…
Q: sing the information from 27A prepare the following ratios: gross profit margin profit margin…
A: Accounting ratios are determined to know the efficiency, effectiveness and performance of the firm.…
Q: Which of the following ratios is used by the company to determine its ability to pay currently…
A: A business organisation is treated as short term solvent if it is in a position to pay currently…
Q: Which of the following ratios incorporates stock market data?a. Inventory turnover. c.…
A: Given: The incorporation of stock market data by the ratio.
Q: MODIFIED MATCHING TYPE: From the financial ratios listed in the box, group the financial ratios as…
A: Profitability ratio determines the profitability of the entity over a period of time with regard to…
Q: Definitional problems: Listed are 11 terms that relate to ratio analysis:1. Book value per…
A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…
Q: Based on financial reports prepare ratio analysis and interpret the result of the Following ratios:…
A: Ratio Analysis is the financial analysis technique which evaluate the profitability, liquidity,…
Q: Which ratio measures the ability to pay current liabilities with current assets?a. Debt ratiob.…
A: Ratio analysis: It refers to the quantitative technique of financial analysis that allows gaining an…
Q: Calculate the following ratios and interpret the results: (Use the information attached with the…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Show the calculation of the following solvency ratios: (1) the debt to equity ratio, and (2) the…
A: Solvency: Solvency is the capability of a company to pay the long-term liabilities which are due.…
Q: Assess the company’s level of liquidity and comment on its ability to meet its short-term financial…
A: By the given balance sheet and other comprehensive income statement we will calculate and process…
Q: The debt ratio is calculated by dividing:a. total assets by total debt.b. total debt by total…
A: Ratio analysis is used to evaluate the balance sheet figure and income statement.
Q: Calculate the following Ratios: g) Accounts Payable Turnover Ratio h) Debt ratio i) Return on…
A: The ratios mentioned in the question are financial ratios. We can calculate them using the provided…
Step by step
Solved in 2 steps
- BALANCE SHEETCash $ 140.0 Accounts payable $ 800 .0Accts. receivable 880 .0 Notes payable 600.0Inventories 1,320.0 Accruals 400 .0Total current assets $2,340.0 Total current liabilities $1,800.0Long-term bonds 1,000.0Total debt $2,800.0Common stock 200 .0Retained earnings 1,000.0Net plant & equip. 1,660.0 Total common equity $1,200.0Total assets $4.000.0 Total liabilities & equity $4.000.0lNCOME STATEMENTNet sales $6,000.0Operating costs 5,599.8Depreciation 100.2EBIT $ 300.0Less: Interest 96 .0EBT $ 204 .0Less: Taxes 81.6Net income $ 122.4OTHER DATAAnnual Principal and Lease Payments 0.00Shares outstanding (millions) 60 .00Common dividends (millions) $42.8Interest rate on NIP and long-term bonds 6.0 %Federal plus state income tax rate 40%Year-end stock price $30 .60 What is the firms ROE (Return on Equity)?Group of answer choices 9.45% 9.63% 9.84% 10.20%BALANCE SHEETCash $ 140.0 Accounts payable $ 800 .0Accts. receivable 880 .0 Notes payable 600.0Inventories 1,320.0 Accruals 400 .0Total current assets $2,340.0 Total current liabilities $1,800.0Long-term bonds 1,000.0Total debt $2,800.0Common stock 200 .0Retained earnings 1,000.0Net plant & equip. 1,660.0 Total common equity $1,200.0Total assets $4.000.0 Total liabilities & equity $4.000.0lNCOME STATEMENTNet sales $6,000.0Operating costs 5,599.8Depreciation 100.2EBIT $ 300.0Less: Interest 96 .0EBT $ 204 .0Less: Taxes 81.6Net income $ 122.4OTHER DATAAnnual Principal and Lease Payments 0.00Shares outstanding (millions) 60 .00Common dividends (millions) $42.8Interest rate on NIP and long-term bonds 6.0 %Federal plus state income tax rate 40%Year-end stock price $30 .60 Question 9 What is the firm's Debt Ratio? Group of answer choices 60.0% 65.0% 70.0% 75.0% Question 10 What is the firm's Inventory Turnover? 4.41 4.55 4.69 4.83 Question 11 What is the firm's DPS…BALANCE SHEETCash $ 140.0 Accounts payable $ 800 .0Accts. receivable 880 .0 Notes payable 600.0Inventories 1,320.0 Accruals 400 .0Total current assets $2,340.0 Total current liabilities $1,800.0Long-term bonds 1,000.0Total debt $2,800.0Common stock 200 .0Retained earnings 1,000.0Net plant & equip. 1,660.0 Total common equity $1,200.0Total assets $4.000.0 Total liabilities & equity $4.000.0lNCOME STATEMENTNet sales $6,000.0Operating costs 5,599.8Depreciation 100.2EBIT $ 300.0Less: Interest 96 .0EBT $ 204 .0Less: Taxes 81.6Net income $ 122.4OTHER DATAAnnual Principal and Lease Payments 0.00Shares outstanding (millions) 60 .00Common dividends (millions) $42.8Interest rate on NIP and long-term bonds 6.0 %Federal plus state income tax rate 40%Year-end stock price $30 .60 Question 5 What is the firm's EBITDA coverage? Group of answer choices 3.51 3.69 3.88 4.17 Question 6 What is the firms DSO (Days Sales Outstanding)? Group of answer choices 51.30 days 52.80 days 53.50…
- View Policies Current Attempt in Progress Using the following balance sheet and income statement data, what is the debt to assets ratio? Current assets $31500 Net income $41100 Stockholders' Current liabilities 15400 79400 equity Average assets 162500 Total liabilities 42300 Total assets 114000 Average common shares outstanding was 15500. 37 percent O 70 percent O 15 percent O 28 percent Attempts: 0 of 1 used Save for LaterDebt to Assets ratio? Current assets $22400 Net income $44500 Stockholders' Current liabilities 13400 66400 equity Average assets 132000 Total liabilities 28600 Total assets 87000 Average common shares outstanding was 17000. 21.7 percent 43.8 percent 32.9 percent 33.7 percentCategory Prior Year Current Year Accounts payable 3,147.00 5,976.00 Accounts receivable 6,925.00 8,910.00 Accruals 5,635.00 6,187.00 Additional paid in capital 19,527.00 13,950.00 Cash ??? ??? Common Stock 2,850 2,850 COGS 22,974.00 18,270.00 Current portion long-term debt 500 500 Depreciation expense 975.00 976.00 Interest expense 1,278.00 1,155.00 Inventories 3,048.00 6,717.00 Long-term debt 16,569.00 22,919.00 Net fixed assets 75,968.00 73,882.00 Notes payable 4,045.00 6,584.00 Operating expenses (excl. depr.) 19,950 20,000 Retained earnings 35,870.00 34,759.00 Sales 46,360 45,347.00 Taxes 350 920 What is the firm's cash flow from operations? What is the firm's dividend payment in the current year? What is the firm's net income in the current year?
- Using the following balance sheet, calculate net working capital: Cash Marketable Securities Accounts receivable Inventory Current assets Net fixed assets Total assets Select one: O A. $60.00 O B. $40.00 O C. $10.00 O D. $90.00 $10 Accounts payable 30 Accruals 50 Notes payable 40 Current liabilities $130 Long-term debt 100 Common equity Retained earnings $230 Total liab. & equity $20 20 50 $90 0 30 50 $230Solvency and Profitability Trend Analysis Addai Company has provided the following comparative information: 20Y8 20Υ7 20Υ6 20Y5 20Υ4 Net income $273,406 S367,976 $631,176 $884,000 $800,000 Interest expense 616,047 572,003 528,165 495,000 440,000 Income tax expense 31,749 53,560 106,720 160,000 200,000 Total assets (ending balance) 4,417,178 4,124,350 3,732,443 3,338,500 2,750,000 Total stockholders' equity (ending balance) 3,706,557 3,433,152 3,065,176 2,434,000 1,550,000 Average total assets 4,270,764 3,928,396 3,535,472 3,044,250 2,475,000 Average total stockholders' equity 3,569,855 3,249,164 2,749,588 1,992,000 1,150,000 You have been asked to evaluate the historical performance of the company over the last five years. Selected industry ratios have remained relatively steady at the following levels for the last five years: 20Y4-20Y8 Return on total assets 28% Return on stockholders' equity 18% Times interest earned 2.7 Ratio of liabilities to stockholders equity 0.4 Required: 1.…Use the common-size financial statements found here: ommon-Size Balance Sheet 2016Cash and marketable securities $ 480 1.5 %Accounts receivable 6,030 18.2Inventory 9,540 28.8Total current assets $ 16,050 48.5 %Net property, plant, and equipment 17,020 51.5Total assets $33,070 100.0 %Accounts payable $ 7,150 21.6 %Short-term notes 6,850 20.7Total current liabilities $ 14,000 42.3 %Long-term liabilities 7,010 21.2Total liabilities $ 21,010 63.5 %Total common shareholders’ equity 12,060 36.5Total liabilities and shareholders’ equity $33,070 100.0 %Common-Size Income Statement 2016Revenues $ 30,000 100.0 %Cost of goods sold (20,050) 66.8Gross profit $ 9,950 33.2 %Operating expenses (7,960) 26.5Net operating income $ 1,990 6.6 %Interest expense (940) 3.1Earnings before taxes $ 1,050 3.5 %Income taxes (382) 1.3Net income $668 2.2 % Specifically, write up a brief narrative that responds to the following questions: a. How much cash does Patterson have on hand relative to its total…
- Reference is made to the 2022 Balance Sheet of Tran-Ropes limited. Tram-Ropes Limited Balance Sheet 2022 Cash Acc. Receivable Marketable securities Inventories Fixed Assets Total Assets 1,000,000.00 ii. 12,000,000.00 3,000,000.00 7,500,000.00 26,500,000.00 50,000,000,00 Accounts Payable Notes Payable Long-term Debt Common stock Preferred Stock Total Liabilities and Equity 8,000,000.00 8,500,000.00 20,000,000.00 7,500,000.00 6,000,000.00 50,000,000.00 Additional Information: 1. The Long-Term debt consists of 8% annual coupon bonds, with 15 years to maturity and are currently selling for 95% of par. The company's common shares which have a book value of $20 per share are currently selling at $25 per share. iii. iv. V. Preferred shares have a book value of $100 per share. These shares are currently selling at $120 per share and pays dividends of 6% per annum on book value. The dividend growth rate is expected to be 3%, and dividend for 2823 is projected to be $5.00 per share. The…Reference is made to the 2022 Balance Sheet of Tram-Ropes limited. Tram-Ropes Limited Balance Sheet 2022 Cash Acc. Receivable Marketable securities Inventories Fixed Assets Total Assets i. 1,000,000.00 ii. 12,000,000.00 3,000,000.00 7,500,000.00 26,500,000.00 50,000,000.00 Accounts Payable Notes Payable Long-term Debt Common stock Preferred Stock Total Liabilities and Equity 8,000,000.00 8,500,000.00 20,000,000.00 7,500,000.00 6,000,000.00 Additional Information: The Long-Term debt consists of 8% annual coupon bonds, with 15 years to maturity and are currently selling for 95% of par. The company's common shares which have a book value of $20 per share are currently selling at $25 per share. 50,000,000.00Category Prior Year Current Year Accounts payable 3,123.00 5,969.00 Accounts receivable 6,987.00 8,940.00 Accruals 5,642.00 6,108.00 Additional paid in capital 19,885.00 13,325.00 Cash ??? ??? Common Stock 2,850 2,850 COGS 22,986.00 18,120.00 Current portion long-term debt 500 500 Depreciation expense 1,035.00 988.00 Interest expense 1,290.00 1,167.00 Inventories 3,006.00 6,743.00 Long-term debt 16,856.00 22,001.00 Net fixed assets 75,521.00 74,000.00 Notes payable 4,072.00 6,540.00 Operating expenses (excl. depr.) 19,950 20,000 Retained earnings 35,244.00 34,874.00 Sales 46,360 45,055.00 Taxes 350 920 What is the firm's cash flow from financing?