The financial statements of Evans News, Inc., include the following items: (Click the icon to view...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The financial statements of Evans News, Inc., include the following items: (Click the icon to view the financial statements.) Requirements Requirement 1. Compute the following ratios for 2020 and 2019. a. Current ratio. Select the formula, and then enter the amounts to calculate the current ratio. (Round the ratios to two decimal places.) 2020 2019 2020 ( 2019 ( b. Quick (acid-test) ratio. Select the formula, and then enter the amounts to calculate the acid-test ratio. (Abbreviation 2020 2019 + + 2020 = + || | || c. Inventory turnover and days' inventory outstanding (DIO). Begin by selecting the formula, and then enter the amounts to calculate inventory turnover. ( Inventory turnover = Current ratio = = Now, select the formula, and then enter the amounts to calculate days' inventory outstanding = Days' inve = II Data table Balance sheet: Cash Short-term investments Net receivables Inventory Prepaid expenses Total current assets Accounts payable Total current liabilities Income statement: Net credit sales Cost of goods sold .. ... $ $ 2020 41,000 $ 8,000 75,000 92,000 4,000 220,000 60,000 130,000 493,000 $ 276,000 2019 67,000 22,000 78,000 75,000 5,000 247,000 35,000 92,000 509,000 279,000 2018 = 25,000 65,000 15,000 two decimal places.) earest whole number.) b. Quick (acid-test) ratio. Select the formula, and then enter the amounts to calculate the acid-test ratio. (Abbreviations used: Avg = average, ST short-term, and Cash* = cash and cash equivalents. Round the ratios to two decimal places.) ( 2020 ( 2019 ( + 2020 2019 + 2020 2019 = c. Inventory turnover and days' inventory outstanding (DIO). Begin by selecting the formula, and then enter the amounts to calculate inventory turnover. (Round the ratios to two decimal places.) Inventory turnover = = 2020 2019 Now, select the formula, and then enter the amounts to calculate days' inventory outstanding (DIO). (Enter ratios to two decimal places and use a 365-day year. Round your final answers to the nearest whole number.) Days' inventory outstanding (DIO) II = = Accounts receivable turnover = = = = = d. Accounts receivable turnover. Select the formula, and then enter the amounts to calculate accounts receivable turnover. (Round the ratios to two decimal places.) II Acid-test ratio e. Days' sales in average receivables or days' sales outstanding (DSO). Select the formula, and then enter the amounts to calculate days' sales in average receivables or days' sales outstanding (DSO). (Enter ratios to two decimal places and use a 365-day year. Round your final answers to the e. Days' sales in average receivables or days' sales outstanding (DSO). Select the formula, and then enter the amounts to calculate days' sales in average receivables or days' sales outstanding (DSO). (Enter ratios to two decimal places and use a 365-day year. Round your final answers to the nearest whole number.) 2020 2019 2020 2019 f. Accounts payable turnover and days' payable outstanding (DPO). Use cost of goods sold the formula for accounts payable turnover. Begin by selecting the formula, and then enter the amounts to calculate accounts payable turnover. (Round the ratios to two decimal places.) Accounts payable turnover 2020 2019 = 2020 2019 = Now, select the formula, and then enter the amounts to calculate days' payable outstanding (DPO). (Enter ratios to two decimal places and use a 365-day year. Round your final answers to the nearest whole number.) Days' payable outstanding (DPO) Ratio = = = = = Days' sales outstanding (DSO) g. Cash conversion cycle (in days). (Abbreviations used: Avg = average and ST short-term.) B = = Cash conversion cycle Requirement 2. Evaluate the company's liquidity and current debt-paying ability for 2020. Has it improved or deteriorated from 2019? Improved or Deteriorated 2020 2019 Now, select the formula, and then enter the amounts to calculate days' payable outstanding (DPO). (Enter ratios to two decimal places and use a 365-day year. Round your final answers to the nearest whole number.) Days' payable outstanding (DPO) 2020 2019 2020 2019 g. Cash conversion cycle (in days). (Abbreviations used: Avg = average and ST = short-term.) 1 + Ratio = a. Current ratio b. Quick (acid test) ratio c. Inventory turnover and days' inventory outstanding (DIO) d. Accounts receivable turnover = and = = Requirement 2. Evaluate the company's liquidity and current debt-paying ability for 2020. Has it improved or deteriorated from 2019? Improved or Deteriorated = e. Days' sales in average receivables or days' sales outstanding (DSO) f. Accounts payable turnover and days' payable outstanding (DPO) g. Cash conversion cycle (in days) Requirement 3. As a manager of this company, what would you try to improve next year? The factors that need the most improvement are Cash conversion cycle The company needs to make sales and keep inventory on hand, as well as The financial statements of Evans News, Inc., include the following items: (Click the icon to view the financial statements.) Requirements Requirement 1. Compute the following ratios for 2020 and 2019. a. Current ratio. Select the formula, and then enter the amounts to calculate the current ratio. (Round the ratios to two decimal places.) 2020 2019 2020 ( 2019 ( b. Quick (acid-test) ratio. Select the formula, and then enter the amounts to calculate the acid-test ratio. (Abbreviation 2020 2019 + + 2020 = + || | || c. Inventory turnover and days' inventory outstanding (DIO). Begin by selecting the formula, and then enter the amounts to calculate inventory turnover. ( Inventory turnover = Current ratio = = Now, select the formula, and then enter the amounts to calculate days' inventory outstanding = Days' inve = II Data table Balance sheet: Cash Short-term investments Net receivables Inventory Prepaid expenses Total current assets Accounts payable Total current liabilities Income statement: Net credit sales Cost of goods sold .. ... $ $ 2020 41,000 $ 8,000 75,000 92,000 4,000 220,000 60,000 130,000 493,000 $ 276,000 2019 67,000 22,000 78,000 75,000 5,000 247,000 35,000 92,000 509,000 279,000 2018 = 25,000 65,000 15,000 two decimal places.) earest whole number.) b. Quick (acid-test) ratio. Select the formula, and then enter the amounts to calculate the acid-test ratio. (Abbreviations used: Avg = average, ST short-term, and Cash* = cash and cash equivalents. Round the ratios to two decimal places.) ( 2020 ( 2019 ( + 2020 2019 + 2020 2019 = c. Inventory turnover and days' inventory outstanding (DIO). Begin by selecting the formula, and then enter the amounts to calculate inventory turnover. (Round the ratios to two decimal places.) Inventory turnover = = 2020 2019 Now, select the formula, and then enter the amounts to calculate days' inventory outstanding (DIO). (Enter ratios to two decimal places and use a 365-day year. Round your final answers to the nearest whole number.) Days' inventory outstanding (DIO) II = = Accounts receivable turnover = = = = = d. Accounts receivable turnover. Select the formula, and then enter the amounts to calculate accounts receivable turnover. (Round the ratios to two decimal places.) II Acid-test ratio e. Days' sales in average receivables or days' sales outstanding (DSO). Select the formula, and then enter the amounts to calculate days' sales in average receivables or days' sales outstanding (DSO). (Enter ratios to two decimal places and use a 365-day year. Round your final answers to the e. Days' sales in average receivables or days' sales outstanding (DSO). Select the formula, and then enter the amounts to calculate days' sales in average receivables or days' sales outstanding (DSO). (Enter ratios to two decimal places and use a 365-day year. Round your final answers to the nearest whole number.) 2020 2019 2020 2019 f. Accounts payable turnover and days' payable outstanding (DPO). Use cost of goods sold the formula for accounts payable turnover. Begin by selecting the formula, and then enter the amounts to calculate accounts payable turnover. (Round the ratios to two decimal places.) Accounts payable turnover 2020 2019 = 2020 2019 = Now, select the formula, and then enter the amounts to calculate days' payable outstanding (DPO). (Enter ratios to two decimal places and use a 365-day year. Round your final answers to the nearest whole number.) Days' payable outstanding (DPO) Ratio = = = = = Days' sales outstanding (DSO) g. Cash conversion cycle (in days). (Abbreviations used: Avg = average and ST short-term.) B = = Cash conversion cycle Requirement 2. Evaluate the company's liquidity and current debt-paying ability for 2020. Has it improved or deteriorated from 2019? Improved or Deteriorated 2020 2019 Now, select the formula, and then enter the amounts to calculate days' payable outstanding (DPO). (Enter ratios to two decimal places and use a 365-day year. Round your final answers to the nearest whole number.) Days' payable outstanding (DPO) 2020 2019 2020 2019 g. Cash conversion cycle (in days). (Abbreviations used: Avg = average and ST = short-term.) 1 + Ratio = a. Current ratio b. Quick (acid test) ratio c. Inventory turnover and days' inventory outstanding (DIO) d. Accounts receivable turnover = and = = Requirement 2. Evaluate the company's liquidity and current debt-paying ability for 2020. Has it improved or deteriorated from 2019? Improved or Deteriorated = e. Days' sales in average receivables or days' sales outstanding (DSO) f. Accounts payable turnover and days' payable outstanding (DPO) g. Cash conversion cycle (in days) Requirement 3. As a manager of this company, what would you try to improve next year? The factors that need the most improvement are Cash conversion cycle The company needs to make sales and keep inventory on hand, as well as
Expert Answer:
Answer rating: 100% (QA)
To compute the ratios for 2020 and 2019 well use the following formulas a Current ratio Current Assets Current Liabilities b Quick acidtest ratio Current Assets Inventory Current Liabilities c Invento... View the full answer
Related Book For
Accounting Principles
ISBN: 978-1119411482
13th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
Students also viewed these accounting questions
-
Fashions Ltd has a chain of women's clothing boutiques. It focuses on fashionable everyday clothing at a midrange price. Its shops are in local shopping centres rather than fashionable high end...
-
Carol, a resident of Denver, Colorado, is a homemaker who has a private collection of old China. She sees a plate advertised on eBay by a Canadian seller, Antiques-R-Us, which is located in Toronto,...
-
Find r(t) and v(t) given a(t) and the initial velocity and position. a(t) = (t, 4), v(0) = (3,-2), r(0) = (0,0)
-
Military terminology and strategy are often used in dealing with global competitors. In your opinion, is there any risk in doing so? Is there a risk in failing to do so? Why?
-
Assuming stall-on-branch and no delay slots, what speedup is achieved on this code if branch outcomes are determined in the ID stage, relative to the execution where branch outcomes are determined in...
-
Determine whether the events are mutually exclusive. Then determine whether the events are independent or dependent. Explain your reasoning. Event A: A bowler having the highest game in a 40-game...
-
Assume the Federal Interstate Commission began the fiscal year with the following account balances: 1. Congress passed a spending bill providing $12,000,000 to fund the agencys operations for the...
-
3. The following three-span beam is subjected to two concentrated dead loads as shown below, a uniformly-distributed dead load of 0.8 Kip/ft (including its selfweight), and live load of 1.5 kip/ft...
-
A survey of 100 firms found the following evidence regarding profitability and market share: Is there evidence that market share and profitability are associated? Profitability Market share <15%...
-
Which of the following best describes the impact of technological change on output? a) It creates a limited amount of output. b) It reduces the labor needed to produce a given amount of output. c) It...
-
What is the income summary account for? What is another name for the income summary account? What happens to the revenue and expense accounts after the closing process? Why do we close the draw...
-
The rule suggests that if a task can be completed in a short amount of time, it is often more efficient to take care of it in the moment rather than putting it off for later. Swiss Cheese time...
-
Suppose that the input is 10 30 16 25 76 -1. What is the output of the following code? int num = 0; int sum; int count = 0; cin >> sum; while (count < 3) { } cin >> num; sum sum + num; count++; "...
-
In your personal and professional life, you will use math for many reasons.Discuss the following with your classmates:Pick three concepts you learned this week and explain why they are important for...
-
ABC firm has a ROA of 15%, Net Profit Margin of 2% and ROE of 19%. What is its Equity Multiplier?
-
6. Kevin purchased a factory building sitting on 3 acres of land on April 15, 2013, for $4,500,000. Land in the vicinity of the factory building was selling for $100,000 per acre in 2013. Kevin...
-
1. Below is depicted a graph G constructed by joining two opposite vertices of C12. Some authors call this a "theta graph" because it resembles the Greek letter 0. a. What is the total degree of this...
-
Gunkelson Company sells equipment on September 30, 2020, for $18,000 cash. The equipment originally cost $72,000 and as of January 1, 2020, had accumulated depreciation of $42,000. Depreciation for...
-
Robert Eberle owns and manages Roberts Restaurant, a 24-hour restaurant near the citys medical complex. Robert employs 9 full-time employees and 16 part-time employees. He pays all of the full-time...
-
Wade plc estimates that it will produce 6,000 units of product IOA during the current month. Budgeted variable manufacturing costs per unit are direct materials 7, direct labor 13, and overhead 18....
-
For the CPM Calculation Exercise found on the companion website, determine the ES, EF, LS, LF, FF, and TF for each activity. Identify the activities through which the critical path runs. How many...
-
Why is the bar chart not an adequate planning and scheduling tool?
-
What are impediments to planning, both at the beginning of a project and throughout the project?
Study smarter with the SolutionInn App