FINANCIAL ACCOUNTING
6th Edition
ISBN: 9781618533111
Author: DYCKMAN
Publisher: Cambridge Business Publishers
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Chapter 2, Problem 51P
a.
To determine
Compare and discuss the manner in which Corporation c and Incorporation V finance their operations.
b.
To determine
Identify the company that reports higher ratio of income to assets and explain the reason.
c.
To determine
Identify the firm that is likely to raise capital in a better way.
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Evaluation: Financial Statements Analysis and Interpretations
Instructions:
1. Using the provided data below, prepare a Statement of Financial Position - Vertical
Analysis.
2. Compute for the following financial ratios and provide interpretation for each item.
a. Current Ratio
b. Working Capital
c. Debt-to-Equity Ratio
d. Debt Ratio
e. Asset Turnover Ratio
3. You may use any desired business name.
4. Use the space provided for your answer.
Given:
2017
2016
P 358,950.00
P 184,560.00
P 365,450.00
P 450,355.00
P 252,260.00
P 653,550.00
P 300,000.00
P 800,000.00
P 943,105.00
P 65,000.00
P 277,145.00
P 68,505.00
P 285,000.00
P 235,000.00
P 345,650.00
P 745,000.00
P 150,000.00
P 700,000.00
P 800,000.00
85,000.00
Accounts Payable
Accrued Expenses
Accounts Receivable
Cash
Inventory
Fixed Assets
Marketable Securities
Mortgage Payable
Owner's Capital
Prepaid Insurance
1. Download the financial statements of any company and do the following analysis?
a) Calculate and Comment on the gearing ratio of the companies?
b) Write a note on the nature of the capital structure of the company and highlight the importance of leverage in capital structure.
please mention the reference at the end
Analyze the financial statements of the company to you in terms of: 1. Profitability Ratio: *Operating Margin *Return on Total Assets *Return on Common Equity. *Return on Invested Capital *Basic Earnings Power Ratio2020 Analysis BUT also compare with 2018 - 2019.
Show solution on computaion.
Chapter 2 Solutions
FINANCIAL ACCOUNTING
Ch. 2 - Prob. 1MCCh. 2 - Prob. 2MCCh. 2 - Prob. 3MCCh. 2 - Prob. 4MCCh. 2 - Prob. 5MCCh. 2 - Prob. 1QCh. 2 - Prob. 2QCh. 2 - Prob. 3QCh. 2 - Prob. 4QCh. 2 - Prob. 5Q
Ch. 2 - Prob. 6QCh. 2 - Prob. 7QCh. 2 - Prob. 8QCh. 2 - Prob. 9QCh. 2 - Prob. 10QCh. 2 - Prob. 11QCh. 2 - Prob. 12QCh. 2 - Prob. 13QCh. 2 - Prob. 14MECh. 2 - Prob. 15MECh. 2 - Prob. 16MECh. 2 - Prob. 17MECh. 2 - Prob. 18MECh. 2 - Prob. 19MECh. 2 - Prob. 20MECh. 2 - Prob. 21MECh. 2 - Prob. 22MECh. 2 - Prob. 23MECh. 2 - Prob. 24MECh. 2 - Prob. 25MECh. 2 - Prob. 26MECh. 2 - Prob. 27MECh. 2 - Prob. 28MECh. 2 - Prob. 29MECh. 2 - Prob. 30MECh. 2 - Prob. 31MECh. 2 - Prob. 32MECh. 2 - Prob. 33MECh. 2 - Prob. 34ECh. 2 - Prob. 35ECh. 2 - Prob. 36ECh. 2 - Prob. 37ECh. 2 - Prob. 38ECh. 2 - Prob. 39ECh. 2 - Prob. 40ECh. 2 - Prob. 41ECh. 2 - Prob. 42ECh. 2 - Prob. 43ECh. 2 - Prob. 44ECh. 2 - Prob. 45ECh. 2 - Prob. 46ECh. 2 - Prob. 47ECh. 2 - Prob. 48ECh. 2 - Prob. 49PCh. 2 - Prob. 50PCh. 2 - Prob. 51PCh. 2 - Prob. 52PCh. 2 - Prob. 53PCh. 2 - Prob. 54PCh. 2 - Prob. 55PCh. 2 - Prob. 56PCh. 2 - Prob. 57PCh. 2 - Prob. 58PCh. 2 - Prob. 59PCh. 2 - Prob. 60PCh. 2 - Prob. 61PCh. 2 - Prob. 62PCh. 2 - Prob. 63PCh. 2 - Prob. 64PCh. 2 - Prob. 65PCh. 2 - Prob. 66PCh. 2 - Prob. 67PCh. 2 - Prob. 68PCh. 2 - Prob. 69PCh. 2 - Prob. 70PCh. 2 - Prob. 71CPCh. 2 - Prob. 72CP
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