Analyze the significant trends for the 3 years for liquidity. Include the inventory valuation method the company
Fantastic news! We've Found the answer you've been seeking!
Question:
Analyze the significant trends for the 3 years for liquidity. Include the inventory valuation method the company uses, as well as the policy for credit and collection and the effect these have on liquidity ratios.
Transcribed Image Text:
Liquidity Ratios Short-Term Debt Paying Ratios Working Capital Current Ratio Acid Test Ratio Cash Ratio Long-Term Solvency or Financial Leverage Times Interested Eamed Fixed Charge Coverage Debt Ratio Debt: Equity Ratio Asset Utilization or Turnover Ratios Inventory tumover Days Sales in Inventory Receivables Turnover Days Sales in Receivables Operating Cycle Profitability Ratios Net Profit Margin Ratio Total Asset Tumover Return on Assets Operating Income Margin Sales to Fixed Assets ROE Return on Common Equity Gross Profit Margin Investor Ratios Degree of Financial Leverage Earnings per Share Diluted Earnings per Share Price/Earnings Ratio Percentage of Earnings Retained Dividend Payout Dividend Yield 2019 1359759 1.55 0.70 0.41 -10.81 1.05 77.3% 3.41 3.64 100.34 11.15 5.5% 1.55 -8% -6% 7.80 -35% -0.89 32% 4.41 -4.94 -4.94 211.73 -14% 6% Company 2018 1832340 1.88 0.62 0.24 -1.25 1.03 61.0% 1.57 3.03 120.62 3.99 1.1% 1.77 -2% -1% 6.49 -5% -0.20 34% 2.57 -1.02 -1.02 1089.50 -63% 4% 2017 1805393 1.83 0.57 0.16 11.59 2.02 59.0% 1.44 2.90 126.07 35.68 3.4% 1.78 6% 6% 6.47 15% 0.62 36% 2.44 3.05 3.04 371.92 20% 3% Competitor Industry Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Liquidity Ratios Short-Term Debt Paying Ratios Working Capital Current Ratio Acid Test Ratio Cash Ratio Long-Term Solvency or Financial Leverage Times Interested Eamed Fixed Charge Coverage Debt Ratio Debt: Equity Ratio Asset Utilization or Turnover Ratios Inventory tumover Days Sales in Inventory Receivables Turnover Days Sales in Receivables Operating Cycle Profitability Ratios Net Profit Margin Ratio Total Asset Tumover Return on Assets Operating Income Margin Sales to Fixed Assets ROE Return on Common Equity Gross Profit Margin Investor Ratios Degree of Financial Leverage Earnings per Share Diluted Earnings per Share Price/Earnings Ratio Percentage of Earnings Retained Dividend Payout Dividend Yield 2019 1359759 1.55 0.70 0.41 -10.81 1.05 77.3% 3.41 3.64 100.34 11.15 5.5% 1.55 -8% -6% 7.80 -35% -0.89 32% 4.41 -4.94 -4.94 211.73 -14% 6% Company 2018 1832340 1.88 0.62 0.24 -1.25 1.03 61.0% 1.57 3.03 120.62 3.99 1.1% 1.77 -2% -1% 6.49 -5% -0.20 34% 2.57 -1.02 -1.02 1089.50 -63% 4% 2017 1805393 1.83 0.57 0.16 11.59 2.02 59.0% 1.44 2.90 126.07 35.68 3.4% 1.78 6% 6% 6.47 15% 0.62 36% 2.44 3.05 3.04 371.92 20% 3% Competitor Industry Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail
Expert Answer:
Answer rating: 100% (QA)
The significant trends for the 3 years for liquidity are as follows The current ratio has decreased ... View the full answer
Related Book For
Auditing a risk based approach to conducting a quality audit
ISBN: 978-1133939153
9th edition
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg
Posted Date:
Students also viewed these accounting questions
-
Analyze whether meditation instruction has a significant effect on reducing blood pressure? Hypertension Some common strategies for treating hypertensive patients by nonpharmacologic methods include...
-
For level 3 valuation (fair value), the company must include the valuation technique used to measure fair value, a reconciliation of the changes in fair value during the period, and a related...
-
Inventory valuation methods: computations and concepts. Wild Riders Surfboard Company began business on January 1 of the current year. Purchases of surfboards were as follows: Date Quantity Unit Cost...
-
A solid of constant density is bounded below by the plane z = 0, on the sides by the elliptical cylinder x 2 + 4y 2 = 4, and above by the plane z = 2 - x. a. Find x and y. b. Evaluate the integral...
-
Database Systems is considering expansion into a new product line. Assets to support expansion will cost $380,000. It is estimated that Database can generate $1,410,000 in annual sales, with an 8...
-
One of the best ways to learn how to solve a word problem in algebra is to design word problems of your own. Creating a word problem makes you very aware of precisely how much information is needed...
-
What is a nation-state, and how is it an imagined community?
-
This problem continues the Daniels Consulting situation from Problem P5-45 in Chapter 5. Consider the January transactions for Daniels Consulting that were presented in Chapter 5. Daniels uses the...
-
1. In Figure 1, draw a FBD of the tennis ball (at that exact spot) and then calculate the tension in the rope. Use 50 m/s for velocity and a radius of 0.8 m. Provide me with a rope that you would...
-
Q4. Review the accounts receivable lead sheet memo and related workpapers (AR.3.1 to AR.3.4). Evaluate the auditors' tickmarks, comments, and explanations in the memo and on the lead sheet. Identify...
-
SUM UP! 1. What characterize a spontaneous process? 2. How does spontaneity apply to a chemical reaction? 3. How do entropy changes occur? 4. How is hot object in an open area gets cooler?
-
14. Two sounds produce a beat frequency of 5 Hz. If one of the sounds has a frequency of 200 Hz what are the possible frequencies of the other sound?
-
43. A simple pendulum has a length of 1.20 m and is pulled from equilibrium by 4.00 to the right and then released. The clock starts (t = 0) when the mass on the simple pendulum is at a position of...
-
42. An oscillating system moves with simple harmonic motion. If the clock starts at t = 0 at a point when the system has completed 4/7 th of a cycle what is the phase constant?
-
Bryant & Co. has sales of $292,277, cost of goods sold of $163,300, net profit of $10,932, net fixed assets of $154,500, and current assets of $97,877. What is the total asset turnover ratio? (round...
-
Today is January 2nd, 2024. As ABC's new financial analyst, your first mandate is to assess the value of the company. The last divided distributed in 2023 was $3.00. To properly value to common share...
-
An airport car rental company has 1000 cars to rent. If they rent a cars then their monthly profit, in dollars, is given by, P(x) 2x + 3100 - 60,000. How many cars should they rent in order to...
-
Nike manufactures shoes and sportswear. How has the Internet changed the way this company communicates with its suppliers and retail customers?
-
One principle of the control environment is the organization's commitment to develop, attract, and retain competent individuals. How would management go about evaluating the competency of accounting...
-
In analyzing the results of the tests of controls, there are two potential outcomes: (a) Deficiencies are identified (b) Deficiencies are not identified. What are alternative courses of action for...
-
Refer to Exhibit, which describes the AICPAs rules of conduct. Read Rule 302 and answer the following questions. a. What is a contingent fee? b. Why are external auditors not allowed to accept...
-
The standard enthalpy change of combustion of acetylene is \(-1300.48 \mathrm{~kJ}\) at \(298 \mathrm{~K}\) with \(\mathrm{H}_{2} \mathrm{O}\) in the liquid state. Calculate the standard enthalpy of...
-
Which instrument is used to determine the heat of combustion of a fuel?
-
A piston-cylinder device contains \(1.2 \mathrm{~kg}\) of saturated water vapour at \(180^{\circ} \mathrm{C}\). Heat is transferred to steam. As a result, steam expands reversibly to a final pressure...
Study smarter with the SolutionInn App