Geodesic Domes, Inc., builds environmentally sensitive structures. The company's 2017 revenues totaled $2,800 million. At December 31,
Question:
Requirements
1. Describe each of Geodesic Domes, Inc.'s liabilities and state how the liability arose.
2. What were the company's total assets at December 31, 2017? Evaluate the company's leverage and debt ratios at the end of 2016 and 2017. Did the company improve, deteriorate, or remain about the same over the year?
3. Accounts payable at the end of 2015 was $190 million. Calculate accounts payable turnover as a ratio and days payable outstanding (DPO) for 2016 and 2017. Calculate current ratios for 2016 and 2017 as well. Evaluate whether the company improved or deteriorated from the standpoint of ability to cover accounts payable and current liabilities over the year.
Step by Step Answer:
Financial Accounting
ISBN: 978-0134564142
6th Canadian edition
Authors: Walter Jr. Harrison, Charles T. Horngren, C. William Thomas, Greg Berberich, Catherine Seguin