EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN: 9781337514835
Author: MOYER
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Question
Chapter 16, Problem 3P
a)
Summary Introduction
To determine: The length of inventory conversion period.
b)
Summary Introduction
To determine: Length of receivables conversion period.
c)
Summary Introduction
To determine: Length of the operating cycle.
d)
Summary Introduction
To determine: Length of payables deferral period.
e)
Summary Introduction
To determine: Length of the cash conversion cycle.
f)
Summary Introduction
To discuss: The meaning of the number calculated in part (e).
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Students have asked these similar questions
1))For the years ended December 31, 2018 of your analysis, assume all sales are on credit and then compute the following:
· (a) collection period,
· (b) accounts receivable turnover,
· (c) inventory turnover, and
· (d) days' sales in inventory.
· (e) Based on your estimates, comment on the changes in the ratios from 2018 year by drawing conclusion regarding efficiency in managing inventory and in collecting receivables (Note: Comment not more than 10 lines).
2))Provide your recommendations for improving the financial condition of your company. (Note: Comment not more than 10 lines).
Compute the following the financial data for this year . 1.accountes receivable turnover
2. Average collection period
3. Inventory turnover
4. Average sale period
5. Operating cycle
6. Total asset turnover
1. Compute the following ratios for the comparative periods (2018 and 2019). The company used 365 days in its computation for some of the ratios. Show your solution.
d. Accounts Receivable Turnover Ratio
e. Average Collection Period
f. Inventory Turnover Ratio
g. Average Days in Inventory
h. Number of days in Operating Cycle
i. Debt to Total Assets Ratio
j. Debt to Equity Ratio
k. Times Interest Earned Ratio
l. Gross Profit Ratio
m. Profit Margin Ratio
n. Return on Assets
o. Return on Equity
p. Assets Turnover Ratio
Chapter 16 Solutions
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Ch. 16 - Prob. 1QTDCh. 16 - Prob. 2QTDCh. 16 - Prob. 3QTDCh. 16 - Prob. 4QTDCh. 16 - Prob. 5QTDCh. 16 - Prob. 6QTDCh. 16 - Prob. 7QTDCh. 16 - Prob. 8QTDCh. 16 - Prob. 9QTDCh. 16 - Prob. 10QTD
Ch. 16 - Prob. 11QTDCh. 16 - Prob. 12QTDCh. 16 - Prob. 13QTDCh. 16 - Prob. 14QTDCh. 16 - Prob. 15QTDCh. 16 - Prob. 16QTDCh. 16 - Prob. 17QTDCh. 16 - Prob. 18QTDCh. 16 - Prob. 19QTDCh. 16 - Prob. 20QTDCh. 16 - Prob. 21QTDCh. 16 - Prob. 22QTDCh. 16 - Prob. 23QTDCh. 16 - Prob. 24QTDCh. 16 - Prob. 1PCh. 16 - Prob. 2PCh. 16 - Prob. 3PCh. 16 - Prob. 4PCh. 16 - Prob. 5PCh. 16 - Prob. 6PCh. 16 - Prob. 7PCh. 16 - Prob. 8PCh. 16 - Prob. 9PCh. 16 - Prob. 10PCh. 16 - Prob. 11PCh. 16 - Prob. 12PCh. 16 - Prob. 13PCh. 16 - Prob. 14PCh. 16 - Prob. 15PCh. 16 - Prob. 16PCh. 16 - Prob. 17PCh. 16 - Prob. 18PCh. 16 - Prob. 19PCh. 16 - Prob. 20PCh. 16 - Prob. 21PCh. 16 - Prob. 22PCh. 16 - Prob. 23PCh. 16 - Prob. 24PCh. 16 - Prob. 25PCh. 16 - Prob. 26PCh. 16 - Prob. 27PCh. 16 - Prob. 28PCh. 16 - Prob. 29PCh. 16 - Prob. 30PCh. 16 - Prob. 31PCh. 16 - Prob. 32PCh. 16 - Prob. 33PCh. 16 - Prob. 34P
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Similar questions
- After reviewing the information, calculate the following ratios for 2021. 1) Inventory turnover2) Profit margin3) Return on assets4) Free cash flow Round all answers to two decimal places.arrow_forwardAfter reviewing the information, calculate the following ratios for Nestlé for 2021:1) Inventory turnover2) Profit margin3) Return on assets4) Free cash flowRound all answers to two decimal places.arrow_forwardRequired: (a) You are required to calculate the following ratios:(i) Gross profit margin(ii) Operating profit margin(iii) Expenses to sales(iv) Return on Capital Employed(v) Asset turnover(vi) Non-current asset turnover(vii) Current Ratio(viii) Quick Ratio(ix) Inventory days(x) Receivables days(xi) Payable days(xii) Interest cover (b) In light of your calculations comment on the performance of the company over thelast two years.arrow_forward
- 5. Compute the following financial ratios for 2015 and 2016 and interpreting the results in the image attached: (1 decimal place) d. age of receivables e. inventory turnover f. age of inventory g. asset turnover h. fixed asset turnover i. times interest earned j. debt ratio k. equity ratio l. debt to equity ratio m. gross profit margin n. return on equity o. return on assetsarrow_forward5. Compute the following financial ratios for 2015 and 2016 and interpreting the results in the image attached: (1 decimal place) a. current ratio b. quick ratio c. receivable turnover d. age of receivables e. inventory turnover f. age of inventory g. asset turnover h. fixed asset turnover i. times interest earned j. debt ratio k. equity ratio l. debt to equity ratio m. gross profit margin n. return on equity o. return on assetsarrow_forward1. Compute the following ratios for the comparative periods (2018 and 2019). The company used 365 days in its computation for some of the ratios. Show your solution. a. Working Capital b. Current Ratio c. Acid Test Ratio d. Accounts Receivable Turnover Ratio e. Average Collection Period f. Inventory Turnover Ratio g. Average Days in Inventory h. Number of days in Operating Cycle i. Debt to Total Assets Ratio j. Debt to Equity Ratio k. Times Interest Earned Ratio l. Gross Profit Ratio m. Profit Margin Ratio n. Return on Assets o. Return on Equity p. Assets Turnover Ratioarrow_forward
- Using both the balance sheet (Table 4–4) and the income statement(Table 4–7) for the MLC, answer the following:a. Calculate the following ratios for 2013: inventory turnover, fixed asset turnover,and total asset turnover.b. In a written explanation, describe what each ratio means.c. In a brief paragraph, describe how well you believe the MLC is managingits assets.arrow_forwardConsider the following company’s balance sheet and income statement. For this company, calculate the following: Current ratio. Number of days’ sales in receivables. Sales to total assets.arrow_forwardFollowing are the financial statements of ABC Ltd. for 2010 Requirement: Calculate and interpret following ratios: 1. Current ratio 2. Liquid ratio 3. Receivables turnover ratio and collection period 4. Inventory turnover and holding period 5. Fixed assets turnoverarrow_forward
- Compute the following ratiosat December 31, 2019: i.Current ratio ii.Acid-test Ratio iii.Account Receivables Turnover iv.Average collection period v.Inventory Turnover vi.Days in inventory vii.Profit margin viii.Debts to Asset ratio ix.Return on Assets x.Times Interest Earnedarrow_forwardWhich of the following is included in the numerator of the Acid-Test Ratio calculation (check all that apply) A. Supplies B. Net Current Receivables C. Short-Term Investments D. Merchandise Inventory Which of the following ratios helps measure a company's ability to pay its current liabilities? (check all that apply) A. Accounts Receivable Turnover B. Days' Sales in Inventory C. Acid Test Ratio D. Cash Ratioarrow_forwardNeed to calculate for the "YEAR" 2013. quick ratio, fixed assets turnover ratio, inventory turnoverarrow_forward
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