Completing requirement 3.There are three choice for the first black: a. Converting some accounts receivables to long-term note receivableb. Just continuing to use of credit cardsc. Offering discount for early paymentsThere are three choices for the second blank:a. Decreasing penalties for late paymentb. Emphasising credit cards for sales c. Compute these ratios for 2020 and 2019:1 Comparative financial dataa. Current ratiob. Acid-test ratioC. Days' sales in receivablesWrite a memo explaining to top management which ratio value- Recommend two ways for Sunset Pools to improve cash flow(in millions)er the overall trend is favourable or202020192018equirement 1a. Compute the current ratios for 2020 and 2019.Balance sheet20202019Current assets:Current ratio2.011.74Cash82 $62 $66Short-term investments130168113Requirement 1b. Compute the acid-test ratios for 2020 and 2019,Receivables, net of allowance for20202019uncollectible accounts of S27,Acid-test ratio1.150.96S21, and $15, respectively246249271final answer to the nearest day.)Requirement 1c. Compute the days' sales in receivables ratios forInventories33437036320202019112328Prepaid expenses841Days' sales inreceivables31 days35 days803 S872 $Total current assets400 $501 $413State whether the overall trend is favouraTotal current liabilitiesRequirement 2. Write a memo explaining to top management whicIncome statementMEMORANDUM$ 2,896 $ 2,721 $ 2,209Net salesTO:Top management of Gold Pools Inc.FROM:Student NamePrintDoneRE:Changes in ratio values from 2019 to 2020is favourable forthe company because it shows that the company has improved its ability to meet its financial obligationsimprovedfrom 2019 to 2020. This trendThe three ratiosand/orRequirement 3. Recommend two ways for Gold Pools to improve cash flow from receivables.Gold Pools can improve cash flow from receivables byClear AllClick to select your answer(s) and then click Check Answer.File Explor... W WordPDo Home...All parts showingChapter 4...Course H...Type here to search%24%24

The cash flow can be defined inflow and outflow of the cash and its equivalent in the business…

Answered: Completing requirement 3.

Business

Accounting

Completing requirement 3.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 80BPSB: Ratio Analysis Consider the following information taken from Chicago Water Slides (CWSs) financial...

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Ratio Analysis Consider the following information taken from Chicago Water Slides (CWSs) financial statements: Also, CWSs operating cash flows were $25,658 and $29,748 in 2019 and 2018, respectively. Note: Round all answers to two decimal places. Required: 1. Calculate the current ratios for 2019 and 2018. 2. Calculate the quick ratios for 2019 and 2018. 3. Calculate the cash ratios for 2019 and 2018. 4. Calculate the operating cash flow ratios for 2019 and 2018. 5. CONCEPTUAL CONNECTION Provide some reasons why CWSs liquidity may be considered to be improving and some reasons why it may be worsening.
Problem 1: Viance Queen Company Required: Compute for the company’s profitability and operating efficiency ratios for 2019 Compute for the financial health ratios of the company for 2019 A.Profitability ratio a. Return on Assets: ROA (NI/Total Assets) ROA (NI/Average Assets) ROA (EBIT/Total Assets) ROA (EBIT/Average Assets) ROE (NI/Capital) ROE (NI/Average Capital
DIRECTION: Compute the following PROFITABILITY RATIOS Gross Margin= Gross Profit/Net Sales Net Profit Margin= Net Profit/ Net Sales Return on Equity= Profit/Shareholder's Equity Return on Asset= Profit/Total Asset TREND ANALYSIS Net Income Growth Rate Total Assets Growth Rate And also compute the percentage beside the columns December 31, December 31, PERCENTAGE 2021 2020 USD USD Assets Current assets Cash and cash equivalents 34,115,412 25,681,845 Short-term financial instruments 71,417,748 80,798,680 Short-term financial assets at amortized cost 2,944,705 2,409,853 Short-term financial assets at fair value through profit or loss 35,624 62,452 Trade receivables 35,585,565 27,065,012 Non-trade receivables 3,930,828 3,150,548 Prepaid expenses 2,042,001 1,980,685 Inventories 36,172,043 28,007,314 Other current assets 4,441,629 3,281,589 Assets held-for-sale - 812,370 Total Current Assets…
Calculate the Quick Ratio using the following information: Cash Short Term Investments Accounts Receivable Inventory Other Current Assets Total Current Assets Long Term Assets Current Liabilities Long Term Liabilities 2.00 2.30 O 2.50 O 2.45 5,000 1,000 2,000 1,200 600 9,800 12,000 4,000 3,000
PLASMA SCREENS CORPORATION Balance Sheets December 31, 2021 and 2020 2021 2020 Assets Current assets: Cash Accounts receivable Inventory Investments $242,000 98,000 105,000 5,000 $ 130,000 102,000 90,000 3,000 Long-term assets: Land Equipment Less: Accumulated depreciation 580,000 890,000 (528,000) $1,392,000 580,000 770,000 (368,000) $1,307,000 Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payab le Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings $ 109,000 7,000 9,000 95,000 13,000 6,000 2$ 110,000 220,000 800,000 357,000 $1,392,000 $1,307,000 800,000 173,000 Total liabilities and stockholders' equity Additional information for 2021: 1. Net income is $184,000. 2. Sales on account are $1,890,000. 3. Cost of goods sold is $1,394,250.
Income statement and balance sheet data for The Athletic Attic are provided below.Required: 1. Calculate the following risk ratios for 2021 and 2022: a. Receivables turnover ratio. c. Current ratio. b. Inventory turnover ratio. d. Debt to equity ratio. 2. Calculate the following profitability ratios for 2021 and 2022: a. Gross profit ratio. c. Profit margin. b. Return on assets. d. Asset turnover. 3. Based on the ratios calculated, determine whether overall risk and profitability improved from 2021 to 2022.
Problem 1: Viance Queen Company Required: Compute for the company’s profitability and operating efficiency ratios for 2019 Compute for the financial health ratios of the company for 2019 A.Profitability ratio Return on Assets: ROA (EBIT/Average Assets) ROE (NI/Capital) ROE (NI/Average Capital
1. Compute for the financial health ratios of the company for 2019 C.Financial Health/ (Solvency and Liquidity) Solvency ratio: d. Interest Coverage Ratio Liquidity ratio: a. Current Ratio b. Quick Ratio
Problem 1: Viance Queen Company Required: Compute for the company’s profitability and operating efficiency ratios for 2019 Compute for the financial health ratios of the company for 2019 A.Profitability ratio a.Gross Profit Ratio b. Operating income margin c. Net profit margin d. Return on Assets: ROA (NI/Total Assets) ROA (NI/Average Assets) ROA (EBIT/Total Assets) ROA (EBIT/Average Assets) ROE (NI/Capital) ROE (NI/Average Capital B.Operating Efficiency a. Asset Turnover b. Fixed Asset Turnover c. Inventory Turnover d. Days in Inventory e. AR Turnover f. Days in AR C.Financial Health/ (Solvency and Liquidity) Solvency ratio: a. Debt to equity ratio b. Debt Ratio c. Equity Ratio d. Interest Coverage Ratio Liquidity ratio: a. Current Ratio b. Quick Ratio
1. Compute for the financial health ratios of the company for 2019 C.Financial Health/ (Solvency and Liquidity) Solvency ratio: a. Debt to equity ratio b. Debt Ratio c. Equity Ratio d. Interest Coverage Ratio Liquidity ratio: a. Current Ratio b. Quick Ratio
ACCOUNTING ASAP Assume the following data: EBIT = 100; Depreciation = 40; Interest = 20; Dividends = 10. Calculate the cash coverage ratio. Select one: a. 7.0x b. 4.7x c. 14.0x d. 5.0x
Required: Compute the following ratios for 2020: 1. Current Ratio 2. Quick Ratio 3. Receivable Turnover 4. Average Collection Period 5. Inventory Turnover 6. Average Sales Period 7. Working Capital 8. Debt Ratio 9. Equity Ratio 10. Debt to Equity Ratio 11. Time Interest Earned 12. Gross Profit Ratio 13. Operating Profit Margin 14. Net Profit Margin 15. Return on Assets