true or fasle: there is a lot of cross-sectional variation in debt-equity ratios, but they do not vary systematically across industries.
true or fasle: there is a lot of cross-sectional variation in debt-equity ratios, but they do not vary systematically across industries.
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true or fasle: there is a lot of cross-sectional variation in debt-equity ratios, but they do not vary systematically across industries.
1. How do you think financial ratios differ across different industries? Compare two industries of your...
1. How do you think financial ratios differ across different industries? Compare two industries of your choice and select a few ratios and explain whether you think the ratios would be higher or lower for each of those industries and explain why. 2. What are some uses and limitations of financial ratios?
P2-41. Comparing Operating Characteristics Across Industries Following are selected income statement and balance sheet data for...
P2-41. Comparing Operating Characteristics Across Industries Following are selected income statement and balance sheet data for companies in different industries. Cost of Goods Sold Gross Profit Net Income $ millions Sales Assets Liabilities Target Corp............. Nike Inc. .............. Harley-Davidson ...... Cisco Systems ........... $73,785 32,376 5,995 49,247 $51,997 17,405 3,620 18,287 $21,788 14,971 2,375 30,960 $3,363 3,760 752 10,739 $ 40,262 21,396 9,991 121,652 $27,305 9,138 8,151 58,067 Stockholders' Equity $12,957 12,258 1,840 63,585 Required a. Compute the following ratios...
do questions 5 to 10, they are True/False questions Consider the balance sheet of Wilkes Industries...
do questions 5 to 10, they are True/False
questions
Consider the balance sheet of Wilkes Industries as shown below. Because Wilkes has $800,000 of retained carnings, the company would be able to pay cash to buy an asset with a cost of $200.000 Cash Inventory Accounts receivable Total Current Assets Net fixed assets $ 50.000 Accounts payable 200.000 Accruals 250.000 Total Current Liabilities S500.000 Debt $ 900.000 Common stock Retained carnings 51.400.000 Total Liabilities & Equity $ 100.000 100.000 $200.000...
2. a) How do the ratios that you calculated for this year compare to those that...
2. a) How do the ratios that you calculated for this
year compare to those that Ivey calculated for the company last
year?
b) What factors from the case are most likely to account
for those changes?
Ratio
Current Year
Last Year
Percent Variation
Liquidity Ratios
Current ratio
2.01
1.86
8.1%
Quick ratio
1.07
Leverage Ratios
Debt ratio
0.64
Debt-to-Net-Worth ratio
1.71
Times-Interest-Earned ratio
2.49
Operating Ratios
Average Inventory Turnover Ratio
4.75
Average Collection Period Ratio
34.60
Average Payable Period...
P2-41. Comparing Operating Characteristics Across Industries Following are selected income statement and balance sheet data for companies in different industries. Cost of Goods Sold Gross Profit Net Income $ millions Sales Assets Liabilities Target Corp............. Nike Inc. .............. Harley-Davidson ...... Cisco Systems ........... $73,785 32,376 5,995 49,247 $51,997 17,405 3,620 18,287 $21,788 14,971 2,375 30,960 $3,363 3,760 752 10,739 $ 40,262 21,396 9,991 121,652 $27,305 9,138 8,151 58,067 Stockholders' Equity $12,957 12,258 1,840 63,585 Required a. Compute the following ratios...
do questions 5 to 10, they are True/False
questions
Consider the balance sheet of Wilkes Industries as shown below. Because Wilkes has $800,000 of retained carnings, the company would be able to pay cash to buy an asset with a cost of $200.000 Cash Inventory Accounts receivable Total Current Assets Net fixed assets $ 50.000 Accounts payable 200.000 Accruals 250.000 Total Current Liabilities S500.000 Debt $ 900.000 Common stock Retained carnings 51.400.000 Total Liabilities & Equity $ 100.000 100.000 $200.000...
2. a) How do the ratios that you calculated for this
year compare to those that Ivey calculated for the company last
year?
b) What factors from the case are most likely to account
for those changes?
Ratio
Current Year
Last Year
Percent Variation
Liquidity Ratios
Current ratio
2.01
1.86
8.1%
Quick ratio
1.07
Leverage Ratios
Debt ratio
0.64
Debt-to-Net-Worth ratio
1.71
Times-Interest-Earned ratio
2.49
Operating Ratios
Average Inventory Turnover Ratio
4.75
Average Collection Period Ratio
34.60
Average Payable Period...
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