4. Can a current ratio be lower than the quick ratio? 5. Is a high current ratio always good? Is a low current ratio always bad? 6. What factors affect company's decisions in managing current ratio?
4. Can a current ratio be lower than the quick ratio? 5. Is a high current ratio always good? Is a low current ratio always bad? 6. What factors affect company's decisions in managing current ratio?
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter17: Financial Statement Analysis
Section17.2: Vertical Analysis Of A Balance Sheet
Problem 1OYO
Related questions
Question
4. Can a current ratio be lower than the quick ratio?
5. Is a high current ratio always good? Is a low current ratio always bad?
6. What factors affect company's decisions in managing current ratio?
![Provide Ratio analysis of the following companies and answer the following questions.
Show the statement of financial position of three companies: Jollibee, Petron, and Globe.
JFC
Petron
Globe
ASSETS
Current assets
Cash
7,619
90.602
16,757
Receivables
7,621
17,927
23,543
Inventories
5,972
53,180
3,186
Other current assets
2,810
57,320
3,256
24,022
219,029
46,742
Non-current Assets
Property, plant and equipment
13,364
153,650
117,299
Financial Investments
3,410
1,613
451
Other non-current assets
13,323
17,032
15,015
30,097
172,295
132,765
TOTAL ASSETS
54,119
391,324
179,507
LIABILITIES
Current Liabilities
Accounts Payable
2,455
29,496
12,458
Income Tax Payable
182
73
1,587
Short-term debt
1,865
133,388
Other current liabilities
14,589
39,630
46,305
19,091
202,587
60,350
Non-current Liabilities
Long-term Debt
4,428
66,269
59,146
Other Liabilities
2,522
8,776
5,473
6,950
75.95
64,619
TOTAL LIABILITIES
26,041
277,634
124,969](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fee695d9c-aa54-4820-9347-e71f7798a41a%2F75ec43f3-5fcf-4cbd-9016-78c2ec6b926d%2Fd5mpbbh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Provide Ratio analysis of the following companies and answer the following questions.
Show the statement of financial position of three companies: Jollibee, Petron, and Globe.
JFC
Petron
Globe
ASSETS
Current assets
Cash
7,619
90.602
16,757
Receivables
7,621
17,927
23,543
Inventories
5,972
53,180
3,186
Other current assets
2,810
57,320
3,256
24,022
219,029
46,742
Non-current Assets
Property, plant and equipment
13,364
153,650
117,299
Financial Investments
3,410
1,613
451
Other non-current assets
13,323
17,032
15,015
30,097
172,295
132,765
TOTAL ASSETS
54,119
391,324
179,507
LIABILITIES
Current Liabilities
Accounts Payable
2,455
29,496
12,458
Income Tax Payable
182
73
1,587
Short-term debt
1,865
133,388
Other current liabilities
14,589
39,630
46,305
19,091
202,587
60,350
Non-current Liabilities
Long-term Debt
4,428
66,269
59,146
Other Liabilities
2,522
8,776
5,473
6,950
75.95
64,619
TOTAL LIABILITIES
26,041
277,634
124,969
![JFC
Petron
Globe
EQUITY
Capital Stock
1,064
9,485
8,429
Additional Paid-in Capital
4,452
19,653
36,049
Retained Earnings
22,646
40,815
10,852
Other Equity Accounts
(84)
43,739
(792)
Total Equity
28,078
113,692
54,538
TOTAL LIABILITIES AND EQUITY
54,119
391,324
179,507
Sales Revenue
90,671
482,535
103,235
Cost of Sales/Service
(73,728)
(463,100)
(10,661)
Gross Margin
16,943
19,435
92,574
Operating Expenses
(10,806)
(11,830)
(59,506)
Operating Profie
6,137
7,605
33,068
Other Income
748
1,736
1,255
Other Expenses
(126)
(5,528)
(14,940)
Net Income Before Tax
6,759
3,813
19,383
Income Tax
(1,271)
(804)
(6,011)
Cast
Net Income After Tax
5,488
3,009
13,372](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fee695d9c-aa54-4820-9347-e71f7798a41a%2F75ec43f3-5fcf-4cbd-9016-78c2ec6b926d%2Fg30axk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:JFC
Petron
Globe
EQUITY
Capital Stock
1,064
9,485
8,429
Additional Paid-in Capital
4,452
19,653
36,049
Retained Earnings
22,646
40,815
10,852
Other Equity Accounts
(84)
43,739
(792)
Total Equity
28,078
113,692
54,538
TOTAL LIABILITIES AND EQUITY
54,119
391,324
179,507
Sales Revenue
90,671
482,535
103,235
Cost of Sales/Service
(73,728)
(463,100)
(10,661)
Gross Margin
16,943
19,435
92,574
Operating Expenses
(10,806)
(11,830)
(59,506)
Operating Profie
6,137
7,605
33,068
Other Income
748
1,736
1,255
Other Expenses
(126)
(5,528)
(14,940)
Net Income Before Tax
6,759
3,813
19,383
Income Tax
(1,271)
(804)
(6,011)
Cast
Net Income After Tax
5,488
3,009
13,372
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