a. Compute these ratios for fiscal Year 5. b. Assess the changes in the short-term liquidity...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
a. Compute these ratios for fiscal Year 5. b. Assess the changes in the short-term liquidity risk of Abercrombie & Fitch between fiscal Year 3 and fiscal Year 5 and the level of that risk at the end of fiscal Year 5. c. Assess the changes in the long-term solvency risk of Abercrombie & Fitch between fiscal Year 3 and fiscal Year 5 and the level of that risk at the end of fiscal Year 5. Year 5 Year 4 Year 3 Current ratio 2.4 2.3 Quick ratio 1.7 1.6 Operating cash flow to current liabilities ratio Days accounts receivable outstanding Days inventory held Days accounts payable outstanding Net days of working capital financing needed 1.177 1.587 2 72 61 26 22 48 43 Liabilities to assets ratio 0.591 0.592 Liabilities to shareholders' equity ratio Long-term debt to long-term capital ratio Long-term debt to shareholders' equity ratio Operating cash flow to total liabilities ratio Interest coverage ratio 1.443 1.448 0.454 0.461 0.831 0.855 0.298 0.380 7.2 7.6 a. Compute these ratios for fiscal Year 5. b. Assess the changes in the short-term liquidity risk of Abercrombie & Fitch between fiscal Year 3 and fiscal Year 5 and the level of that risk at the end of fiscal Year 5. c. Assess the changes in the long-term solvency risk of Abercrombie & Fitch between fiscal Year 3 and fiscal Year 5 and the level of that risk at the end of fiscal Year 5. Year 5 Year 4 Year 3 Current ratio 2.4 2.3 Quick ratio 1.7 1.6 Operating cash flow to current liabilities ratio Days accounts receivable outstanding Days inventory held Days accounts payable outstanding Net days of working capital financing needed 1.177 1.587 2 72 61 26 22 48 43 Liabilities to assets ratio 0.591 0.592 Liabilities to shareholders' equity ratio Long-term debt to long-term capital ratio Long-term debt to shareholders' equity ratio Operating cash flow to total liabilities ratio Interest coverage ratio 1.443 1.448 0.454 0.461 0.831 0.855 0.298 0.380 7.2 7.6
Expert Answer:
Answer rating: 100% (QA)
a Current Ratio 652414 16 Quick Ratio 350 26414 09 Days Accounts Receivable 2021057 26 1225 3651225 3 days Days Inventory 104805201 248 47 36547 78 da... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-1259548185
8th edition
Authors: David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Posted Date:
Students also viewed these accounting questions
-
Abercrombie & Fitch Co. is a specialty retail company operating over 1.000 stores globally. The following disclosure note was included in recent financial statements: 4. Change in Accounting...
-
For years, the Abercrombie & Fitch clothing stores received free advertising by placing the company logo prominently on the shirts, hoodies, and other clothing they sell. A news story indicated that...
-
a) You are provided with the following information relating to V ltd Equity and liabilities 12% debentures (shs1000 at par) 16,000 10% preferences shares 6,250 Ordinary shares (Sh. 10 par) 12,500...
-
The following information is available in the books of X Bank Limited as on 31st March, 2007: Bills discounted Rebate on bills discounted (as on 1-4-2006) Discount received Details of bills...
-
Faced with a tight deadline on two major projects, you decide to hire two of the five available persons to help complete the work. They have 2, 3, 5, 3, and 2 years experience, respectively. Since...
-
To open a new store, Enid Tire Company plans to invest $320,000 in equipment expected to have a four-year useful life and no salvage value . Enid expects the new store to generate annual cash...
-
Explain the purpose of the judges charge to the jury.
-
What moral, ethical, and professional responsibilities did Guy Enright face when he was asked to turn over confidential documents to the individuals who were representing themselves as intelligence...
-
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments-Molding and Fabrication. It started, completed, and sold...
-
Jacqueline Ponce de Leon, a descendent of Juan Ponce de Leon, made a cash contribution of $1,500,000 to the City of Fountains to create and maintain a large fountain in front of City Hall in honor of...
-
A wetted wall tower is fed with water as the wall liquid and air- NH3 mixture as the central core gas. At a particular level in the tower, ammonia concentration in the bulk of the gas is 0.8 mole...
-
Discuss why company's financial outlook may be positive despite poor management of inventory. Identify various operational challenges faced as a result of poor inventory management. Critically...
-
How do the concepts of marketplaces, marketspaces and meta-markets are practices by different industries?
-
1. What can a company do to make sure it is using the best recruiting method? a. Evaluate the effectiveness of its recruitment efforts. b. Pick the recruitment method that works for other...
-
Personal Development 1. Make a list of passions, interests, school subjects you like, and hobbies that you wish co be a career. 2. Examine to see if there are any patterns in question #1. What are...
-
The following Information is available for the year ended December 31 Beginning raw materials inventory $ 12,000 Raw materials purchases 88,000 Ending raw materials inventory 11,400 Advertising...
-
A rectangular area is enclosed by 84 feet of fencing. What dimensions will maximize the fenced area, and what is the maximum area that can be enclosed? length= width= area = # feet feet square feet...
-
Write the expression in radical notation. Then evaluate the expression when the result is an integer. 23 -1/2
-
At April 1, 2017, the Food and Drug Administration is in the process of investigating allegations of false marketing claims by Hulkly Muscle Supplements. The FDA has not yet proposed a penalty...
-
Listed below are several terms and phrases associated with the accounting processing cycle. Pair each item from List A (by letter) with the item from List B that is most appropriately associated with...
-
O'Hara Associates sells golf clubs and with each sale of a full set of clubs provides complementary club-fitting services. A full set of clubs with the fitting services sells for $1,500. O'Hara...
-
Do you believe that fraud in the United States is more or less prevalent than fraud in countries outside the United States? Why?
-
How would a fraudster conceal missing cash, especially amounts of this magnitude?
-
What makes channel stuffing illegal by comparison to a car dealership that runs mega end-of-year sales?
Study smarter with the SolutionInn App