25. An acceleration in the collection of receivables will send to cause the accounts receivable turnover to
25. An acceleration in the collection of receivables will send to cause the accounts receivable turnover to
A. Increase B. Decrease C. Remain the same D. Either increase or decrease
26. Which of the following ratios provides a measure that shows the margin of safety of bondholders and also gives an indication of the potential ability of a business to borrow additional funds on a long-term basis?
A Asset turnover ratio. B. Number of days' sales in receivable. C. Return on stockholders' equity D. Ratio of fixed assets to long-term liabilities.
27. Which of the following is a profitability analysis?
A Rate earned on total assets B Rate earned on stockholders' equity C. Rate earned on common stockholders' equity. D. All of the above.
28. When interpreting financial ratios, it is useful to compare a company's ratios to the same ratios from a prior period or to the ratio of another company in the same industry.
A True B. False
29. Corporate annual reports typically contain
A Management discussion and analysis B Report on internal control C Report on fairness of the financial statements D. All of the above
30. The purpose of an audit is to
A. Determine whether or not a company is a good investment. B. Determine whether or not a company is a good credit risk. C. Render an opinion on the fairness of the financial statements. D. None of the above.
Homework Answers
Add Answer to:
25. An acceleration in the collection of receivables will send to cause the accounts receivable turnover to
13. If a firm's accounts receivable turnover equals 8 times, its average collection period is approximately...
13. If a firm's accounts receivable turnover equals 8 times, its average collection period is approximately days ratio must be 55% 14. A firm's debt ratio is 45%. This means that the firm's a. Current b. Times interest earned c. Equity d. Asset 15. Which of the following is a normal characteristic in a bond contract a. The interest rate is fixed b. Interest is paid semi-annually c. Principal is paid at the end of the bond term d. The...
The current year financial statements for Blue Water Company and Prime Fish Company are presented below. Blue Water Prime Fish Balance sheet: Cash Accounts receivable (net) Inventory Property &e...
The current year financial statements for Blue Water Company and Prime Fish Company are presented below. Blue Water Prime Fish Balance sheet: Cash Accounts receivable (net) Inventory Property &equipment (net) Other assets Total assets Current liabilities Long-term debt (interest rate: 15%) Capital stock ($10 par value) Additional paid-in capital Retained earnings Total liabilities and stockholders' equity Income statement: Sales revenue (1/2 on credit) Cost of goods sold Operating expenses Net income Other data: Per share stock price at end of...
Ratio (1) Current ratio (2) Accounts receivable turnover (3) Average collection period (4) Inventory turnover (5)...
Ratio (1) Current ratio (2) Accounts receivable turnover (3) Average collection period (4) Inventory turnover (5) Days in inventory (6) Profit margin (7) Asset turnover (8) Return on assets (9) Return on common stockholders' equity (10) Debt to assets ratio (11) Times interest earned (12) Free cash flow Target 1.63 :1 8.6 times 42.0 days 6.6 times 55.3 days 3.8 % 1.5 times 5.6 % 17.1 % 66 % 6.5 times $3,656 Wal-Mart 0.87 :1 101.4 times 3.6 days 9.0...
The Griggs Corporation has credit sales of $1,075,900 Total assets turnover Cash to total assets Accounts...
The Griggs Corporation has credit sales of $1,075,900 Total assets turnover Cash to total assets Accounts receivable turnover Inventory turnover Current ratio Debt to total assets 2.90 times 1.30 % 10 times 14 times 1.88 times 45 % Using the above ratios, complete the balance sheet. (Round your answers to the nearest whole dollar.) GRIGGS CORPORATION Balance Sheet Assets Liabilities and Stockholders' Equity Cash Accounts receivable Inventory Current debt Long-term debt Total debt Total current assets Fixed assets Equity Total...
current ratio 2.292 and 2.555 (2015) quick ratio 1.55 and 1.722 (2015); accounts receivable turnover 40.76;...
current ratio 2.292 and 2.555 (2015) quick ratio 1.55 and 1.722
(2015); accounts receivable turnover 40.76; days sales outstanding
8.83; inventory turnover ratio 11.495 times; and average days to
sell inventory; 31
debt to assets ratio 0.56 debt to equity = 1.30 interest
coverage ratio = 141.66, plant assets to long term disabilities =
0.36
net margin ratio 0.30; asset turnover ratio = 12.9; return on
investment = 3.88; return on equity 8.92%
We were unable to transcribe this image12/31/2014...
Which financial statement ratio is an example of horizontal analysis? a. accounts receivable turnover b. return...
Which financial statement ratio is an example of horizontal analysis? a. accounts receivable turnover b. return on assets . c gross profit percentage Financial Statements that express only percentages are known as_____________________. a. Profitability Statements b. Uncommon Size Statements c. Common Size Statements
ORIOLE COMPANY Balance Sheets December 31 2017 2016 Current assets Cash and cash equivalents Accounts receivable...
ORIOLE COMPANY Balance Sheets December 31 2017 2016 Current assets Cash and cash equivalents Accounts receivable (net) $330 660 600 $360 590 530 Inventory Prepaid expenses 120 160 Total current assets 1,710 1,640 Investments 200 200 Property, plant, and equipment (net) Intangibles and other assets Total assets 420 380 530 510 $2,860 $2,730 $1,090 $980 550 520 Current liabilities Long-term liabilities Stockholders' equity-common Total liabilities and stockholders' equity 1,220 1,230 $2,860 $2,730 ORIOLE COMPANY Income Statements For the Year Ended...
The Griggs Corporation has credit sales of $1,075,900 Total assets turnover Cash to total assets Accounts...
The Griggs Corporation has credit sales of $1,075,900 Total assets turnover Cash to total assets Accounts receivable turnower 2.90 times 1.30% Inventory turnover Current ratio Debt to total assets 10 times 4 times 1.83 times 45% Using the above ratios, complete the balance sheet. (Round your answers to the nearest whole number.) GRIGGS CORPORATION Balance Sheet Assets Liabilities and Stockholders' Equity Cash Accounts receivable Inventory Current debt Long-term debt Total debt Total current assets Fixed assets Equity Total assets Total...
The condensed financial statements of Murawski Company for the years 2019 and 2020 are presented follows....
The condensed financial statements of Murawski Company for the years 2019 and 2020 are presented follows. (Amounts in thousands MURAWSKI COMPANY Balance Sheets December 31 2020 2019 $ 352 $ 354 360 1.268 Current assets Cash and cash equivalents Accounts receivable (net) Inventory Prepaid expenses Total current assets Investments Property, plant, and equipment Intangibles and other assets Total assets Current liabilities Long-term liabilities Stockholders' equity-common Total liabilities and stockholders' equity $2.203 $ 804 $ 912 360 1.070 1.041 $2.205 $2364...
The condensed financial statements of Murawski Company for the years 2019 and 2020 are presented follows.
The condensed financial statements of Murawski Company for the years 2019 and 2020 are presented follows. (Amounts in thousands.) Compute the following ratios for 2020 and 2019. (Round current ratio and inventory turnover ratio to 2 decimal places, e.g. 1.62 decimal place, e.g. 1.6 or 1.6%.) (a) Current ratio. (b) Inventory turnover. (Inventory on 12/31/18 was $341.) (c) Profit margin ratio. (d) Return on assets. (Assets on 12/31/18 were $1,872.) (e) Return on common stockholders' equity. (Stockholders' equity on 12/31/18 was $898.) (f) Debt to assets ratio. (g)...
13. If a firm's accounts receivable turnover equals 8 times, its average collection period is approximately days ratio must be 55% 14. A firm's debt ratio is 45%. This means that the firm's a. Current b. Times interest earned c. Equity d. Asset 15. Which of the following is a normal characteristic in a bond contract a. The interest rate is fixed b. Interest is paid semi-annually c. Principal is paid at the end of the bond term d. The...
The current year financial statements for Blue Water Company and Prime Fish Company are presented below. Blue Water Prime Fish Balance sheet: Cash Accounts receivable (net) Inventory Property &equipment (net) Other assets Total assets Current liabilities Long-term debt (interest rate: 15%) Capital stock ($10 par value) Additional paid-in capital Retained earnings Total liabilities and stockholders' equity Income statement: Sales revenue (1/2 on credit) Cost of goods sold Operating expenses Net income Other data: Per share stock price at end of...
Ratio (1) Current ratio (2) Accounts receivable turnover (3) Average collection period (4) Inventory turnover (5) Days in inventory (6) Profit margin (7) Asset turnover (8) Return on assets (9) Return on common stockholders' equity (10) Debt to assets ratio (11) Times interest earned (12) Free cash flow Target 1.63 :1 8.6 times 42.0 days 6.6 times 55.3 days 3.8 % 1.5 times 5.6 % 17.1 % 66 % 6.5 times $3,656 Wal-Mart 0.87 :1 101.4 times 3.6 days 9.0...
The Griggs Corporation has credit sales of $1,075,900 Total assets turnover Cash to total assets Accounts receivable turnover Inventory turnover Current ratio Debt to total assets 2.90 times 1.30 % 10 times 14 times 1.88 times 45 % Using the above ratios, complete the balance sheet. (Round your answers to the nearest whole dollar.) GRIGGS CORPORATION Balance Sheet Assets Liabilities and Stockholders' Equity Cash Accounts receivable Inventory Current debt Long-term debt Total debt Total current assets Fixed assets Equity Total...
current ratio 2.292 and 2.555 (2015) quick ratio 1.55 and 1.722
(2015); accounts receivable turnover 40.76; days sales outstanding
8.83; inventory turnover ratio 11.495 times; and average days to
sell inventory; 31
debt to assets ratio 0.56 debt to equity = 1.30 interest
coverage ratio = 141.66, plant assets to long term disabilities =
0.36
net margin ratio 0.30; asset turnover ratio = 12.9; return on
investment = 3.88; return on equity 8.92%
We were unable to transcribe this image12/31/2014...
ORIOLE COMPANY Balance Sheets December 31 2017 2016 Current assets Cash and cash equivalents Accounts receivable (net) $330 660 600 $360 590 530 Inventory Prepaid expenses 120 160 Total current assets 1,710 1,640 Investments 200 200 Property, plant, and equipment (net) Intangibles and other assets Total assets 420 380 530 510 $2,860 $2,730 $1,090 $980 550 520 Current liabilities Long-term liabilities Stockholders' equity-common Total liabilities and stockholders' equity 1,220 1,230 $2,860 $2,730 ORIOLE COMPANY Income Statements For the Year Ended...
The Griggs Corporation has credit sales of $1,075,900 Total assets turnover Cash to total assets Accounts receivable turnower 2.90 times 1.30% Inventory turnover Current ratio Debt to total assets 10 times 4 times 1.83 times 45% Using the above ratios, complete the balance sheet. (Round your answers to the nearest whole number.) GRIGGS CORPORATION Balance Sheet Assets Liabilities and Stockholders' Equity Cash Accounts receivable Inventory Current debt Long-term debt Total debt Total current assets Fixed assets Equity Total assets Total...
The condensed financial statements of Murawski Company for the years 2019 and 2020 are presented follows. (Amounts in thousands MURAWSKI COMPANY Balance Sheets December 31 2020 2019 $ 352 $ 354 360 1.268 Current assets Cash and cash equivalents Accounts receivable (net) Inventory Prepaid expenses Total current assets Investments Property, plant, and equipment Intangibles and other assets Total assets Current liabilities Long-term liabilities Stockholders' equity-common Total liabilities and stockholders' equity $2.203 $ 804 $ 912 360 1.070 1.041 $2.205 $2364...
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