COMPUTE FOR THE LIQUIDITY, SOLVENCY, EFFICIENCY AND PROFITABILITY USING THE DIFFERENT FORMULAS IN EACH CATEGORY.
Q: Calculate the following ratios: return on equity, return on assets (levered), return on sales…
A: Ratio analysis helps business to know the financial position of it using the interpretation of the…
Q: Explain profit margin
A: Profit margin is one of the benefits proportions that's generally utilized to assess the level to…
Q: why it is important to use profitability ratios
A: Ratio analysis is an evaluation tool used by the businesses with a view to obtain knowledge about…
Q: Match the ratio to the building block of financial statement analysis to which it best relates.A.…
A: A) Liquidity and efficiency: Liquidity and efficiency refers to the ability of the concern to meet…
Q: Which balance sheet might be most useful to an investor? a. U.S. GAAP balance sheet b. IFRS GAAP…
A: IFRS is principal based.
Q: Briefly explain the difference between liquidity, solvency, and profitability analysis.
A: Financial ratios are the metrics used to evaluate the liquidity, profitability, solvency and overall…
Q: PROFITABILITY RATIOS
A: Gross profit margin is stable for initial year but tends to reduce in future. Return on sales…
Q: Identify and write out the equations for four profitability ratios.
A: Profitability ratios state the efficiency of the company in turning revenue into profits. Company…
Q: Profitability
A: Profitability is the prime purpose of every business. Every corporation tries to maximize its…
Q: How to calculate profitability analysis?
A: Sales revenue: It is the revenue earned by a business on selling the goods or providing services to…
Q: Explain price/cash flow ratio
A: Answer: Price to cash flow is determined through the division of price per share by cash flow per…
Q: How to calculate the Profitability index?
A: Profitability Index: It is a measure used in capital budgeting of the project's or investment's…
Q: What are the three main profitability ratios, and howis each calculated?
A: Ratio analysis is the method of checking the company's operational efficiency, liquidity, and…
Q: Name two ratios that are used to measure financial leverage and write their equations.
A: The two ratios that are used to measure financial leverage is shown below: Debt Ratio – It tells…
Q: Analyze the profitability graph that illustrates the factors/accounts that are needed to calculate…
A: The profitability graph: The profitability graph depicts all the inputs that are needed to compute…
Q: Ca) Calculate liquidity ratios and interpret your answer
A: Liquidity ratio gives an idea of how much cash and cash equivalent the Company has in hand after…
Q: Match the ratio to the building block of financial statement analysis to which it best relates.A.…
A: Definition: Assets: These are the resources owned and controlled by business and used to produce…
Q: Explain the difference between liquidity, solvency and profitability analysis.
A: Liquidity analysis is the analysis by using ratios to determine the ability of company in repaying…
Q: Discuss each group of ratio’s relationship to the balance sheet and income statement. Liquidity…
A: Ratio Analysis is a quantitative tool or method used for gaining insights into a company's…
Q: Discuss cost-benefit analysis and financial analysis tools
A: Answer: Cost-benefit analysis: It is nothing but a process of decision making that balances the…
Q: Calculate and analyze the financial ratio from Liquidity, Profitability, Activity, Solvency and…
A: Financial ratio is an arithmetic expression used to describe the significant relationship between…
Q: Match the ratio to the building block of financial statement analysis to which it best relates.A.…
A: Accounts receivable turnover ratio = Net credit sales / Average Accounts receivable.
Q: Discuss the importance and differences of liquidity, solvency and profitability.
A: Liquidity is the ability to turn an asset into cash or cash equivalent with ease. Solvency is the…
Q: What are the three components that can be described as the profit margin?
A: Income minus expenses gives us profit. The profit margin is the percentage of profits on sales or…
Q: Define each of the following terms: c. Net present value (NPV) method; internal rate of return (IRR)…
A: Net present value (NPV) is the contrast between the present value of money inflows over some…
Q: Trend analysis of net profit margin and leverage ratios help in identtyi
A: There are various types of risk a businessman needs to evaluate before starting up the business. The…
Q: Explain profitability index
A: Profitability index is a financial tool which tells us whether an investment should be accepted or…
Q: Compute the following ratio analysis: Operating Profit Margin Net Profit Margin Write your…
A: Current Year: Net Sales = 120,000 Operating Income = 43,000 Net Income = 35,000 Prior Year: Net…
Q: Explain an example how to calculate accounting rate of return.
A: The accounting rate of return (ARR) is the percentage rate of return expected on investment or asset…
Q: The effects of financial choices can be understood by performing which of these? Check two. O Micro…
A: Decision making is the most important function of management. But when it comes to financial…
Q: Find the coverage ratio and profitability ratio
A: Ratio analysis is used for measuring the financial efficiency, profitability and revenue of an…
Q: how value drivers (Return on Equity, Net Profit Margin, and Total Asset Turnover) are related to…
A: Financial statements: Financial statements are the summary of transactions presented in the form of…
Q: What are the different profitability ratios?
A: Profitability ratios are the measure which is used to depict the profitability position of the…
Q: Identify six profitability ratios, and write their equations.
A: A quantitative method that provides information about the company including its liquidity,…
Q: Use the attached information to complete the ratio analysis. The Ratio Analysis is for…
A: Ratio analysis is useful to measure the financial performance of the company and helpful to make…
Q: i) Profitability index
A: The profitability index (PI) is one of the capital budgeting tools that help to evaluate whether the…
Q: Use the attached information to complete the ratio analysis. The Ratio Analysis is for Liquidity,…
A: Ratio analysis is a quantitative method of gaining insight into a company's liquidity, operational…
Q: Perform a profitability analysis
A: Profit is very important element of the business. Every business wants to have maximum profit in its…
Q: Define solvency and profitability. How are they alike?
A: Answer: Solvency is status of company when the asset is higher than liabilities. Profitability is…
Q: What is the relationship between NPV and profitability index (PI)?
A: The concept of net present value is used to decide whether to invest in an investment or not. It is…
Q: Define the terms market value added (MVA) and economic value added (EVA).
A: The concept of economic value added was developed by Stern Stewart & co & is also known as…
Q: Do you use an income-statement strategy?
A: The income statement is one of three financial statements of an entity.(The others are the balance…
Q: What do the Profitability ratios show?
A: Profitability Ratio Profitability Ratio is basically a tool to assess a company's ability to…
Q: C. Liqu
A: Answer: The statement of financial position is useful for analyzing all of the following except…
Q: Describe the common profitability measures.
A: Common profitability measures include profitability ratios such as ROE, ROA, profit margin etc They…
COMPUTE FOR THE LIQUIDITY, SOLVENCY, EFFICIENCY AND PROFITABILITY USING THE DIFFERENT FORMULAS IN EACH CATEGORY.
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- The comparative balance sheets for Metlock Corporation show the following information. December 312020 2019Cash $33,500 $12,900Accounts receivable 12,400 10,000Inventory 12,100 9,000Available-for-sale debt investments –0– 3,000Buildings –0– 29,800Equipment 44,800 19,900Patents 5,000 6,300 $107,800 $90,900Allowance for doubtful accounts $3,100 $4,500Accumulated depreciation—equipment 2,000 4,500Accumulated depreciation—building –0– 6,000Accounts payable 5,000 3,000Dividends payable –0– 4,900Notes payable, short-term (nontrade) 3,000 4,100Long-term notes payable 31,000 25,000Common stock 43,000 33,000Retained earnings 20,700 5,900 $107,800 $90,900 Additional data related to 2020 are as follows. 1. Equipment that had cost $11,000 and was 40% depreciated at time of disposal was sold for $2,500.2. $10,000 of the long-term note payable was paid by issuing common stock.3. Cash dividends paid were $4,900.4. On January…Sandhill Co. reported the following information for 2020: Sales revenue $2520000 Cost of goods sold 1748000 Operating expenses 282000 Unrealized holding gain on available-for-sale securities 85700 Cash dividends received on the securities 9200 For 2020, Sandhill would report comprehensive income of A.$85700. B.$499200. C.$575700. D.$584900.Use the common-size financial statements found here: ommon-Size Balance Sheet 2016Cash and marketable securities $ 480 1.5 %Accounts receivable 6,030 18.2Inventory 9,540 28.8Total current assets $ 16,050 48.5 %Net property, plant, and equipment 17,020 51.5Total assets $33,070 100.0 %Accounts payable $ 7,150 21.6 %Short-term notes 6,850 20.7Total current liabilities $ 14,000 42.3 %Long-term liabilities 7,010 21.2Total liabilities $ 21,010 63.5 %Total common shareholders’ equity 12,060 36.5Total liabilities and shareholders’ equity $33,070 100.0 %Common-Size Income Statement 2016Revenues $ 30,000 100.0 %Cost of goods sold (20,050) 66.8Gross profit $ 9,950 33.2 %Operating expenses (7,960) 26.5Net operating income $ 1,990 6.6 %Interest expense (940) 3.1Earnings before taxes $ 1,050 3.5 %Income taxes (382) 1.3Net income $668 2.2 % Specifically, write up a brief narrative that responds to the following questions: a. How much cash does Patterson have on hand relative to its total…
- JUST DEW IT CORPORATION2017 and 2018 Balance Sheets Assets Liabilities and Owners' Equity 2017 2018 2017 2018 Current assets Current liabilities Cash $ 10,150 $ 10,350 Accounts payable $ 74,500 $ 61,250 Accounts receivable 27,100 27,250 Notes payable 48,500 49,250 Inventory 62,900 63,500 Total $ 123,000 $ 110,500 Total $ 100,150 $ 101,100 Long-term debt $ 59,400 $ 64,900 Owners' equity Common stock and paid-in surplus $ 80,000 $ 80,000 Fixed assets Retained earnings 171,750 192,700 Net plant and equipment $ 334,000 $ 347,000 Total $ 251,750 $ 272,700 Total assets $ 434,150 $ 448,100 Total liabilities and owners' equity $ 434,150 $ 448,100 Based on the balance sheets given for Just Dew It, calculate the following…ABC Industry and Trade Inc. Balance Sheet as of 31.12.2020 (TL) transactions ASSETS(Assets) I-Current Assets Ready Values Securities Commercial debts Stocks Other Current Assets Current Assets Total I-Fixed Assets Financial Fixed Assets Tangible Fixed Assets Total Fixed Assets TOTAL ASSETS 31.12.2020 Amount Vertical Percent (%) 360.000 12 45.000 1.5 870.000 29 840.000 28 255.000 8.5 2.370.000 79 390.000 13 240.000 8. 630.000 21 3.000.000 100 LIABILITIES(RESOURCES) l-Short Term Liv. resources Financial Debts Trade payables Short Term Foreign Resource Total Il-Long-Term Liabilities Financial Debts Long Term Liv. Source Ball. III-Equity Paid-in capital Profit Reserves Net profit for the period Previous Year's profit Total Equity TOTAL LIABILITIES (RESOURCES) 39.000 1.3 120.000 4 159.000 5.3 81.000 2.7 81.000 2.7 120.000 4 420.000 14 1.950.000 65 270.000 9 2.760.000 92 3.000.000 100 Requested: Calculate the vertical percentages of the Balance Sheet items of ABC Sanayi ve Ticaret A.Ş. dated…Comparative balance sheets for Hamilton Company are presented below. Hamilton Company Comparative Balance Sheet Decemebr 31 Assets 2017 2016 Cash 78000 12000 Accoutns Receivable 93000 76000 Inventory 180000 189000 Land 75000 100000 Equipemnt 250000 210000 Accu Dep - Equipment (66,000) (42,000) Total 610000 545000 Liability and Equity Accounts Payable 34000 47000 Bonds Payable 150000 200000 Common Stock ($1 Par ) 214000 164000 Retained Earnings 212000 134000 Total 610000 545000 Additional information: 1. Net income for 2017 was $134000 2. Cash dividends of $65,000 were declared and paid. 3. Bonds payable amounting to $50,000 were redeemed for cash $50,000.…
- l-Itihad Corporation Balance SheetDecember 31, 2019AssetsLiability & EquityCurrent AssetsCurrent LiabilityCash$5,000Accounts payable22,000Short term securities10,000Accrual Account8,000Account Receivables30,000Short term debt6,000Inventory32,000Total Current Liability36,000Long-term debt40,000Total Current Assets77,000TotalLiability76,000Long term AssetsEquityNet Property & equipment70,000CommonStocks64,000Retained earnings17,000Total Equity81,000Total Liability and Equity157,000Other assts 10000Total Assets157,000Sur Corporation Income StatementDecember 31, 2019Other Financial information of Sur corporation December 31, 2019Net sales (revenue)$150,000· Average Number of Common shares outstanding 16,000 Shares· Market price of Common share $3.5Cost of goods sold80,000Gross profit70,000Operating expenses30,000EBIT- (Operating profit)40,000Interest expense10,000EBT- ( Earnings before taxes)30,000Income tax 10,000Net Income (net profit)20,000You have to find the following ratios…Seminole Corporation reported the following items at December 31, 2021, and 2020: (Click the icon to view the comparative financial information.) Read the requirements. Requirement 1. Compute the company's (a) quick (acid-test) ratio and (b) days' sales outstanding for 2021. Evaluate each ratio value as strong or weak. All sales are on account with terms of net 30 days. (a) Enter the formula and calculate the quick (acid-test) ratio for 2021. (Abbreviation used: Cash* = Cash and cash equivalents. Round your final answer to two decimal places.) Cash* + Short-term investments + Net current receivables + Total current liabilities = Quick (acid-test) ratio $ Seminole's quick (acid-test) ratio is considered fairly weak. (b) Select the formula and calculate Seminole's days' sales outstanding for 2021. (Round interim calculations to two decimal places, XX.XX. Round the days' sales outstanding up to the next whole day.) Accounts receivable turnover = + Days' sales outstanding Seminole's days'…Compared to the ROE in 2020, the ROE in 2021 has Improved / 6.65% Improved / 3.43% Worsened / -6.65% Worsened / -3.43% Stayed the same / 0% by
- Cullumber Corporation reported the following information for 2021: Sales revenue Cost of goods sold Operating expenses Unrealized holding gain on available-for-sale securities Cash dividends received on the securities $1034000 For 2021, Cullumber would report comprehensive income of $241956. $237820. $200596. O $41360. 723800 113740 41360 4136Xyz tradingCondensed comparative balance sheet 2021 2020 2019Assets:Current assets 468,000. 345,600. 300,000Property and equipment 600,000. 560,400. 500,400Other assets(advances ). 72,000. 126,000. 150,000Total assets. 1,140,000. 1,032,000. 950,400Liabilities and stockholders’ equityLiabilitiesCurrent liabilities 134,400. 112,800. 100,00012 % long-term notes payable. 240,000. 300,000 350,000Total liabilities. 374,400. 412,800. 450,000Stockholders’ equity10% preferred stock 120,000. 120,000. 120,000Common stock 300,000 240,000 200,000Additional paid in capital 84,000. 48,000 40,000Retained earnings…Sunland Company reported the following information for 2025: Sales revenue Cost of goods sold Operating expenses Unrealized holding gain on available-for-sale debt securities Cash dividends received on the securities O $490300. O $404600. $480700. $2420000 O $85700. 1754000 271000 85700 For 2025, Sunland would report comprehensive income (ignoring tax effects) of 9600