Homework Answers
Answer
The turnover rate of assets has nothing to do with the analysis of current asset because the turnover of assets indicates only the efficiency of assets in generating revenues for the company whereas the current ration indicates the capacity of the company to repay its debt
Composition of current assets is required because the current ratio is calculated based on total current assets
A current ratio with a slightly better than the industry average is considered as acceptable and below the industry average is considered as risky.
Break down long term indicates debt indicates that long term debt due within a year, which means current liabilities as increased which will be needed when analyzing current ratio because the current ratio is current assets/current liabilities
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Which item below must not be analyzed when analyzing the current ratio? composition of current assets...
a) Complete the following tables: Item Value Current assets $35,000 Current liabilities $15,000 Assets $230,000 Liabilities...
a) Complete the following tables: Item Value Current assets $35,000 Current liabilities $15,000 Assets $230,000 Liabilities $130,000 Equity $100,000 Ratios Formula Calculations Is it in red or green zone? Current ratio Debt-to-asset ratio Item Value Gross revenue $38,000 Operating expenses $21,000 Depreciation $2,000 Interest expense $4,000 NFIO $11,000 Nonbusiness income $17,000 Income Taxes $2,000 Principal $13,000 Interest on term loans $4,000 Family living expenses $14,000 Ratios Formula Calculations Is it in red or green zone? Return on assets Operating profit...
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...
Print Item Calculator eBook Quick Ratio Gmeiner Co. had the following current assets and liabilities on...
Print Item Calculator eBook Quick Ratio Gmeiner Co. had the following current assets and liabilities on December 31 of two recent years. Current Year Previous Year Current assets: Cash $500,000 444,000 274,000 $1,218,000 $673,000 317,000 267,000 $1,257,000 Accounts receivable Inventory Total current assets Current liabilities: $83,000 $94,000 Current portion of long-term debt 189,000 165,000 Accounts payable 307,000 302,000 Accrued and other current liabilities $590,000 $550,000 Total current liabilities a. Determine the quick ratio for December 31 of both years. If...
Liquidity Current ratio 2014 = current assets/current liabilities 204,000/89,000 = 2.292 for 2014 and 230,000/90,000 =...
Liquidity Current ratio 2014 = current assets/current liabilities 204,000/89,000 = 2.292 for 2014 and 230,000/90,000 = 2.555 for 2015 Quick Ratio = current assets-inventory/current liabilities 204,000-66,000/89000= 1.550 for 2014 and 230,000-75000/90,000 = 1.722 for 2015 Accounts receivable turnover Credit sales/average debts Average debt 75000+82000/2 = 78500 Total sales = 3,199,900/78500 = 40.76 times (2015) Days sales outstanding = average accounts receivable/sales credit 78500/3199900 x 360 = 8.83 days (2015) Inventory turnover 66,000+75,000/2 = 70,500 Inventory turnover ratio = cost of...
Which of the statements below is FALSE? A) The acid ratio test equals current assets minus...
Which of the statements below is FALSE? A) The acid ratio test equals current assets minus inventories divided by current liabilities. B) Examples of liquidity ratios include the current ratio, the cash coverage ratio, and the quick ratio. C) The current ratio is current assets divided by current liabilities. D) Inventory turnover equals cost of goods sold divided by inventory.
1. current assets are $100,000 and current liabilities are $80,000. what is the current ratio? 2....
1. current assets are $100,000 and current liabilities are $80,000. what is the current ratio? 2. which of the following is considered a favorable change or trend? A. Decrease in inventory turnover B. Decrease in times interest earned C. Increase in debt ratio D. Increase in total assets turnover
The balance sheets for Plasma Screens Corporation and additional information are provided below PLASMA SCREENS CORPORATION Balance Sheets December 31, 2018 and 2017 2018 2017 Assets Current assets:...
The balance sheets for Plasma Screens Corporation and additional information are provided below PLASMA SCREENS CORPORATION Balance Sheets December 31, 2018 and 2017 2018 2017 Assets Current assets: Cash Accounts rece Inventory Investments $128,500 76,000 94,000 3,900 119,000 91,000 79,000 1,900 ivable Long-term assets: Land Equipment Less: Accumulated depreciation 470,000 780,000 (418,000) 470,000 660,000 (258,000) $ 1,134,400$ 1,162,900 Total assets Liabilities and Stockholders' Equity Current liabilities Accounts paya Interest payable Income tax payable $98,000 $84,000 11,900 4,900 ble 6,000 8,000...
rch the menus (A-T) Average Daily Operating Costs Total Assets- Total Equity Total Assets Total Debt...
rch the menus (A-T) Average Daily Operating Costs Total Assets- Total Equity Total Assets Total Debt Ratio Total Debt 4, Debt- Equity Ratio Total Equity 4Equity Multiplier Total Assets Total Equity 3,4: 241 26 Long-term Debt Ratio Long-Term Debt3.011 Long-Term Debt+ Total Equity 9.09 29 Times Interest Earned Ratio 30 EBIT Interest 398.5 3,821, Cash Coverage Ratio EBITt Depreciationl (39857 Interest (382110 Cost of Goods Sold NA Inv 976,600 Inventory Turnover Inventory Period Ending 9/30/2018 Current Assets Cash And Cash...
A firm has a long-term debt-equity ratio of 0.59. Shareholders' equity is $1.8 million. Current assets...
A firm has a long-term debt-equity ratio of 0.59. Shareholders' equity is $1.8 million. Current assets are $551,000, and total assets are $3.152 million. If the current ratio is 1.9, what is the ratio of debt to total long-term capital? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Debt to total long-term capital
E12-7 Analyzing the Impact of Selected Transactions on the Current Ratio L012-7 Current assets for JC...
E12-7 Analyzing the Impact of Selected Transactions on the Current Ratio L012-7 Current assets for JC Inc. totalled $35,550, and the current ratio was 1.58. Assume that the following transactions were completed: (1) Purchased merchandise for $5,000 on short-term credit. (2) Purchased a delivery truck for $31,000—paid $4,400 cash and signed a two-year interest-bearing note for the balance. Required: Compute the current ratio after each transaction. (Round the final answers to 2 decimal places.) Answer is complete but not entirely...
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...
Print Item Calculator eBook Quick Ratio Gmeiner Co. had the following current assets and liabilities on December 31 of two recent years. Current Year Previous Year Current assets: Cash $500,000 444,000 274,000 $1,218,000 $673,000 317,000 267,000 $1,257,000 Accounts receivable Inventory Total current assets Current liabilities: $83,000 $94,000 Current portion of long-term debt 189,000 165,000 Accounts payable 307,000 302,000 Accrued and other current liabilities $590,000 $550,000 Total current liabilities a. Determine the quick ratio for December 31 of both years. If...
The balance sheets for Plasma Screens Corporation and additional information are provided below PLASMA SCREENS CORPORATION Balance Sheets December 31, 2018 and 2017 2018 2017 Assets Current assets: Cash Accounts rece Inventory Investments $128,500 76,000 94,000 3,900 119,000 91,000 79,000 1,900 ivable Long-term assets: Land Equipment Less: Accumulated depreciation 470,000 780,000 (418,000) 470,000 660,000 (258,000) $ 1,134,400$ 1,162,900 Total assets Liabilities and Stockholders' Equity Current liabilities Accounts paya Interest payable Income tax payable $98,000 $84,000 11,900 4,900 ble 6,000 8,000...
rch the menus (A-T) Average Daily Operating Costs Total Assets- Total Equity Total Assets Total Debt Ratio Total Debt 4, Debt- Equity Ratio Total Equity 4Equity Multiplier Total Assets Total Equity 3,4: 241 26 Long-term Debt Ratio Long-Term Debt3.011 Long-Term Debt+ Total Equity 9.09 29 Times Interest Earned Ratio 30 EBIT Interest 398.5 3,821, Cash Coverage Ratio EBITt Depreciationl (39857 Interest (382110 Cost of Goods Sold NA Inv 976,600 Inventory Turnover Inventory Period Ending 9/30/2018 Current Assets Cash And Cash...
A firm has a long-term debt-equity ratio of 0.59. Shareholders' equity is $1.8 million. Current assets are $551,000, and total assets are $3.152 million. If the current ratio is 1.9, what is the ratio of debt to total long-term capital? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Debt to total long-term capital
E12-7 Analyzing the Impact of Selected Transactions on the Current Ratio L012-7 Current assets for JC Inc. totalled $35,550, and the current ratio was 1.58. Assume that the following transactions were completed: (1) Purchased merchandise for $5,000 on short-term credit. (2) Purchased a delivery truck for $31,000—paid $4,400 cash and signed a two-year interest-bearing note for the balance. Required: Compute the current ratio after each transaction. (Round the final answers to 2 decimal places.) Answer is complete but not entirely...
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