Please answer the question below according to the information given in the attachment: a) Using the information provided for 31 Dec 2005, calculate the following: net working capital, current ratio, quick ratio, inventory turnover, average collection period, total debt ratio, gross profit margin, net profit margin, return on total assets, return on equity. b) Evaluate the company’s performance against industry average ratios and compare with last year’s results.
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Please answer the question below according to the information given in the attachment:
a) Using the information provided for 31 Dec 2005, calculate the
following: net
turnover, average collection period, total debt ratio, gross profit margin,
net profit margin, return on total assets, return on equity.
b) Evaluate the company’s performance against industry average ratios
and compare with last year’s results.
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- Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an accounting intern, who has asked for your guidance on how to prepare an income statement format that will be distributed to management. Subtotals and totals are included in the information, but you will need to calculate the values. A. In the correct format, prepare the income statement using the following information: B. Calculate the profit margin, return on investment, and residual income. Assume an investment base of $100,000 and 6% cost of capital. C. Prepare a short response to accompany the income statement that explains why uncontrollable costs are included in the income statement.You have been asked by your CEO to evaluate, analyze and calculate commonly used ratios relating to a company’s profitability, liquidity, solvency and management efficiency. Requirement: Complete the balance sheet and sales data (fill in the blanks), using the following financial data: Debt/net worth 60% x 37,000 = 22,200 (debt) = AP Acid test ratio 1.2 x 22,200 = 26,640 Asset turnover 1.5 times Day sales outstanding in accounts receivable 40 days Gross profit margin 30% Inventory turnover 6 times Balance sheet Cash…River Valley Production Inc. seeks to increase its market share and improve its results. The company takes as a starting point the current scenario and the results obtained in 2018 and 2019. Like other companies, River Valley uses financial ratios (ratios) as tools for analyzing the results obtained at the end of the period. Consider the data presented in the financial statements below and analyze the company's results based on the financial ratios.1. Use the financial statements to calculate the following financial ratios for the years 2018 and 2019:1.8 Return on Investment (ROI)1.9 Profit Margin1.10 Debt to Equity Ratio1.11 Price/Earning Ratio Balance Sheet 2018 2019 Cash $63,000 $201,000 Accounts Receivable 199,000 305,000 Marketable Securities 81,000 42,000 Inventories 441,000 455,000 Prepaids 5,000 9,000 Total Current Assets 789,000 1,012,000 Property, Plant, and Equipment, net 858,000 858,000…
- River Valley Production Inc. seeks to increase its market share and improve its results. The company takes as a starting point the current scenario and the results obtained in 2018 and 2019. Like other companies, River Valley uses financial ratios (ratios) as tools for analyzing the results obtained at the end of the period. Consider the data presented in the financial statements below and analyze the company's results based on the financial ratios.1. Use the financial statements to calculate the following financial ratios for the years 2018 and 2019:1.1 Current Ratio1.2 Quick Ratio1.3 Inventory Turnover Ratio 1.4 Days Sales Outstanding (DSO)1.5 Assets Turnover Ratio1.6 Return on Assets (ROA)1.7 Return on Equity (ROE)1.8 Return on Investment (ROI)1.9 Profit Margin1.10 Debt to Equity Ratio1.11 Price/Earning Ratio Balance Sheet 2018 2019 Cash $63,000 $201,000 Accounts Receivable 199,000 305,000 Marketable Securities 81,000 42,000 Inventories…River Valley Production Inc. seeks to increase its market share and improve its results. The company takes as a starting point the current scenario and the results obtained in 2018 and 2019. Like other companies, River Valley uses financial ratios (ratios) as tools for analyzing the results obtained at the end of the period. Consider the data presented in the financial statements below and analyze the company's results based on the financial ratios.1. Use the financial statements to calculate the following financial ratios for the years 2018 and 2019: 1.1 Days Sales Outstanding (DSO)1.2 Assets Turnover Ratio1.3 Return on Assets (ROA)1.4 Return on Equity (ROE) Balance Sheet 2018 2019 Cash $63,000 $201,000 Accounts Receivable 199,000 305,000 Marketable Securities 81,000 42,000 Inventories 441,000 455,000 Prepaids 5,000 9,000 Total Current Assets 789,000 1,012,000 Property, Plant, and Equipment, net 858,000 858,000…Your Task… Using your assigned financial statements calculate the required ratios below Indicate if the change from year to year is favorable or unfavorable. All values should be accurate to at least two decimal places. The expectation is to submit a professional report free of grammar and spelling errors and easy to read. Think of this as a menu you would be handing to a customer. All calculations are to be represented. Analysis of Profitability Gross Profit Ratio Operating Profit Ratio Net Profit Ratio Sales to Total Assets Ratio Return on Total Assets Return on Equity Earnings Per Share
- The new owners of Pak. Electric Co. have hired you to help them diagnose and cure problems that the company has had in maintaining adequate liquidity. As a first step, you perform a liquidity analysis. You then do an analysis of the company’s short-term activity ratios. Your calculations and appropriate industry norms are listed.RatiosCurrent RatioPak. Electric Co. 4.5Industry Average 4.0Quick RatioPak. Electric Co. 2.0Industry Average 3.1Inventory TurnoverPak. Electric Co. 6.0Industry Average 10.4Average Collection PeriodPak. Electric Co. 73 daysIndustry Average 52 daysAverage Payment PeriodPak. Electric Co. 31 days40 daysa. What recommendations relative to the amount and the handling of inventory could you make to the new owners?b. What recommendations relative to the amount and the handling of accounts receivable could you make to the new owners?Assignment 1 : Select a company. It is advised to choose the organization ( if it is listed ) where you are employed for this assignment. If your organization is not listed you may choose any other listed company from your industry or related industry. · Download last 3 years annual report. · Compute the financial ratios for last 3 years and see the trend [ Profitability ratios, Liquidity ratios, Activity Ratios, Financing Ratios, and Market Ratios ] . You need to do this exercise on an excel file. · Provide explanation on the strategic implications of these ratios on your company ’ s financial standing and strategy. You may explain in 2 - 3 lines for each category of ratios. [ Profitability ratios, Liquidity ratios, Activity Ratios, Financing Ratios, and Market Ratios ] . Use the same company as the one mentioned in Assignment 1 . • Part A: Strategic Analysis • Conduct a strategic analysis using PESTLE and Porter ’ s 5 forces tools for understanding the…Starborn Company has just been established as a new company to manufacture furniture. The company expects to earn $1 million after-taxes during its first year. The company president has asked for a projected balance sheet based on ratios similar to the industry average. Assuming all sales are made on credit, calculations utilize a 365-day year, and final numbers are rounded to the nearest thousand, prepare a projected balance sheet for Starborn based on the following industry ratios: Current Ratio: 2:1 Quick Ratio: 1:1 Net Profit Margin: 10% Average Collection Period: 20 days Debt Ratio: 40% Total Asset Turnover Ratio: 2 times Current Liabilities/Stockholder's Equity: 20% Create your balance sheet based on the following format: Cash Total Current Liabilities Accounts Receivable Long-term Debt Inventory Total Debt Total Current Assets Stockholder's Equity Net Fixed Assets Total Liabilities and…
- You have been asked by your CEO to evaluate, analyze and calculate commonly used ratios relating to a company’s profitability, liquidity, solvency and management efficiency. Requirement: Complete the balance sheet and sales data (fill in the blanks), using the following financial data: Debt/net worth 60% Acid test ratio 1.2 Asset turnover 1.5 times Day sales outstanding in accounts receivable 40 days Gross profit margin 30% Inventory turnover 6 times Balance sheet Cash ________ Accounts…You have been asked by your CEO to evaluate, analyse and calculate commonly used ratios relating to a company’s profitability, liquidity, solvency and management efficiency. Requirement: ⦁ Complete the balance sheet and sales data (fill in the blanks), using the following financial data: Debt/net worth 60%Acid test ratio 1.2Asset turnover 1.5 timesDay sales outstanding in accounts receivable 40 daysGross profit margin 30%Inventory turnover 6 times Balance sheet Cash ________ Accounts payable ________Accounts receivable ________ Common stock RM15,000Inventories ________ Retained earnings RM22,000Plant & equipment ________ Total assets ________ Total liabilities ________& capitalSales ________Cost of goods sold ________ ⦁ Explain how do analysts use ratios to analyse a firm’s leverage? Which ratios convey more important information to a credit analyst those revolving around the levels of indebtedness or those measuring the ability to service debt? What is the relationship between…You have been hired as an analyst for MBJ & Co and your team is working on an independent assessment of Anak Bumi Sdn. Bhd (ABSB). ABSB is a company that specializes in the plantation. Your assistant has provided you with the following data for ABSB and their industry. Ratio 2019 2020 2021 2020- Industry Average Long-term debt 0.45 0.40 0.35 0.35 Inventory Turnover 62.65 42.42 32.25 53.25 Depreciation/Total Assets 0.25 0.02 0.02 0.02 Days’ sales in receivables 113 98 94 130 Debt to Equity 0.75 0.85 0.90 0.88 Profit Margin 0.08 0.07 0.06 0.08 Total Asset Turnover 0.54 0.65 0.70 0.40 Quick Ratio 1.03 1.03 1.03 1.03 Current Ratio 1.33 1.21 1.15 1.25 Times Interest Earned 0.90 4.38 4.45 4.65 Equity Multiplier 1.75 1.85 1.90 1.88 Required: You are required to prepare interim audit report of ABSB for the year 2020.