Compute the following ratios for Stowe Enterprises for 2014 and 2015: Financial statement information Short-TermAsset Management Long-Term
Question:
Compute the following ratios for Stowe Enterprises for 2014 and 2015:
Financial statement information
Short-TermAsset Management Long-Term Solvency Profitability Solvency Ratios Ratios Current ratio Total asset turnover Debt ratio Quick ratioInventory turnoverDebt-to-equity ratio Return on assets Cash ratio Ratios Ratios Profit margin Receivables turnover Equity multiplierReturn on equity Interest coverage Cash coverage ratio STOWE ENTERPRISES Sales Cost af goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income 2015 Statement of Comprchensive Income $4,500 2,400 500 S1,600 480 S1,120 380 S 740 S 186 S 554 Net income Addition to retained earnings Dividends STOWE ENTERPRISES Abbreviated Statement of Financial Position, 2014-2015 Assets 2014 2015 Liabilitics and 2014 2015 sharcholders cquity Current liabilities Current assets Cash Accounts receivable Inventory Fixed assets Net plant and equipment s 8001,800 Accounts payable 1,950 3,135 1,550 1,630 1,629 1,380 625 3,487 3,780 2,040 Notes payable 2,300 Other 746 Long-term debt Shareholders equity 4,620 5,130 common shares 570 1,146 Accumulated retained earnings Total liabilitics and 2,523 2,709 Total assets $10,505 $11270 sharcholders' equity S10,505 S11,270
Step by Step Answer:
Shortterm Solvency Ratios Current ratio for 2014 800 19503135 1550 1629 746 150 Current ratio for 20...View the full answer
Corporate Finance
ISBN: 978-0071339575
7th Canadian Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Ro
Related Video
Inventory turnover is a key metric that helps businesses evaluate the efficiency of their operations. A high turnover ratio is generally considered positive, indicating that the company is effectively selling its inventory and making efficient use of its resources. On the other hand, a low turnover ratio may indicate issues such as overstocking or slow sales and may require further examination to identify and address the underlying causes. Businesses use this ratio to make decisions about inventory levels, production schedules, and pricing strategies. It also helps businesses to identify areas where they may need to make improvements, such as reducing lead times for production or optimizing sales and marketing efforts. Additionally, inventory turnover is used by investors and analysts as a key performance indicator to evaluate the financial health and growth potential of a company.
Students also viewed these Managerial Accounting questions
-
5 points A manufacturing plant produces 5 000 000 kg per year of a certain product. The selling price of this product is SR 15/kg. The cost of producing this product is evaluated as shown in the...
-
The production budget shows that expected unit sales are 48,000. The desired ending inventory of finished goods = 54,000 units. What are the required production units? 101,000 102,000 6,000 Not...
-
Compute the following ratios for The Home Depot s year ended February 2, 2014: fixed asset turnover, days to sell, and debt- to- assets. To calculate the ratios, use the financial statements of The...
-
Using the data provided in BE19-21, determine the ending balance of the plan assets and indicate the funded status of the plan at the end of the year under U.S. GAAP. In BE19-21 Armando Hernandez...
-
Assume the following equations summarize the structure of a small open economy with a flexible exchange rate system. C = Ca + 0.85(Y - T) Ca = 200 - 8r T = 200 + 0.2Y (M/P)d = 0.25Y - 25r Ms/P =...
-
Write a function that will scale down just a part of the picture. Make someones head look smaller.
-
The Grant Corporation is a financial services firm based in Chicago, Illinois. Its revenue exceeded \($1\) billion last year, producing a net income of \($530\) million. It has just over 1,000...
-
If Wild Widgets, Inc., were an all-equity company, it would have a beta of .85. The company has a target debtequity ratio of .40. The expected return on the market portfolio is 11 percent, and...
-
Q13. A stock's historical standard deviation is 15% annualized, computed over the last 60 days. E4711 Prof. Dastidar How would the price of a call option of this stock expiring after the next 90 days...
-
1. Why do you think Hormel acquired Justins to add to the strength of its peanut and nut butter offerings and to add a product to its portfolio that appealed to a younger, more health-conscious...
-
Consider the following information for the PVI Corporation: Credit sales...............................................$17,465 Cost of goods sold................................... 12,216 Accounts...
-
Prepare a statement of cash flows for Stowe. STOWE ENTERPRISES Sales Cost af goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income 2015 Statement of Comprchensive...
-
Are any of the systolic blood pressures in Exercise A.36 for patients in their teens or eighties outliers within their group? Justify your answer.
-
A minivan and a car undergo a crash test. The mass of the minivan is 9.0 x 10 kg, and the mass of the car is 660 kg. The minivan was moving north, and the car was moving east. After the collision,...
-
8. A class of 10 students taking an exam has a power output per student of 200. W. Assume the initial temperature of the room is 20. C and that its dimensions are 6.0 m by 15 m by 3.0 m. What will...
-
A child with a mass of 22 kg runs at a horizontal velocity of 4.2 m/s [forward] and jumps onto a stationary rope swing of mass 2.6 kg. The child "sticks" on the rope swing and swings forward. (a)...
-
An airplane flies due west at an airspeed of 421 mph. The wind blows in the direction of 42 south of west at 49 mph. What is the ground speed of the airplane? What is the bearing of the airplane? 421...
-
5. A drive wheel of a car accelerating up 12 slope has the forces shown below acting on it. A 1.5KN force acting at 12 and 4KN force acting perpendicular to the surface of the road. Determine the...
-
On which side of a cash book would a cheque payment be entered?
-
Rowland Textile Inc. manufactures two products: sweatshirts and T-shirts. The manufacturing process involves two activities: cutting and sewing. Expected overhead costs and cost drivers are as...
-
Does interest rate parity imply that interest rates are the same in all countries?
-
Why might purchasing power parity fail to hold?
-
We sometimes need to find how long it will take a sum of money (or anything else) to grow to some specified amount. For example, if a company's sales are growing at a rate of 20 percent per year, how...
-
Sales quantity Sales Direct material Direct labor Manufacturing overhead Selling and Admin. Expenses The total cost of goods sold is 1,000 $66.00 per unit $12.00 $4.00 $3.00 per unit $1,800 per month...
-
Let R denote the region in the xy-plane that lies in the first quadrant and is bounded by the lines y = 1 - x, y = 2 - x, y = x + 1, and y = x - 1. Set u=x+y and v = y-x. (a) Solve for x and y in...
-
Reply to The culture established by Mr. Kelleher places importance on employee happiness, which directly influences customer satisfaction and overall organizational achievements. To maintain this...
Study smarter with the SolutionInn App