Compare and analyze ratios from
both companies.
Homework Answers
Inventory Turnover Ratio means how many times inventory is getting churned.
Formula:
where,
This is one of the financial metrics which helps in assessing whether company is efficiently managing its inventory or not.
Hence, when we are comparing it with any peer industry THE HIGHER THE RATIO, THE BETTER.
QUES1. company a 4.34
company b 9.67
ANS Company b is better because having higher ratio as compared to company a
Asset Turnover Ratio
Formula:
where,
This ratio analyse if entity is efficiently using its asset or not.
HIGHER THE RATIO, BETTER it is
QUES1. company a 0.37
company b 0.82
ANS Company b is better because having higher ratio as compared to company a
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Compare and analyze ratios from both companies. - Inventory turnover: 1 / 2) Inventory Turnover (A:...
Indicate what is meant by the following ratio calculations. 1. Liquidity Ratios Current Ratio = Current...
Indicate what is meant by the following ratio calculations. 1. Liquidity Ratios Current Ratio = Current Assets Current Liabilities = 515800 626900 = 0.82 : 1 Quick Ratio = Quick Assets Current Liabilities = 42700 + 205800 626900 = 0.40 Cash Ratio = Cash & Cash Equivalents Current Liabilities = 42700 626900 = 0.0681 : 1 2. Turnover / Activity Ratios Inventory Turnover = COGS Average Inventories...
Compare and analyze ratios from both companies. Dec 31 Dec 31, Dec 31, Dec 31, Dec...
Compare and analyze ratios from
both companies.
Dec 31 Dec 31, Dec 31, Dec 31, Dec 31, 2018 2017 2016 2015 2014 Current ratio 1.28 1.24 1.05 1.34 1.02 Quick ratio 0.66 0.90 0.98 0.89 0.81 Cash ratio 0.76 0.67 0.55 0.84 0.74 Dec 31 Dec 27, Dec 29, Dec 30, Dec 26, 2018 2017 2016 2015 2014 Current ratio 0.99 1.5 1.28 1.31 1.14 Quick ratio 105 0.82 1.29 1.08 0.85 Cash ratio 0.95 0.50 0.76 0.68 0.48
Solve the Average Merchandise Inventory and Inventory Turnover for 2017, 2018, and 2019. 2018 $ 2017...
Solve the Average Merchandise Inventory and Inventory Turnover
for 2017, 2018, and 2019.
2018 $ 2017 $ $ 214,000 166,000 177,000 Net Sales Revenue Cost of Goods Sold: Beginning Merchandise Inventory Net Cost of Purchases Cost of Goods Available for Sale $ $ 26,000 140,000 $ 31,000 106,000 47,000 92,000 166,000 35,000 137,000 26,000 139,000 31,000 Less: Ending Merchandise Inventory Cost of Goods Sold 131,000 111,000 108,000 Gross Profit Operating Expenses 83,000 57,000 26,000 55,000 30,000 25,000 69,000 30,000 39,000...
Required Compute the accounts receivable turnover for 2018. Compute the inventory turnover for 2018. Compute the...
Required
Compute the accounts receivable turnover for 2018.
Compute the inventory turnover for 2018.
Compute the net margin for 2017.
Selected data from Rooney Company follow: Balance Sheets As of December 31 Accounts receivable Allowance for doubtful accounts Net accounts receivable Inventories, lower of cost or market 2018 $407,000 (20,350) $386,650 $478,000 2017 $375,000 (15,000) $360,000 $445,000 Income Statement For the Years Ended December 31 2018 Net credit sales $2,018,000 Net cash sales 410,000 Net sales 2,428,000 Cost of goods...
Total assets turnover: 1.2x Days sales outstanding: 30.5 daysa Inventory turnover ratio: 4x Fixed assets turnover:...
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...
BusinessCourse Inventory Turnover The following financial data is from Brenner Instruments' financial statements (thousands of dollars,...
BusinessCourse Inventory Turnover The following financial data is from Brenner Instruments' financial statements (thousands of dollars, except earnings per share.) 2019 Sales revenue $210,000 Cost of goods sold 125,000 Net income 8,300 Dividends 2,600 Earnings per share 4.15 Support BusinessCourse (usanus of DOllars) Dec. 31, 2019 Dec. 31, 2018 Assets Cash $18,300 $18,000 Accounts receivable (net) 41,000 46,000 39,500 Inventory 43,700 Total current assets 103,800 102,700 Plant assets (net) 52,600 50,500 Other assets 15,600 13,800 $172,000 $167,000 Total assets Liabilities...
1. Pick two publicly traded companies in the same industry. 2. Calculate the ratios from your...
1. Pick two publicly
traded companies in the same industry.
2. Calculate the
ratios from your textbook or any other ratios you deem necessary
for each company for two years. Some examples are working capital,
current ratio, current cash debt coverage ratio, inventory turnover
ratio, days in inventory, receivables turnover ratio, average
collection period, debt to asset ratio, cash debt coverage ratio,
times interest earned ratio, free cash flow, earnings per share,
price earnings ratio, gross profit rate, profit margin...
Help solve for asset turnover, return on common stockholders equity, and gross profit rate ratios. Thank...
Help solve for asset turnover, return on
common stockholders equity, and gross profit rate ratios. Thank
you
Suppose selected comparative statement data for the giant bookseller Barnes & Noble are presented here. All balance sheet data are as of the end of the fiscal year (in millions). Net sales Cost of goods sold Net income Accounts receivable Inventory Total assets Total common stockholders' equity 2019 $4,950 3,501 75 65 1,150 2,950 971 2018 $5,701 3,801 171 103 1,350 3,250 1,141...
Instructions For 2017 and 2018, calculate current ratio, quick (acid-test) ratio, inventory turnover and days' inventory...
Instructions For 2017 and 2018, calculate current ratio, quick (acid-test) ratio, inventory turnover and days' inventory outstanding (DIO), accounts receivable turnover, days' sales in average receivables or days' sales outstanding (DSO), accounts payable turnover, days' payable outstanding (DPO), and cash conversion cycle (in days). a. Use the cost of goods sold in the formula for accounts payable turnover. b. Use a 365-day year for calculations as needed. c. Use cell references from prior calculations, if applicable. (Always use cell references...
Instructions For 2017 and 2018, calculate current ratio, quick (acid-test) ratio, inventory turnover and days' inventory...
Instructions For 2017 and 2018, calculate current ratio, quick (acid-test) ratio, inventory turnover and days' inventory outstanding (DIO), accounts receivable turnover, days' sales in average receivables or days' sales outstanding (DSO), accounts payable turnover, days' payable outstanding (DPO), and cash conversion cycle (in days). a. Use the cost of goods sold in the formula for accounts payable turnover. b. Use a 365-day year for calculations as needed. c. Use cell references from prior calculations, if applicable. (Always use cell references...
Compare and analyze ratios from
both companies.
Dec 31 Dec 31, Dec 31, Dec 31, Dec 31, 2018 2017 2016 2015 2014 Current ratio 1.28 1.24 1.05 1.34 1.02 Quick ratio 0.66 0.90 0.98 0.89 0.81 Cash ratio 0.76 0.67 0.55 0.84 0.74 Dec 31 Dec 27, Dec 29, Dec 30, Dec 26, 2018 2017 2016 2015 2014 Current ratio 0.99 1.5 1.28 1.31 1.14 Quick ratio 105 0.82 1.29 1.08 0.85 Cash ratio 0.95 0.50 0.76 0.68 0.48
Solve the Average Merchandise Inventory and Inventory Turnover
for 2017, 2018, and 2019.
2018 $ 2017 $ $ 214,000 166,000 177,000 Net Sales Revenue Cost of Goods Sold: Beginning Merchandise Inventory Net Cost of Purchases Cost of Goods Available for Sale $ $ 26,000 140,000 $ 31,000 106,000 47,000 92,000 166,000 35,000 137,000 26,000 139,000 31,000 Less: Ending Merchandise Inventory Cost of Goods Sold 131,000 111,000 108,000 Gross Profit Operating Expenses 83,000 57,000 26,000 55,000 30,000 25,000 69,000 30,000 39,000...
Required
Compute the accounts receivable turnover for 2018.
Compute the inventory turnover for 2018.
Compute the net margin for 2017.
Selected data from Rooney Company follow: Balance Sheets As of December 31 Accounts receivable Allowance for doubtful accounts Net accounts receivable Inventories, lower of cost or market 2018 $407,000 (20,350) $386,650 $478,000 2017 $375,000 (15,000) $360,000 $445,000 Income Statement For the Years Ended December 31 2018 Net credit sales $2,018,000 Net cash sales 410,000 Net sales 2,428,000 Cost of goods...
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...
BusinessCourse Inventory Turnover The following financial data is from Brenner Instruments' financial statements (thousands of dollars, except earnings per share.) 2019 Sales revenue $210,000 Cost of goods sold 125,000 Net income 8,300 Dividends 2,600 Earnings per share 4.15 Support BusinessCourse (usanus of DOllars) Dec. 31, 2019 Dec. 31, 2018 Assets Cash $18,300 $18,000 Accounts receivable (net) 41,000 46,000 39,500 Inventory 43,700 Total current assets 103,800 102,700 Plant assets (net) 52,600 50,500 Other assets 15,600 13,800 $172,000 $167,000 Total assets Liabilities...
1. Pick two publicly
traded companies in the same industry.
2. Calculate the
ratios from your textbook or any other ratios you deem necessary
for each company for two years. Some examples are working capital,
current ratio, current cash debt coverage ratio, inventory turnover
ratio, days in inventory, receivables turnover ratio, average
collection period, debt to asset ratio, cash debt coverage ratio,
times interest earned ratio, free cash flow, earnings per share,
price earnings ratio, gross profit rate, profit margin...
Help solve for asset turnover, return on
common stockholders equity, and gross profit rate ratios. Thank
you
Suppose selected comparative statement data for the giant bookseller Barnes & Noble are presented here. All balance sheet data are as of the end of the fiscal year (in millions). Net sales Cost of goods sold Net income Accounts receivable Inventory Total assets Total common stockholders' equity 2019 $4,950 3,501 75 65 1,150 2,950 971 2018 $5,701 3,801 171 103 1,350 3,250 1,141...
Instructions For 2017 and 2018, calculate current ratio, quick (acid-test) ratio, inventory turnover and days' inventory outstanding (DIO), accounts receivable turnover, days' sales in average receivables or days' sales outstanding (DSO), accounts payable turnover, days' payable outstanding (DPO), and cash conversion cycle (in days). a. Use the cost of goods sold in the formula for accounts payable turnover. b. Use a 365-day year for calculations as needed. c. Use cell references from prior calculations, if applicable. (Always use cell references...
Instructions For 2017 and 2018, calculate current ratio, quick (acid-test) ratio, inventory turnover and days' inventory outstanding (DIO), accounts receivable turnover, days' sales in average receivables or days' sales outstanding (DSO), accounts payable turnover, days' payable outstanding (DPO), and cash conversion cycle (in days). a. Use the cost of goods sold in the formula for accounts payable turnover. b. Use a 365-day year for calculations as needed. c. Use cell references from prior calculations, if applicable. (Always use cell references...
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