Refer to the preceding balance sheet and income statement for Greenfern Corporation for the fiscal year ended
Question:
a. Inventory turnover
b. Days sales outstanding.
c. Total asset turnover.
d. Fixed asset turnover.
e. Total debt ratio.
f. Debt-to-equity ratio.
g. Times interest earned ratio.
h. Cash coverage ratio.
Greenfern Corporation recently filed the following financial statements with the SEC.
Financial StatementsFinancial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Greenfern Corporation Income Statement for the Fiscal Year Ended July 31, 2017 $ 73,236 Net sales Cost of products sold Gross profit Selling, general, and administrative expenses Depreciation Operating income (loss) Interest expense Earning (loss) before income taxes 52,092 $ 21,144 9,333 1,060 $ 10,751 649 10,102 Income taxes 3,536 $ 6,566 Net earnings (loss) Greenfern Corporation Balance Sheet as of July 31, 2017 Liabilities and Equity: Accounts payable Accrued and other liabilities Assets: Cash and marketable securities $ 9,118 $ 6,379 5,663 Accounts receivable 7,844 Taxes payable Debt due within one year Inventory 8,900 4,821 Deferred income taxes 878 10,778 Prepaid expenses and other 2,803 Total current liabilities $27,641 $29,543 Total current assets Property, plant, and equipment, 62,467 Long-term debt 24,280 6,903 Deferred income taxes at cost Less: Accumulated depreciation Net property, plant, and 22,196 Other non current liabilities 5,608 Total liabilities Common stock $64,432 $40,271 3,667 equipment Net goodwill and other intangible assets 17,985 16,270 Retained earnings Total stockholders' equity $21,652 Total liabilities and stockholders' Total assets $86,084 $86,084 equity
Step by Step Answer:
Ratio Calculation Value a Inventory turnover 520928900 585 b Days s...View the full answer
Fundamentals of Corporate Finance
ISBN: 978-1119371403
4th edition
Authors: Robert Parrino, David S. Kidwell, Thomas Bates
Related Video
Depreciation of non-current assets is the process of allocating the cost of the asset over its useful life. The cost of the asset includes the purchase price, any additional costs incurred to bring the asset to its current condition and location, and any other costs that are directly attributable to the asset. The useful life of the asset is the period over which the asset is expected to be used by the company. To calculate the depreciation, companies use different methods such as straight-line, declining-balance, sum-of-the-years\'-digits, units-of-production, and group depreciation. The chosen method will depend on the type of asset, the company\'s accounting policies, and the accounting standards that are applicable. The straight-line method allocates an equal amount of the asset\'s cost over its useful life, while the declining-balance method calculates depreciation at a fixed rate, typically double the straight-line rate, but the amount of depreciation decreases over time. The sum-of-the-years\'-digits method is similar to the declining-balance method, but the rate of depreciation is calculated using a fraction that is based on the useful life of the asset. It\'s important to note that the depreciation expense will be recorded on the company\'s income statement and the accumulated depreciation will be recorded on the company\'s balance sheet. This will decrease the value of the asset on the balance sheet over time.
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