Homework Answers
| Current Ratio = Current Assets / Current Liabilities | ||
| =800000/400000 | ||
| 2 | ||
| Acid Test Ratio = (Current assets-Inventory )/Current Liabilities | ||
| = (800000-160000)/400000 | ||
| 1.6 | ||
| Sundry Debtors | 400,000 | |
| Marketable Securities | 80,000 | |
| Prepaid Expense | 40,000 | |
| Stock | 160,000 | |
| Cash | 120,000 | |
| Total Current Assets | 800,000 | |
| Sundry Creditors | 160,000 | |
| Outstanding Expense | 160,000 | |
| Bills Payable | 80,000 | |
| Total Current Liabilities | 400,000 | |
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Short-Term Solvency Ratios (Liquidity Rations) 1. Calculate current ratio and quick/liquid/acid test ratio from the following:...
Which of the following would be considered liquidity or short-term solvency ratios? quick ratio; cash ratio....
Which of the following would be considered liquidity or short-term solvency ratios? quick ratio; cash ratio. quick ratio; times interest earned ratio (TIE). current ratio; long-term debt ratio. current ratio; inventory turnover ratio;
Question 5: a. Calculate (i) debt-equity ratio and (ii) Liquid ratio iii) Turnover ratios from the...
Question 5:
a. Calculate (i) debt-equity ratio and (ii) Liquid ratio iii)
Turnover ratios from the following balance sheet and additional
information.
Balance Sheet
Liabilities Amount - £ Assets Amount - £
Equity shares of £ 10 each 100,000 Goodwill 60,000
Reserves 20,000 Fixed Assets at cost 140,000
Profit and loss account 30,000 Stock 30,000
Secured loan 80,000 Sundry debtors 30,000
Sundry Creditors 50,000 Advances 10,000
Provision for taxation 20,000 Cash 30,000
300,000 300,000
The sales for the year were...
Calculate (i) debt-equity ratio and (ii) Liquid ratio iii) Turnover ratios from the following balance sheet...
Calculate (i) debt-equity ratio and (ii) Liquid ratio iii) Turnover ratios from the following balance sheet and additional information. Balance Sheet Liabilities Amount - £ Assets Amount - £ Equity shares of £ 10 each 100,000 Goodwill 60,000 Reserves 20,000 Fixed Assets at cost 140,000 Profit and loss account 30,000 Stock 30,000 Secured loan 80,000 Sundry debtors 30,000 Sundry Creditors 50,000 Advances 10,000 Provision for taxation 20,000 Cash 30,000 300,000 300,000 The sales for the year were £ 560,000 and...
Chapter 14 Practice Test Question 18 15 Liquidity Ratios Look at the following current asset...
Chapter 14 Practice Test Question 18 15 Liquidity Ratios Look at the following current asset and liability data for Beaches Resorts (BR) and choose the correct conclusion: 4 Assets Amount Liabilities points Amount (Mil) (Мil) 120 $205 $440 $567 Skipped Cash $510 $350 131 Payables Securities Bank notes Receivables Other Inventory Industry average current ratio 1.27 Industry average quick ratio 0.80 еВоok Print References Multiple Choice BR is less liquid than the industry average according to both the current...
Statement of Financial Position of Xeon Limited is given as follows: Xeon Limited Statement of Financial...
Statement of Financial Position of Xeon Limited is given as follows: Xeon Limited Statement of Financial Position As on June 30, 2017 Capital & Liabilities Amount (in Rupees) Amount Assets (in Rupees) Share Capita Plant & Machinery800,000 200,000 220,000 110,000 10,000 8,000 500,000 Reserves & Surplus 100,000 12% Mortgage Loan | 440,000 160,000 100,000 80,000 10% Debentures Bank Overdraft Creditors Outstanding Expenses Furniture & Fixtures Stock Debtors Advances Prepaid Expenses 20,000 1,400,000 52,000 1,400,000 Cash in Hand Requirement: Calculate the...
Calculate the current ratio, quick ratio, long-term debt/total assets, times interest earned, and fixed cost coverage...
Calculate the current ratio, quick ratio, long-term debt/total
assets, times interest earned, and fixed cost coverage using the
picture below.
X2 X3 X4 $2,500,000 3.200,000 3,500,000 4,000,000 1.900.000 2400.0002.700.000 3200.000 800,000 400,00D 25,000 200,000 10.000 20.000 30.000 60.000 15,000 107,500 COST OF GOODS SOLD GROSS PROFIT SELLING & ADMINISTRATIVE EXPENSE DEPRECIATION LEASES MISCELLANEOUS EXPENSE 600,000 400,000 800,000 800,000 400,000 160,000 190,000 138,700 25,000 175,000 170,000 89,000 EARNINGS BEFORE INTEREST & TAXES INTEREST EARNINGS BEFORE TAXES TAXES (35%) NET INCOME DIVIDENDS...
Compute and Interpret Coverage, Liquidity and Solvency Ratios Selected balance sheet and income statement information from...
Compute and Interpret Coverage, Liquidity and Solvency Ratios Selected balance sheet and income statement information from Amazon for 2016 through 2018 follows. $ millions 2018 2017 2016 Net operating profit after tax (NOPAT) $10,978 $3,222 $2,556 Net income 10,073 3,033 2,371 Operating profit 12,421 4,106 4,186 Interest expense 1,417 848 484 Cash from operating activities 30,723 18,365 17,203 Current assets 75,101 60,197 45,781 Current liabilities 68,391 57,883 43,816 Cash and cash equivalents 31,750 20,522 19,334 Marketable securities 9,500 10,464 6,647...
Refer to Dino's information below and calculate the following ratios: Working capital ratio, quick ratio/acid test,...
Refer to Dino's information below and calculate the following
ratios: Working capital ratio, quick ratio/acid test, earnings per
share, price-earnings ratio, debt-equity ratio, and return on
equity. Clearly provide each formulae, numbers and work associated,
along with the answers.
For each ratio you calculated, provide an analytic statement in
which you comment on how the ratio can affect specific decisions
that need to be made within the organization.
Notes:
Each statement must be at least one full paragraph, explaining
the...
The following are the comparative accounts for MM Enterprise for the financial year 2018 and 2017:...
The following are the comparative accounts for MM Enterprise for the financial year 2018 and 2017: 2018 2017 Accounts (RM) 300,000 (RM) 250,000 Sales Cost of goods sold Expenses Net profit Equipment Cash 60,000 50,000 80,000 80,000 160,000 120,000 420,000 10,000 500,000 8,000 Inventories 30,000 40,000 Debtors 12,000 14,000 Prepaid expenses Creditors 4,000 3,000 10,000 15,000 Accrued expenses 10,000 6.000 Bank loan 150,000 100,000 Total Equities 410,000 400,000 Required: Calculate (use two decimal points) the following ratios for 2018: (a)...
A. Required: 1. Please calculate the following ratios and amounts: a) working capital, current ratio, acid-test...
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 5:
a. Calculate (i) debt-equity ratio and (ii) Liquid ratio iii)
Turnover ratios from the following balance sheet and additional
information.
Balance Sheet
Liabilities Amount - £ Assets Amount - £
Equity shares of £ 10 each 100,000 Goodwill 60,000
Reserves 20,000 Fixed Assets at cost 140,000
Profit and loss account 30,000 Stock 30,000
Secured loan 80,000 Sundry debtors 30,000
Sundry Creditors 50,000 Advances 10,000
Provision for taxation 20,000 Cash 30,000
300,000 300,000
The sales for the year were...
Chapter 14 Practice Test Question 18 15 Liquidity Ratios Look at the following current asset and liability data for Beaches Resorts (BR) and choose the correct conclusion: 4 Assets Amount Liabilities points Amount (Mil) (Мil) 120 $205 $440 $567 Skipped Cash $510 $350 131 Payables Securities Bank notes Receivables Other Inventory Industry average current ratio 1.27 Industry average quick ratio 0.80 еВоok Print References Multiple Choice BR is less liquid than the industry average according to both the current...
Statement of Financial Position of Xeon Limited is given as follows: Xeon Limited Statement of Financial Position As on June 30, 2017 Capital & Liabilities Amount (in Rupees) Amount Assets (in Rupees) Share Capita Plant & Machinery800,000 200,000 220,000 110,000 10,000 8,000 500,000 Reserves & Surplus 100,000 12% Mortgage Loan | 440,000 160,000 100,000 80,000 10% Debentures Bank Overdraft Creditors Outstanding Expenses Furniture & Fixtures Stock Debtors Advances Prepaid Expenses 20,000 1,400,000 52,000 1,400,000 Cash in Hand Requirement: Calculate the...
Calculate the current ratio, quick ratio, long-term debt/total
assets, times interest earned, and fixed cost coverage using the
picture below.
X2 X3 X4 $2,500,000 3.200,000 3,500,000 4,000,000 1.900.000 2400.0002.700.000 3200.000 800,000 400,00D 25,000 200,000 10.000 20.000 30.000 60.000 15,000 107,500 COST OF GOODS SOLD GROSS PROFIT SELLING & ADMINISTRATIVE EXPENSE DEPRECIATION LEASES MISCELLANEOUS EXPENSE 600,000 400,000 800,000 800,000 400,000 160,000 190,000 138,700 25,000 175,000 170,000 89,000 EARNINGS BEFORE INTEREST & TAXES INTEREST EARNINGS BEFORE TAXES TAXES (35%) NET INCOME DIVIDENDS...
Compute and Interpret Coverage, Liquidity and Solvency Ratios Selected balance sheet and income statement information from Amazon for 2016 through 2018 follows. $ millions 2018 2017 2016 Net operating profit after tax (NOPAT) $10,978 $3,222 $2,556 Net income 10,073 3,033 2,371 Operating profit 12,421 4,106 4,186 Interest expense 1,417 848 484 Cash from operating activities 30,723 18,365 17,203 Current assets 75,101 60,197 45,781 Current liabilities 68,391 57,883 43,816 Cash and cash equivalents 31,750 20,522 19,334 Marketable securities 9,500 10,464 6,647...
Refer to Dino's information below and calculate the following
ratios: Working capital ratio, quick ratio/acid test, earnings per
share, price-earnings ratio, debt-equity ratio, and return on
equity. Clearly provide each formulae, numbers and work associated,
along with the answers.
For each ratio you calculated, provide an analytic statement in
which you comment on how the ratio can affect specific decisions
that need to be made within the organization.
Notes:
Each statement must be at least one full paragraph, explaining
the...
The following are the comparative accounts for MM Enterprise for the financial year 2018 and 2017: 2018 2017 Accounts (RM) 300,000 (RM) 250,000 Sales Cost of goods sold Expenses Net profit Equipment Cash 60,000 50,000 80,000 80,000 160,000 120,000 420,000 10,000 500,000 8,000 Inventories 30,000 40,000 Debtors 12,000 14,000 Prepaid expenses Creditors 4,000 3,000 10,000 15,000 Accrued expenses 10,000 6.000 Bank loan 150,000 100,000 Total Equities 410,000 400,000 Required: Calculate (use two decimal points) the following ratios for 2018: (a)...
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...
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