(a) Use the data in Problem and Case 4.11. Calculate the two liquidity ratios for Creative Advertising...
Question:
(b) What can you conclude from these ratios?
In problem
Transcribed Image Text:
Creative Advertising Limited Income Statement for the year ended December 31, 2010 400,000 210,000 190,000 75,000 s 115,000 Sales Cost of goods sold Gross profit Expenses (excluding interest) EBIT Interest expense EBT Income tax expense (40%) Net income Preferred dividends Net income available to common shareholders 2009 350,000 185,000 s 165,000 55,000 s 110,000 20,000 $ 90,000 36,000 S 54,000 2,000 $ 52,000 $ 95,000 38,000 $ 57,000 2.000 S 55,000 Creative Advertising Limited Statement of Retained Earnings for the year ended December 31 Opening retained earnings Net income available to common shareholders Dividends to common shareholders Closing retained earnings 2010 35,000 55,000 10,000 $ 80,000 2009 $ (7,000) 52,000 10,000 35,000 Creative Advertising Limited Balance Sheet as at December 31, 2010 2009 Assets Current assets Cash Accounts receivable Inventory Total current assets Property, plant, and equipment Intangible assets Total assets 25,000 50,000 50,000 125,000 500,000 50,000 $675,000 15,000 40,000 45,000 100,000 400,000 35,000 $535,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 68% (22 reviews)
Creative Advertising Limited a The liquidity ratios for ...View the full answer
Answered By
Qurat Ul Ain
Successful writing is about matching great style with top content. As an experienced freelance writer specialising in article writing and ghostwriting, I can provide you with that perfect combination, adapted to suit your needs.
I have written articles on subjects including history, management, and finance. Much of my work is ghost-writing, so I am used to adapting to someone else's preferred style and tone. I have post-graduate qualifications in history, teaching, and social science, as well as a management diploma, and so am well equipped to research and write in these areas.
4.80+
265+ Reviews
421+ Question Solved
Related Book For
Financial Management for Decision Makers
ISBN: 978-0138011604
2nd Canadian edition
Authors: Peter Atrill, Paul Hurley
Question Posted:
Students also viewed these Finance questions
-
(a) Use the data in Problem and Case 4.11. Calculate the leverage ratio and the times interest earned ratio for Creative Advertising Limited for 2010. Treat the preferred shares the same as long-term...
-
(a) Use the data in Problem and Case 4.11. Calculate five investment ratios, including the dividend cover ratio, for Creative Advertising Limited for 2010, given that there was an average of 50,000...
-
(a) Use the data in Problem and Case 4.11. Redo Problems and Cases 4.11 to 4.15 for 2009. Where an average figure is needed, assume the opening amount and closing amounts are the same. In problem...
-
A 16 lb weight is attached to a spring with a spring constant equal to 2 lb/ft. Neglect damping. The weight is released from rest at 3 ft below the equilibrium position. At t = 2r sec, it is struck...
-
How would you attempt to assess whether the technology used by an industry in a developing country was inappropriate?
-
1. Some air at 276 kPa occupies 32.4 m3. What is its absolute pressure if its volume is doubled at constant temperature? 2. Some helium at 17.5 psi gauge pressure occupies 35.0 ft3. What is the...
-
Consider the methanol oxidation data in Table B.20. Perform a thorough analysis of these data. What conclusions do you draw from this residual analysis? x x2 X3 X4 0 454 8.8 3.90 1.30 1.1 0 474 8.2...
-
StorSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning and end of March: Additional information for the month of March follows: Raw...
-
Radu takes out a $14,000 loan at 8% interest compounded annually. He agrees to make fixed payments of payments of $300 every month until it is paid off. How many payments are required to pay off the...
-
James Silva is a management accountant at Kleebler - Olson, where he is in charge of their investment portfolio. James worked with a data scientist to develop a model that predicts how a given loan...
-
Use the data in Problem and Case 4.11. The notes to the financial statements indicated that 80% of the sales for Creative Advertising Limited were credit sales. In problem Inventory purchases, 90% of...
-
Use your answers to Problems and Cases 4.11 to 4.16 to summarize the results for all the ratios for 2009 and 2010. Discuss the results of your ratio analysis. Recommend any action you think Creative...
-
An electron is in the ground state in a three-dimensional box, with V given by (3.60), with a = 1.00 nm, b = 2.00 nm, and c = 5.00 nm. Find the probability that a measurement of the electron's...
-
Electrostatic work \(W\) is done on a charged particle as it travels \(10 \mathrm{~mm}\) along a straight path from point A to point \(B\) in an electric field. If you return the particle to point...
-
What is the electric field magnitude a radial distance \(r\) from the central length axis of an infinitely long thin rod carrying a positive charge per unit length \(\lambda\) ?
-
What is the electric field a distance \(d\) from a thin, infinite nonconducting sheet with a uniform positive surface charge density \(\sigma\) ?
-
An electron moves from point \(A\) to point \(B\) under the influence of an electrostatic field in which the potential difference between A and B is negative. (a) If your system includes both the...
-
Express the SI unit of electric field in terms of joules and other SI base units.
-
Find the temperature distribution in a laterally insulated thin copper bar (c 2 = K/() = 1.158 cm 2 /sec) of length 100 cm and constant cross section with endpoints at x = 0 and 100 kept at 0C and...
-
For what reason might an exporter use standard international trade documentation (letter of credit, draft, order bill of lading) on an intrafirm export to its parent or sister subsidiary?
-
Should managers take changes in the total market value of the shares (that is, share price number of shares issued) over time as an indicator of shareholder value created (or lost)? Why?
-
If the net present value of future cash flows generated by the business represents the value of the business as a whole, how can we derive that part of the value of the business that is available to...
-
Devonian plc has the following long-term capital structure as at 30 November Year 4: The business has no long-term loans. In the year to 30 November Year 4, the operating profit (profit before...
-
Given the function. f(x) = ln (2x+3x) Compute f'(x). Enter your answer rounded to the nearest tenth
-
A motor-cycle manufacturing company desires a profit of $600,000. The fixed costs are $800,000. The unit selling price of the motor-cycle is $750 and the variable cost per unit is $680. How many...
-
3. ZR Corporation's stock has a beta coefficient equal to 0.8 and a required rate of return equal to 11 percent. If the expected rate of return on the market is 12.5 percent, what is the risk-free...
Problem Solving In Data Structures And Algorithms Using C 1st Edition - ISBN: 935620280X - Free Book
Study smarter with the SolutionInn App