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
Homework Answers
|
Current Ratio = Current assets /Current liabilities = 100,000/80,000 = 0.8 |
|
|
Option D Higher asset turnover means assets are generating more sales revenue than before. Hence option D |
Add Answer to:
1. current assets are $100,000 and current liabilities are
$80,000. what is the current ratio?
2....
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...
Using the following to determine the debt-to-equity ratio. Common Stock $300,000 Current Assets $100,000 Current Liabilities...
Using the following to determine the debt-to-equity ratio. Common Stock $300,000 Current Assets $100,000 Current Liabilities $50,000 Intangible Assets $120,000 Investments $200,000 Long-term Liabilities $250,000 Other Assets $80,000 Property, Plant & Equipment $300,000 Retained Earnings $200,000 A. 0.62 B. 0.77 C. None of these D. 0.60
assets Total current liabilities Debt Ratio C. Debt ratio -the proportion of a company's assets financed...
assets Total current liabilities Debt Ratio C. Debt ratio -the proportion of a company's assets financed with debt. Debt ratio = Total Liabilities Total Assets D How transactions affect the ratios Given the following balances: Current Assets $150,000 Current Liabilities 75,000 Total Assets Total Liabilities 300,000 120,000 1. What is net working capital? 2. What are the current and debt ratios? 3. How would the following transactions affect the current ratio & the debt ratio (Improve, Deteriorate, No Change)? a....
Determine the effect on the current ratio, quick ratio, net working capital (current assets minus current...
Determine the effect on the current ratio, quick ratio, net working capital (current assets minus current liabilities), the debt ratio (total liabilities to total assets) of each of the following transactions. Consider each transaction seperately and assume that prior to each transaction the current ratio is 1.8x, the quick ratio is 1.5x, and the debt ratio is 75%. Think about what is included in each portion of the ratio. Use "I" for increase, "D" for decrease, and "N" for no...
Problem # 1 (50 points) Given the Income Statement and Balance Sheet Compute: Current Ratio Acid-Test...
Problem # 1 (50 points) Given the Income Statement and Balance Sheet Compute: Current Ratio Acid-Test Ratio Days in Receivable Days in Inventory Operating Profit Margin Total Asset Tumover Fixed-asset turnover Debt Ratio Times Interest Earned Return on Equity Income Statement Balance Sheet Assets Cash Accounts Receivable Inventory Prepaid Expenses Total Current Assets Gross Plant and Equipment Accumulated Depreciation Net Fixed Assets Total Assets $200,000 $60,000 $100,000 $20,000 $380,000 $802,000 -$132,000 $670,000 $1,050,000 Sales (all credit) Cost of Goods Sold...
1. Which one of the following actions will increase the current ratio, all else constant? Assume...
1. Which one of the following actions will increase the current ratio, all else constant? Assume the current ratio is greater than 1.0. a. Cash purchase of inventory b. Cash payment of an account receivable C Cash payment of an account payable d. Cash sale of inventory at a loss 2. The Equity Multiplier is equal to: @ One plus the debt-equity ratio b. One plus the total asset turnover C. Total debt divided by total equity d. Total equity...
Ratios 2016 2015 a. Gross profit margin (%) 39.4 39.1 b. Operating profit margin (%) 5.1...
Ratios
2016
2015
a.
Gross profit margin (%)
39.4
39.1
b.
Operating profit margin (%)
5.1
7.5
c.
Net profit margin (%)
2.4
4.0
d.
Return on shareholders' equity (%)
14.1
25.2
e.
Return on assets (%)
3.1
5.2
f.
Times interest earned coverage
3.6
5.6
g.
Long-term debt-to-equity ratio
1.5
3.8
h.
Days of inventory
126.2
121.8
i.
Inventory turnover ratio
2.9
3.0
j.
Average collection
period
7.4
7.5
1-From 2015 to 2016, Macy’s, Inc., return on equity and...
Koala Ltd reports the following information: Net profit $80,000 Total assets 1,000,000 Current liabilities 220,000 Non-current...
Koala Ltd reports the following information: Net profit $80,000 Total assets 1,000,000 Current liabilities 220,000 Non-current liabilities 650,000 If current assets represent 40% of total assets, Koala Ltd's current ratio is: A. 0.92 times B. 1.54 times C. 1.82 times D. 4.55 times
SMOLIRA GOLF 2011 and 2012 Balance Sheets Liabilities and Owners' Equity 2011 Assets 2012 2012 2011...
SMOLIRA GOLF 2011 and 2012 Balance Sheets Liabilities and Owners' Equity 2011 Assets 2012 2012 2011 Current liabilities Current assets Cash Accounts receivable Inventory $ 23,184 12,000 11,571 $ 27,420 10,800 15,553 $ 24.255 15,235 27,155 Accounts payable Notes payable Other 24,046 12.448 25.392 $ 66,645 $ 46,755 $ 53.773 S 61.886 Total Total Long-term debt Owners' equity Common stock and paid-in surplus Accumulated retained earnings $ 80,000 $95,000 $ 40,000 219,826 $ 40,000 243,606 Fixed assets Net plant and...
Questions: 1. Compute the following ratios for PAYPAL HOLDINGS INC: CURRENT RATIO QUICK RATIO CASH RATIO...
Questions: 1. Compute the following ratios for PAYPAL HOLDINGS INC: CURRENT RATIO QUICK RATIO CASH RATIO TOTAL DEBT RATIO DEBT EQUITY RATIO TIMES INTEREST EARNED RATIO CASH COVERAGE RATIO INVENTORY TURNOVER DAYS SALES IN INVENTORY RECEIVABLES TURNOVER DAYS SALES IN RECEIVABLES TOTAL ASSET TURNOVER CAPITAL INTENSITY PROFIT MARGIN RETURN ON ASSETS RETURN ON EQUITY PRICE EARNINGS RATIO MARKET TO BOOK RATIO 2. Decompose the ROE using the extended Du-Pont Analysis.
assets Total current liabilities Debt Ratio C. Debt ratio -the proportion of a company's assets financed with debt. Debt ratio = Total Liabilities Total Assets D How transactions affect the ratios Given the following balances: Current Assets $150,000 Current Liabilities 75,000 Total Assets Total Liabilities 300,000 120,000 1. What is net working capital? 2. What are the current and debt ratios? 3. How would the following transactions affect the current ratio & the debt ratio (Improve, Deteriorate, No Change)? a....
Problem # 1 (50 points) Given the Income Statement and Balance Sheet Compute: Current Ratio Acid-Test Ratio Days in Receivable Days in Inventory Operating Profit Margin Total Asset Tumover Fixed-asset turnover Debt Ratio Times Interest Earned Return on Equity Income Statement Balance Sheet Assets Cash Accounts Receivable Inventory Prepaid Expenses Total Current Assets Gross Plant and Equipment Accumulated Depreciation Net Fixed Assets Total Assets $200,000 $60,000 $100,000 $20,000 $380,000 $802,000 -$132,000 $670,000 $1,050,000 Sales (all credit) Cost of Goods Sold...
1. Which one of the following actions will increase the current ratio, all else constant? Assume the current ratio is greater than 1.0. a. Cash purchase of inventory b. Cash payment of an account receivable C Cash payment of an account payable d. Cash sale of inventory at a loss 2. The Equity Multiplier is equal to: @ One plus the debt-equity ratio b. One plus the total asset turnover C. Total debt divided by total equity d. Total equity...
Ratios
2016
2015
a.
Gross profit margin (%)
39.4
39.1
b.
Operating profit margin (%)
5.1
7.5
c.
Net profit margin (%)
2.4
4.0
d.
Return on shareholders' equity (%)
14.1
25.2
e.
Return on assets (%)
3.1
5.2
f.
Times interest earned coverage
3.6
5.6
g.
Long-term debt-to-equity ratio
1.5
3.8
h.
Days of inventory
126.2
121.8
i.
Inventory turnover ratio
2.9
3.0
j.
Average collection
period
7.4
7.5
1-From 2015 to 2016, Macy’s, Inc., return on equity and...
SMOLIRA GOLF 2011 and 2012 Balance Sheets Liabilities and Owners' Equity 2011 Assets 2012 2012 2011 Current liabilities Current assets Cash Accounts receivable Inventory $ 23,184 12,000 11,571 $ 27,420 10,800 15,553 $ 24.255 15,235 27,155 Accounts payable Notes payable Other 24,046 12.448 25.392 $ 66,645 $ 46,755 $ 53.773 S 61.886 Total Total Long-term debt Owners' equity Common stock and paid-in surplus Accumulated retained earnings $ 80,000 $95,000 $ 40,000 219,826 $ 40,000 243,606 Fixed assets Net plant and...
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