Financial ratios help in comparing the performance of the company with its previous performance as well as that of competitors in the industry. They are divided into four building blocks. These blocks are liquidity and efficiency, solvency, profitability, and market prospects. The current ratio .

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Answer 1

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Chapter 13, Problem 2PSA

1.

To determine

Introduction: Financial ratios help in comparing the performance of the company with its previous performance as well as that of competitors in the industry. They are divided into four building blocks. These blocks are liquidity and efficiency, solvency, profitability, and market prospects.

The current ratio.

2.

To determine

Introduction: Vertical analysis is done as a comparison or defining the relationship between the items of the same year. The representation is done vertically by determining the relative contribution made by each item to a particular item of the same year.

To prepare: The common-size percent.

3.

To determine

Introduction: Trend analysis represents the trend percents patterns in data across periods. It considers the previous period as the base period and compares the data trend across periods. Trend percent is computed as follows:

Trend percent=Analysis period amountBase period amount×100

The trend analysis for the balance sheet.

4.

To determine

Introduction: Vertical analysis is done as a comparison or defining of the relationship between the items of the same year. The representation is done vertically by determining the relative contribution made by each item to a particular item of the same year.

The portion cost of goods sold to make up for sales is a greater portion or not, income as a percent of sales improve in the most recent year or not, and the growth of plant assets over the period.

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The condensed financial statements of Ivanhoe Company for the years 2020-2021 are presented below: (See Images) Compute the following financial ratios by placing the proper amounts for numerators and denominators. (Round per unit answers to 2 decimal places, e.g. 52.75.) (a) Current ratio at 12/31/21 $ $ (b) Acid test ratio at 12/31/21 $ $ (c) Accounts receivable turnover in 2021 $ $ (d) Inventory turnover in 2021 $ $ (e) Profit margin on sales in 2021 $ $ (f) Earnings per share in 2021 $ (g) Return on common stockholders’ equity in 2021 $ $ (h) Price earnings ratio at 12/31/21 $ $ (i) Debt to assets at 12/31/21 $ $ (j) Book value per share at 12/31/21 $

Using the fiscal year end 2020 annual report for General Mills, Inc. and the figures from the 2020 annual report as noted below, calculate the financial ratios for 2020 and 2019 indicated using the EXCEL template provided:1. Gross profit percentage2. Return on sales3. Asset turnover 4. Return on assets5. Return on common stockholders’ equity6. Current ratio7. Quick ratio8. Operating-cash-flow-to-current-liabilities ratio9. Accounts receivable turnoverTotal assets 2020 = $30,806.7Total stockholders’ equity 2020 = $8,349.5Total current liabilities 2020 = $7,491.5Accounts receivable 2020 = $1,615.1Inventory 2020 = $1,426.3Year-end closing stock price May 2020 = $58.80Year-end closing stock price May 2019 = $53.56 To calculate averages use (current year balance + poor year balance) / 2) Round percentages to 1 decimal place; round other answers to 2 decimal places.

Not Graded Using the fiscal year end 2020 annual report for General Mills, Inc. and the figures from the 2020 annual report as noted below, calculate the financial ratios for 2020 and 2019 indicated using the EXCEL template provided:1. Gross profit percentage2. Return on sales3. Asset turnover 4. Return on assets5. Return on common stockholders’ equity6. Current ratio7. Quick ratio8. Operating-cash-flow-to-current-liabilities ratio9. Accounts receivable turnoverTotal assets 2020 = $30,806.7Total stockholders’ equity 2020 = $8,349.5Total current liabilities 2020 = $7,491.5Accounts receivable 2020 = $1,615.1Inventory 2020 = $1,426.3Year-end closing stock price May 2020 = $58.80Year-end closing stock price May 2019 = $53.56

Answer 2

Question

Chapter 13, Problem 2PSA

1.

To determine

Introduction: Financial ratios help in comparing the performance of the company with its previous performance as well as that of competitors in the industry. They are divided into four building blocks. These blocks are liquidity and efficiency, solvency, profitability, and market prospects.

The current ratio.

2.

To determine

Introduction: Vertical analysis is done as a comparison or defining the relationship between the items of the same year. The representation is done vertically by determining the relative contribution made by each item to a particular item of the same year.

To prepare: The common-size percent.

3.

To determine

Introduction: Trend analysis represents the trend percents patterns in data across periods. It considers the previous period as the base period and compares the data trend across periods. Trend percent is computed as follows:

Trend percent=Analysis period amountBase period amount×100

The trend analysis for the balance sheet.

4.

To determine

Introduction: Vertical analysis is done as a comparison or defining of the relationship between the items of the same year. The representation is done vertically by determining the relative contribution made by each item to a particular item of the same year.

The portion cost of goods sold to make up for sales is a greater portion or not, income as a percent of sales improve in the most recent year or not, and the growth of plant assets over the period.

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Answer 3

Question

Chapter 13, Problem 2PSA

1.

To determine

Introduction: Financial ratios help in comparing the performance of the company with its previous performance as well as that of competitors in the industry. They are divided into four building blocks. These blocks are liquidity and efficiency, solvency, profitability, and market prospects.

The current ratio.

2.

To determine

Introduction: Vertical analysis is done as a comparison or defining the relationship between the items of the same year. The representation is done vertically by determining the relative contribution made by each item to a particular item of the same year.

To prepare: The common-size percent.

3.

To determine

Introduction: Trend analysis represents the trend percents patterns in data across periods. It considers the previous period as the base period and compares the data trend across periods. Trend percent is computed as follows:

Trend percent=Analysis period amountBase period amount×100

The trend analysis for the balance sheet.

4.

To determine

Introduction: Vertical analysis is done as a comparison or defining of the relationship between the items of the same year. The representation is done vertically by determining the relative contribution made by each item to a particular item of the same year.

The portion cost of goods sold to make up for sales is a greater portion or not, income as a percent of sales improve in the most recent year or not, and the growth of plant assets over the period.

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Answer 4

Question

Chapter 13, Problem 2PSA

1.

To determine

Introduction: Financial ratios help in comparing the performance of the company with its previous performance as well as that of competitors in the industry. They are divided into four building blocks. These blocks are liquidity and efficiency, solvency, profitability, and market prospects.

The current ratio.

2.

To determine

Introduction: Vertical analysis is done as a comparison or defining the relationship between the items of the same year. The representation is done vertically by determining the relative contribution made by each item to a particular item of the same year.

To prepare: The common-size percent.

3.

To determine

Introduction: Trend analysis represents the trend percents patterns in data across periods. It considers the previous period as the base period and compares the data trend across periods. Trend percent is computed as follows:

Trend percent=Analysis period amountBase period amount×100

The trend analysis for the balance sheet.

4.

To determine

Introduction: Vertical analysis is done as a comparison or defining of the relationship between the items of the same year. The representation is done vertically by determining the relative contribution made by each item to a particular item of the same year.

The portion cost of goods sold to make up for sales is a greater portion or not, income as a percent of sales improve in the most recent year or not, and the growth of plant assets over the period.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 13, Problem 2PSA

1.

To determine

Introduction: Financial ratios help in comparing the performance of the company with its previous performance as well as that of competitors in the industry. They are divided into four building blocks. These blocks are liquidity and efficiency, solvency, profitability, and market prospects.

The current ratio.

2.

To determine

Introduction: Vertical analysis is done as a comparison or defining the relationship between the items of the same year. The representation is done vertically by determining the relative contribution made by each item to a particular item of the same year.

To prepare: The common-size percent.

3.

To determine

Introduction: Trend analysis represents the trend percents patterns in data across periods. It considers the previous period as the base period and compares the data trend across periods. Trend percent is computed as follows:

Trend percent=Analysis period amountBase period amount×100

The trend analysis for the balance sheet.

4.

To determine

Introduction: Vertical analysis is done as a comparison or defining of the relationship between the items of the same year. The representation is done vertically by determining the relative contribution made by each item to a particular item of the same year.

The portion cost of goods sold to make up for sales is a greater portion or not, income as a percent of sales improve in the most recent year or not, and the growth of plant assets over the period.

Answer 6

Chapter 13, Problem 2PSA

1.

To determine

Introduction: Financial ratios help in comparing the performance of the company with its previous performance as well as that of competitors in the industry. They are divided into four building blocks. These blocks are liquidity and efficiency, solvency, profitability, and market prospects.

The current ratio.

Answer 7

Chapter 13, Problem 2PSA

1.

To determine

Introduction: Financial ratios help in comparing the performance of the company with its previous performance as well as that of competitors in the industry. They are divided into four building blocks. These blocks are liquidity and efficiency, solvency, profitability, and market prospects.

The current ratio.

Answer 8

2.

To determine

Introduction: Vertical analysis is done as a comparison or defining the relationship between the items of the same year. The representation is done vertically by determining the relative contribution made by each item to a particular item of the same year.

To prepare: The common-size percent.

Answer 9

2.

To determine

Introduction: Vertical analysis is done as a comparison or defining the relationship between the items of the same year. The representation is done vertically by determining the relative contribution made by each item to a particular item of the same year.

To prepare: The common-size percent.

Answer 10

3.

To determine

Introduction: Trend analysis represents the trend percents patterns in data across periods. It considers the previous period as the base period and compares the data trend across periods. Trend percent is computed as follows:

Trend percent=Analysis period amountBase period amount×100

The trend analysis for the balance sheet.

Answer 11

3.

To determine

Introduction: Trend analysis represents the trend percents patterns in data across periods. It considers the previous period as the base period and compares the data trend across periods. Trend percent is computed as follows:

Trend percent=Analysis period amountBase period amount×100

The trend analysis for the balance sheet.

Answer 12

4.

To determine

Introduction: Vertical analysis is done as a comparison or defining of the relationship between the items of the same year. The representation is done vertically by determining the relative contribution made by each item to a particular item of the same year.

The portion cost of goods sold to make up for sales is a greater portion or not, income as a percent of sales improve in the most recent year or not, and the growth of plant assets over the period.

Answer 13

4.

To determine

Introduction: Vertical analysis is done as a comparison or defining of the relationship between the items of the same year. The representation is done vertically by determining the relative contribution made by each item to a particular item of the same year.

The portion cost of goods sold to make up for sales is a greater portion or not, income as a percent of sales improve in the most recent year or not, and the growth of plant assets over the period.

Answer 14

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Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 13 - Prob. 1QS Ch. 13 - Prob. 2QS Ch. 13 - Prob. 3QS Ch. 13 - Prob. 4QS Ch. 13 - Prob. 5QS Ch. 13 - Prob. 6QS Ch. 13 - Prob. 7QS Ch. 13 - Prob. 8QS Ch. 13 - Prob. 9QS Ch. 13 - Prob. 10QS

Financial ratios help in comparing the performance of the company with its previous performance as well as that of competitors in the industry. They are divided into four building blocks. These blocks are liquidity and efficiency, solvency, profitability, and market prospects. The current ratio .

Introduction: Vertical analysis is done as a comparison or defining the relationship between the items of the same year. The representation is done vertically by determining the relative contribution made by each item to a particular item of the same year. To prepare: The common-size percent.

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Chapter 13 Solutions

Introduction: Vertical analysis is done as a comparison or defining the relationship between the items of the same year. The representation is done vertically by determining the relative contribution made by each item to a particular item of the same year.

To prepare: The common-size percent.