The following data have been extracted from the financial statements of two competitors in the retail industry:
Question:
The following data have been extracted from the financial statements of two competitors in the retail industry:
Required
(a) Based on the information in these financial statements, calculate the following ratios for each entity for 2017:
1. Current cash debt coverage.
2. Cash return on sales ratio.
3. Cash debt coverage.
(b) What conclusions concerning the management of cash can be drawn from these data?
Transcribed Image Text:
Company A Company B Sales revenue Net cash provided by operations Current liabilities Total liabilities Sales revenue Net cash provided by operations Current liabilities Total liabilities 2017 $'000 505754 113 393 112907 124497 2017 $'000 744 285 131615 188 896 387 638 2016 $'000 461 205 101 126 130 769 149 139 2016 $'000 693 007 71926 162 582 334 298
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Solution a 1 Current cash debt coverage AB 123087 2 Cash return on sales r...View the full answer
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Related Book For
Financial Accounting Reporting Analysis And Decision Making
ISBN: 9780730313748
5th Edition
Authors: Shirley Carlon, Rosina Mladenovic Mcalpine, Chrisann Palm, Lorena Mitrione, Ngaire Kirk, Lily Wong
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