Financial Accounting
4th Edition
ISBN: 9781259307959
Author: J. David Spiceland, Wayne M Thomas, Don Herrmann
Publisher: McGraw-Hill Education
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Chapter 12, Problem 12.5E
1.
To determine
To calculate: The risk ratios for AE industry for 2018.
2.
To determine
To explain: Whether the company is more risky or less risky than the industry average.
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Ratio Analysis
Consider the following information taken from GER's financial statements:
September 30(in thousands)
2020
2019
Current assets:
Cash and cash equivalents
$1,274
$6,450
Receivables
30,071
16,548
Inventories
31,796
14,072
Other current assets
4,818
2,620
Total current assets
$67,959
$39,690
Current liabilities:
Current portion of long-term debt
$97
$3,530
Accounts payable
23,124
11,228
Accrued compensation costs
5,606
1,929
Accrued expenses
9,108
5,054
Other current liabilities
874
777
Total current liabilities
$38,809
$22,518
Also, GER's operating cash flows were $11,255 and $13,736 in 2020 and 2019, respectively.
4. Calculate the operating cash flow ratios for 2020 and 2019.
Operating Cash Flow Ratio
2020
fill in the blank 7
2019
fill in the blank 8
Solve and perform the different financial ratios using the financial statements of XYZ Company for the year 2021.
1. Current Ratio
2. Quick Ratio
3. Receivables Turnover
4. Inventory Turnover
5. Debt Ratio
6. Equity Ratio
7. Times Interest Earned
8. Gross Profit Margin
9. Operating Profit Margin
10. Net Profit Margin
Selected information from the comparative financial statements of AppleVerse Company for the year ended December 31
appears below:
2018
2017
Php
Php
Accounts receivable (net)
175,000
200,000
Inventory
130,000
150,000
Total assets
1,100,000 800,000
Current liabilities
140,000
110,000
Long-term debt
410,000
300,000
Net credit sales
800,000
700,000
Cost of goods sold
600,000
530.000
Interest expense
40.000
25,000
Income tax expense
60.000
29,000
Net income
150.000
85,000
Net cash provided by operating
220,000
135,000
activities
Compute for the Receivables Turnover for 2018.
O 2.13
O 4.27
O 5.95
O 3.23
Chapter 12 Solutions
Financial Accounting
Ch. 12 - Prob. 1RQCh. 12 - Prob. 2RQCh. 12 - Prob. 3RQCh. 12 - Prob. 4RQCh. 12 - 5.In performing horizontal analysis, why is it...Ch. 12 - Prob. 6RQCh. 12 - Prob. 7RQCh. 12 - Prob. 8RQCh. 12 - Prob. 9RQCh. 12 - Prob. 10RQ
Ch. 12 - Prob. 11RQCh. 12 - Prob. 12RQCh. 12 - Prob. 13RQCh. 12 - Prob. 14RQCh. 12 - Prob. 15RQCh. 12 - Prob. 16RQCh. 12 - Prob. 17RQCh. 12 - Prob. 18RQCh. 12 - Prob. 19RQCh. 12 - Prob. 20RQCh. 12 - Prob. 12.1BECh. 12 - Prob. 12.2BECh. 12 - Prob. 12.3BECh. 12 - Prob. 12.4BECh. 12 - Prob. 12.5BECh. 12 - Universal Sports Supply began the year with an...Ch. 12 - Prob. 12.7BECh. 12 - Prob. 12.8BECh. 12 - Prob. 12.9BECh. 12 - Prob. 12.10BECh. 12 - Prob. 12.11BECh. 12 - Prob. 12.12BECh. 12 - Prob. 12.13BECh. 12 - Classify each of the following accounting...Ch. 12 - Classify each of the following accepted accounting...Ch. 12 - Prob. 12.1ECh. 12 - Prob. 12.2ECh. 12 - Prob. 12.3ECh. 12 - Prob. 12.4ECh. 12 - Prob. 12.5ECh. 12 - Refer to the information for Adrian Express in...Ch. 12 - Prob. 12.7ECh. 12 - Calculate profitability ratios (LO124) Refer to...Ch. 12 - Prob. 12.9ECh. 12 - The income statement for Stretch-Tape Corporation...Ch. 12 - Prob. 12.11ECh. 12 - LeBrons Bookstores has two divisions, books and...Ch. 12 - Prob. 12.13ECh. 12 - Prob. 12.14ECh. 12 - Distinguish between conservative and aggressive...Ch. 12 - Prob. 12.1APCh. 12 - Prob. 12.2APCh. 12 - Prob. 12.3APCh. 12 - Prob. 12.4APCh. 12 - Prob. 12.5APCh. 12 - Prob. 12.6APCh. 12 - Game-On Sports operates in two distinct segments:...Ch. 12 - Prob. 12.2BPCh. 12 - Prob. 12.3BPCh. 12 - Prob. 12.4BPCh. 12 - Prob. 12.5BPCh. 12 - Prob. 12.6BPCh. 12 - Prob. 12.1APCPCh. 12 - Prob. 12.2APFACh. 12 - Prob. 12.3APFACh. 12 - Prob. 12.4APCACh. 12 - Prob. 12.5APECh. 12 - Prob. 12.7APWCCh. 12 - Prob. 12.8APEM
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The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License