A.
Required:
1. Please calculate the following ratios and amounts: a) working
capital, b)
current ratio, c) acid-test ratio, d) cash to current liabilities
ratio, e) days’ sales
in receivables (based on ending accounts receivables), f) days’
sales in
inventory (based on cost of goods and ending inventory), g)
operating cycle,
h) total debt to equity ratio and i) times interest earned. For
your calculations,
assume that a year amounts for 360 days
(a)-Working capital
Working capital = Total current assets – Total current liabilities
= $6,000,000 / $3,000,000
= $3,000,000
(b)-Current ratio
Current ratio = Total current assets / Total current liabilities
= $6,000,000 / $3,000,000
= 2.00 Times
(c)-Acid-test ratio
Acid-test ratio = [Total current assets – Inventory – Prepaid expenses] / Total current liabilities
= [$6,000,000 - $2,100,000 - $750,000] / $3,000,000
= $3,150,000 / $3,000,000
= 1.05 Times
(d)-Cash to current liabilities ratio
Cash to current liabilities ratio = Cash / Total current liabilities
= $700,000 / $3,000,000
= 0.23 Times
A. Required: 1. Please calculate the following ratios and amounts: a) working capital, b) current ratio,...
A. Required: 1. Please calculate the following ratios and amounts: a) working capital, current ratio, acid-test ratio, cash to current liabilities ratio, days’ sales in receivables (based on ending accounts receivables), days’ sales in inventory (based on cost of goods and ending inventory), operating cycle, total debt to equity ratio and times interest earned. For your calculations, assume that a year amounts for 360 days The balance sheet and the income statement of “Omega” Company containing data in € is...
A. Required: 1. Please calculate the following ratios and amounts: a) working capital, current ratio, acid-test ratio, cash to current liabilities ratio, days’ sales in receivables (based on ending accounts receivables), days’ sales in inventory (based on cost of goods and ending inventory), operating cycle, total debt to equity ratio and times interest earned. For your calculations, assume that a year amounts for 360 days The balance sheet and the income statement of “Omega” Company containing data in € is...
QUESTION 3 From following financial statements, calculate following ratios and analyse the current year and previous year performance a) Current ratio. b) Days sales outstanding (DSO). (Sales 2017 RM500m & Sales 2018 RM600m) c) Inventory turnover ratio d) Total debt to assets e) Return on assets (ROA) (Net income 2017 RM42m &Net income 2018 RM58m) Moon Inc. Balance Sheet (RM millions) as at December 31, 2015 and 2016 2015 21 51 2016 20 84 Cash Accounts receivable Inventory Prepaid expenses...
Indicate what is meant by the following ratio calculations. 1. Liquidity Ratios Current Ratio = Current Assets Current Liabilities = 515800 626900 = 0.82 : 1 Quick Ratio = Quick Assets Current Liabilities = 42700 + 205800 626900 = 0.40 Cash Ratio = Cash & Cash Equivalents Current Liabilities = 42700 626900 = 0.0681 : 1 2. Turnover / Activity Ratios Inventory Turnover = COGS Average Inventories...
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Requirements 1. Compute the following ratios for 2018 and 2017: a. Current ratio b. Cash ratio c. Times-interest-earned ratio d. Inventory turnover e. Gross profit percentage f. Debt to equity ratio g. Rate of return on common stockholders' equity h. Earnings per share of common stock I. Pricelearnings ratio 2. Decide (a) whether Tanfield's ability to pay debts and to sell inventory improved or deteriorated during 2018 and (b) whether the investment attractiveness of its common stock appears to have...
Part 1: Ratio Analysis calculate the following ratios Part 2: Perform a vertical analysis of statement of financial position & Income statement Part 3: Perform a Horizontal Analysis of statement of Financial Position for 2015 and 2014 & Income statement for 2015 Instructions: 1. On pages three and four, you will find condensed statement of financial position and income statement data for Waterloo Corporation. 2. Use the same information to answer all the three parts. 3. Part 1: a. In...
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