1.) Current ratio = current assets/current liabilities
Toulouse Co. = 906,000/291,000 = 3.11 : 1
Lautrec Co. = 1,188,000/361,000 = 3.29 : 1
2.) Acid test ratio = (current assets - inventory)/current liabilities
Toulouse Co. = (906,000 - 564,000)/291,000 = 1.18 : 1
Lautrec Co. = (1,188,000 - 541,000)/361,000 = 1.79 : 1
3.) Account receivable turnover = net credit sales/average receivable
Note:- Sales are all on Account
:- Beginning Account receivable is not given, so ending is used
Toulouse Co. = 918,000/226,000 = 4.06 times
Lautrec Co. = 1,556,000/315,000 = 4.94 times
4.) Inventory turnover = cost of goods sold/average inventory
Note:- Cost of goods sold is 70% and 60% of sales for Toulouse and Lautrec co. respectively
:- beginning inventory is not given, so ending is used only
Toulouse Co. = (918,000 x 70%)/564,000 = 1.14 times
Lautrec Co. = (1,556,000 x 60%/541,000 = 1.73 times
5.) Cash to current liabilities = Cash/current liabilities
Toulouse Co. = 116,000/291,000 = 0.40 : 1
Lautrec Co. = 332,000/361,000 = 0.92 : 1
Exercise 24-04 As loan analyst for Bramble Bank, you have been presented the following information. Toulouse...
Exercise 24-4 As loan analyst for Utrillo Bank, you have been presented the following information. Toulouse Co. Lautrec Co. Assets Cash $111,800 $311,100 Receivables 210,100 306,000 Inventories 575,300 513,100 Total current assets 897,200 1,130,200 Other assets 502,100 610,200 Total assets $1,399,300 $1,740,400 Liabilities and Stockholders’ Equity Current liabilities $303,300 $349,800 Long-term liabilities 394,800 502,100 Capital stock and retained earnings 701,200 888,500 Total liabilities and stockholders’ equity $1,399,300 $1,740,400 Annual sales $936,200 $1,502,900 Rate of gross profit on sales 25 %...
Exercise 24-4 As loan analyst for Marin Bank, you have been presented the following information. Toulouse Co. Lautrec Co. Assets Cash $125,000 $320,000 Receivables 218,000 297,000 Inventories 580,000 500,000 Total current assets 923,000 1,117,000 Other assets 494,000 614,000 Total assets $1,417,000 $1,731,000 Liabilities and Stockholders’ Equity Current liabilities $302,000 $338,000 Long-term liabilities 409,000 494,000 Capital stock and retained earnings 706,000 899,000 Total liabilities and stockholders’ equity $1,417,000 $1,731,000 Annual sales $972,000 $1,488,000 Rate of gross profit on sales 30 %...
As loan analyst for Metlock Bank, you have been presented the
following information.
Toulouse Co.
Lautrec Co.
Assets
Cash
$119,000
$306,000
Receivables
217,000
289,000
Inventories
576,000
495,000
Total current assets
912,000
1,090,000
Other assets
489,000
616,000
Total assets
$1,401,000
$1,706,000
Liabilities and Stockholders’ Equity
Current liabilities
$311,000
$332,000
Long-term liabilities
406,000
489,000
Capital stock and retained earnings
684,000
885,000
Total liabilities and stockholders’ equity
$1,401,000
$1,706,000
Annual sales
$883,000
$1,529,000
Rate of gross profit on sales
30
%
40
%...
As loan analyst for Oriole Bank, you have been presented the following information. Toulouse Co. Lautrec Co. Assets SUS Cash $114,000 $330,000 Receivables 229,000 301.000 Inventories 597,000 531,000 Total current assets 940,000 1,162,000 Other assets 479,000 587,000 Total assets $1,419,000 $1,749,000 Liabilities and Stockholders' Equity. Current liabilities Long-term liabilities $314,000 402,000 703.000 $345,000 479,000 925,000 Capital stock and retained earnings Total liabilities and stockholders' equity $1,419,000 $1,749,000 Annual sales $936,000 $1,564,000 Rate of gross profit on sales 30% 40% Each...
Exercise 24-4 As loan analyst for Utrillo Bank, you have been presented the following information. Toulouse Co. Lautrec Co. Cash Receivables Inventories $120,800 224,800 578,100 $326,900 307,100 512,200 1,146,200 Total current assets Other assets 923,700 .200 617,600 502,700 $1,426,400 Total assets $1,763,800 Current liabilities Long-term liabilities Capital stock and retained earnings $290,300 397,700 738,400 $1,426,400 $931,700 $350,000 502,700 911,100 $1,763,800 $1,504,600 Total liabilities and stockholders equity Annual sales Rate of gross profit on sales 25 % 40% Each of these...
As loan analyst for Shamrock Bank, you have been presented the following information. Toulouse Co. Lautrec Co. Assets Cash $126,000 $317,000 Receivables 213,000 316,000 Inventories 585,000 511,000 Total current assets 924,000 1,144,000 Other assets 522,000 631,000 Total assets $1,446,000 $1,775,000 Liabilities and Stockholders’ Equity Current liabilities $292,000 $357,000 Long-term liabilities 418,000 522,000 Capital stock and retained earnings 736,000 896,000 Total liabilities and stockholders’ equity $1,446,000 $1,775,000 Annual sales $942,000 $1,549,000 Rate of gross profit on sales 30 % 40 %...
You have just been hired as a loan officer at San Diego State Bank. Your supervisor has given you a file containing a request from Mobile Company, a manufacturer of auto components, for a $1,000,000 five-year loan. Financial statement data on the company for the last two years are given below: Mobile Company Comparative Balance Sheet This Year Last Year $ 308,100 $ Assets Current assets Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses . 918,000 1,340,500 91,300 392,150...
P10-7A You have been presented with the following selected information from the financial statements of one of Canada's largest dairy producers, Saputo Inc. (in millions): 2015 2014 2013 Statement of financial position Accounts receivable S 785 S 807 $ 625 Inventory Total current assets 1,006 1.962 933 1,896 770 1,513 Total assets 6.800 6,357 5,194 Current liabilities 1,179 1,725 1,227 Total liabilities 3,172 3,518 2,888 Income statement Net sales $10,658 $9,223 $7,298 Cost of goods sold 7,688 6,518 5,136 Interest...
P10-7A You have been presented with the following selected information from the financial statements of one of Canada's largest dairy producers, Saputo Inc. (in millions): 2015 2014 2013 Statement of financial position Accounts receivable $ 785 S 807 $ 625 Inventory 1,006 933 770 Total current assets 1,962 1,896 1,513 Total assets 6,800 6,357 5,194 Current liabilities 1,179 1,725 1,227 Total liabilities 3,172 3,518 2,888 Income statement Net sales $10,658 $9,223 $7,298 Cost of goods sold 7,688 6,518 5,136 Interest...
Required information [The following information applies to the questions displayed below.] You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has asked you to perform a comprehensive analysis of the company's financial statements, including comparing Lydex's performance to its major competitors. The company's financial statements for the last two years are as follows: Lydex Company Comparative Balance Sheet This Year Last Year $ 1,040,000 0 3,020,000 3,680,000 270,000 8,010,000 9,680,000...