ACC 205 Week 5 Exercise Assignment-Finanial Ratios | Documents and Forms | Research Papers

ACC 205 Week 5 Exercise Assignment-Finanial Ratios

ACC 205 Week 5 Exercise Assignment-Finanial Ratios PLDZ-1009
In Stock
$ 12.00 USD
Buy and Download   > Description

 

  1. Edison, Stagg, and Thornton have the following financial information at the close of business on July 10:

 

 

Edison

Stagg

Thornton

Cash

$6,000

$5,000

$4,000

 

Short-term investments

3,000

2,500

2,000

 

Accounts receivable

2,000

2,500

3,000

 

Inventory

1,000

2,500

4,000

 

Prepaid expenses

800

800

800

 

Accounts payable

200

200

200

 

Notes payable: short-term

3,100

3,100

3,100

 

Accrued payables

300

300

300

 

Long-term liabilities

3,800

3,800

3,800

 

 

 

 

 

 

 

 

 

  1. Compute the current and quick ratios for each of the three companies. (Round calculations to two decimal places.) Which firm is the most liquid? Why?

 

  1. The following data relate to Alaska Products, Inc:

 

 

 

 

 

 

20X5

20X4

Net credit sales

$832,000

$760,000

 

Cost of goods sold

530,000

400,000

 

Cash, Dec. 31

125,000

110,000

 

Average Accounts receivable

205,000

156,000

 

Average Inventory

70,000

50,000

 

Accounts payable, Dec. 31

115,000

108,000

 

 

 

Instructions

  1. Compute the accounts receivable and inventory turnover ratios for 20X5. Alaska rounds all calculations to two decimal places.

 

 

 

 

 

 

 

 

 

 

  1. Digital Relay has both preferred and common stock outstanding. The com­pany reported the following information for 20X7:

 

 

 

Net sales

$1,750,000

Interest expense

120,000

Income tax expense

80,000

Preferred dividends

25,000

Net income

130,000

Average assets

1,200,000

Average common stockholders' equity

500,000

 

 

 

 

  1. Compute the profit margin on sales ratio, the return on equity and the return on assets, rounding calculations to two decimal places.
  2. Does the firm have positive or negative financial leverage? Briefly ex­plain.

 

. Edison, Stagg, and Thornton have the following financial information at the close of business on July 10: Edison Stagg Thornton Cash $6,000 $5,000 $4,000 Short-term investments
Recent Reviews Write a Review
0 0 0 0 reviews