1. True- RONA is a profitability ratio.
2. True..RONA formula= profit margin divided by total assets
3. False..You need to add both to get the result= 18+30=48 days
4. false.. It is other way round..higher account receivable turnover ratio indicates faster collections.
Please raise additional questions for remaining part as per Chegg policy.
TRUE/FALSE 1) The return on total assets ratio is not a profitability measure. 1) 2) The...
Consider the following financial data for J. White Industries: Total assets turnover: 1.5 Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 30% Total liabilities-to-assets ratio: 35% Quick ratio: 0.85 Days sales outstanding (based on 365-day year): 36 days Inventory turnover ratio: 6.0 The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet Complete the balance sheet and sales information...
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...
Total assets turnover: 1.2x Days sales outstanding: 30.5 daysa Inventory turnover ratio: 4x Fixed assets turnover: 3x Current ratio: 2x Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 15% Calculation is based on a 365-day year. Do not round intermediate calculations. Round your answer to the nearest cent. Balance Sheet Cash Current liabilities Accounts receivable Long-term debt 68,750 Inventories Common stock Fixed assets Retained earnings 82,500 Total assets $275,000 Total liabilities and equity Sales Cost of...
What is the Average Total Assets, Average Total Inventory, Preferred Dividends, and Average Common Stockholders Equity ?? please show how with steps Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $49,900; total assets, $229,400; common stock, $89,000; and retained earnings, $33,215.) Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover, (5) days' sales...
1. Given the 2019 ratios of Verizon wireless what do EACH of these ratios indicate about the company specifically? (not just as a whole) 2. Lastly, at the end, in one paragraph what do these calculations (all together) mean for the companies financial health? Answers must be broken down into everyday language and not in "financial talk" Profit ratios: gross profit margin (gross profit / sales)*100 gross profit 77142000 sales 131868000 gross profit margin 58.50% operating profit margin (operating profit...
Current Yr 1 Yr Ago 2 Yrs Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 31,953 89,200 110,500 10,290 310.679 $552,622 $ 37,350 $ 39, 303 62,900 51.900 84,000 55,000 9.804 4.367 282,344 254,530 $ 476,398 $ 405,100 $134,851 $ 78,901 $ 52,404 101,815...
Barco Куan Сompany Barco Куan Сompany Сompany Сопрany Data from the current year-end balance sheets Assets Data from the current year's income statement Sales $790,000 $901,200 591 100 19,000 35,000 37,400 84,340 5,800 320,000 305,400 Cash Cost of goods sold Interest expense Income tax expense Net income 640,500 Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 54,400 134,500 7,600 8,500 15 185 175,215 $.48 16,000 24,879 219,821 Basic earnings per share 5.09 $466,540 $536,900 Total assets Cash dividends...
Profitability ratios: l. Profit margin % m. Return on assets % n. Return on equity % SMOLIRA GOLF CORP. 2018 Income Statement Sales $ 336,329 Cost of goods sold 231,000 Depreciation 21,600 Earnings before interest and taxes $ 83,729 Interest paid 14,400 Taxable income $ 69,329 Taxes (21%) 14,559 Net income $ 54,770 Dividends $ 21,000 Retained earnings 33,770 Some recent financial statements for Smolira Golf Corp. follow. SMOLIRA GOLF CORP. 2017 and 2018 Balance Sheets Assets Liabilities and...
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...
Ratios for Simmons IndustryBetter (B) or worse(W) Ratio Δverage Profit margin Return on assets Return on equity Receivables turnover Avg. collection period Inventory turnover Fixed asset turnover Total asset turnover Current ratio Quick ratio Debt to total assets Times interest earned Fixed charge coverage 17.5% 20.8% 35% 4.4x 68.0 days - 3.5x 2.4x -76x 1.28 .85 .45 12.0x 3.6x Given the balance sheet and income state for Simmons Maintenance ratios that are also shown for the industry average. For each...