Requirement 1. ComputeCurrentWorkingDebt-to-these ratios:RatioCapitalCash RatioDebt Ratio Equity RatioRound ratios to twodecimal places orformat as percentages orAccountsDays SalesInventory Days Sales inInventoryGross Profit ReceivablePercentagecurrency as appropriate.inTurnoverTurnover Receivables2019 Total Assets =Rate ofRate ofAssetReturn onStockholders'| EarningsEquityReturn onTurnoverTotal AssetsRatioPer Share2019 SHE =Price/*Current Stock Price isEarningsDividend$10.00 per shareRatio*Dividend YieldРayoutDividend per share=Requirement 2. Based onthe ratios computed above,analyze the company'sability to pay its debts (bothcurrent and long term).Refer to at least 3 specificratios in your analysis.Requirement 3: Based onthe ratios computed above,analyze the company'smanagement of inventory.Refer to at least 2 specificratios in your analysis.Requirement 4: Based onthe ratios computed above,analyze the company'smanagement of receivables.Refer to at least 2 specificratios in your analysis. Solar Solutions began operations on January 1, 2015, and is now in its sixth year of operations. It is a retail sales company with a large amount of online sales.The adjusted trial balance as of December 31, 2020 appears below, along with prior year balance sheet data and some additional transaction data for 2020.SOLAR SOLUTIONSAdjusted Trial Balance12/31/202020202019Account TitleAdjusted Trial BalancePost-Closing Trial Balance$ 125,600DebitCreditDebitCredit35,000Cash122,200125,6006,000Accounts Receivable55,00035,00015,60047,00021,000Prepaid Insurance5,0006,000Inventory46,00015,600Office EquipmentMachinery & ToolsAccumulated DepreciationAccounts PayableSalaries Payable|Sales Tax PayableNote Payable-Long TermCommon Stock, $10 parRetained Earnings63,00047,000(16,000)59,00021,000$ 234,200$21,00016,00011,20016,8002,6002,7002,0004,00031,00022,100240,000160,00028,60028,600Dividends10,000Sales RevenueCost of Goods Sold235,000127,600Rent ExpenseSalaries ExpenseInsurance ExpenseAdvertising ExpenseDepreciation ExpenseInterest Expense20,00036,00011,8006,0005,0001,800Income Tax Expense3,000$571,400 $571,400 $250,200250,200Transaction Data for 2020 (Note, these transactions were included in the trial balance numbers above.)Cash paid for purchase of office equipmentCash paid for purchase of toolsAcquisition of Machinery with Notes Payable-Long-termPayment on Long Term DebtCash payment of dividends6,00010,00038,000?10,000Cash receipt from issuance of 10,000 shares of common stock80,000

We know the basic formula of Current Ratio = Current Asset / Current Liability Working Capital =…

Working Capital Requirement 1. Compute Current Debt-to- these ratios: Ratio Cash Ratio Debt Ratio Equity Ratio Round ratios to two decimal places or format as percentages or Accounts Days Sales Gross Profit Receivable Days Sales in Inventory currency as appropriate. Inventory in Turnover Percentage Turnover Receivables

Working Capital Requirement 1. Compute Current Debt-to- these ratios: Ratio Cash Ratio Debt Ratio Equity Ratio Round ratios to two decimal places or format as percentages or Accounts Days Sales Gross Profit Receivable Days Sales in Inventory currency as appropriate. Inventory in Turnover Percentage Turnover Receivables

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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Q. Calculate the current assets and current liabilities from the data given below. Current ratio. 1.8 Quick ratio. 1.2 Inventory turnover ( on c.g.s). 12 Gross profit rate. 25% Credit period. 1month Working capital. 640000
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Liquidity Ratio Current Ratio Quick Ratio Leverage Ratio Debt to Total Assets Ratio Debt Equity Ratio Long-Term Debt to Equity Times Interest Earned Ratio Activity Ratios Inventory Turnover Fixed Assets Turnover Total Assets Turnover Accounts Receivable Turnover Average Collection Period Profitability Ratios Gross Profit Margin Operating Profit Margin Net Profit Margin Return on Total Assets (ROA) Return on Stockholder's Equity (ROE) Earnings Per Share (EPS) Price Earnings Ratio Please provide the numbers for the ratios.
Definitional problems: Listed are 11 terms that relate to ratio analysis:1. Book value per share2.Inventoryturnover3. Debt-to-equity ratio4. Average collection period5. Average sales period6. Return on common equity7. Earnings per share8. Price/earnings ratio9. Return on total assets10. Current ratio11. Accounts-receivable turnoverChoose the financial ratio or term from the list that most appropriately completes each of the following statements:1. The__________ tends to have an effect on the market price per share asreflected in the price/earnings ratio.2. The__________ indicates whether a stock is relatively cheap or relativelyexpensive in relation to current earnings. 3. The________ measures the amount that would be distributed to holders of common stock if all assets were sold at their balance-sheet carrying amount and if all creditors were paid off.4. The_____________ is a rough measure of how many times a company'saccounts…
need the calculation for debt to assets ratio, debt equity ratio, long-term debt to equity and times interest earned ratio. CURRENT ASSETS Cash and cash equivalents $ 5,910 $ 5,238 Marketable securities 406 503 Accounts receivable 10,888 9,645 Less: Allowance for credit losses (138) (93) Accounts receivable, net 10,750 9,552 Assets held for sale 1,197 0 Other current assets 1,953 1,810 Total Current Assets 20,216 17,103 Property, Plant and Equipment, Net 32,254 30,482 Operating Lease, Right-of-Use Asset 3,073 2,856 Goodwill 3,367 3,813 Intangible Assets, Net 2,274 2,167 Investments and Restricted Cash 25 24 Deferred Income Tax Assets 527 330 Other Non-Current Assets 672 1,082 Total Assets 62,408 57,857 Current Liabilities: Current maturities of long-term debt, commercial paper and finance leases 2,623 3,420 Operating Lease, Liability, Current 560 538 Accounts payable 6,455 5,555 Accrued wages and withholdings 3,569 2,552…
Asset turnover is measured by Sales revenue / Average total assets. State the effect the following event occurring on the reporting date would have on this ratio. EVENT: An interest payment on an interest-only loan Decrease
27-A prepare the following: GROSS PROFIT RATIO PROFIT MARGIN RETURN ON ASSETS EARNINGS PER SHARE CURRENT RATIO ACID TEST RATIO DEBT RATIO
RATIO ANALYSIS. Debt Ratio Activity 6 · Understand the information provided by the debt ratio. · Identify the expected range and whether an increasing or decreasing trend is preferred. Purpose: The debt ratio compares total liabilities to total assets. This ratio measures the proportion of assets financed by debt. It is a measure of long-term solvency. Total liabilities DEBT RATI0 = Total assets JOHNSON & CITIGROUP 12/31/99 HEWLETT- PACKARD 10/3 1/99 JOHNSON 1/03/99 WAL-MART 1/31/99 ($ in 000s) Assets $716,937,000 $35,297,000 $26,211,000 $49,996,000 Liabilities 667,251,000 17,002,000 12,621.000 28,884,000 Stockholders' Equity $ 49,686,000 $18,295,000 $13,590,000 $21,112,000 Source: Disclosure, Inc, Compact D/SEC, 2000. 1. For each-company listed above, compute the debt ratio. Record your results below. Debt ratio: 0.93 2. The debt ratios computed above are primarily in the ranġe (less than 0,40 / 0.40 through 0.70 / over 0.70): 3. % of Wal-Mart's assets are financed by debt. 4.…
The debt ratio is calculated by dividing:a. total assets by total debt.b. total debt by total assets.c. total assets by long-term liabilities.d. long-term liabilities by total assets.
Please donot provide solution in image format provide solution in step by step format and fast solution Using the information from Part I, comment on the following financial elements of Target Corporation: