ATC 9 4 (Algo) Business Applications Case Performing ratio analysis using real world data LO 9 7 Tools For All (TFA) is a global supplier of tools and related accessories The following data were taken from the companys 2018 annual report Dollar amounts are in millions Fiscal Years Ending December 31, 2018 December 31, 2017 Current assets $4,596 4 $4,529 0 Current liabilities 4,023 8 4,367 1 Total assets 19,131 0 19,269 3 Total liabilities 11,631 0 10,596 2 Required a Compute TFAs current ratios for 2018 and 2017 (Round your answers to 2 decimal places ) b Compute TFAs debt to assets ratios for 2018 and 2017 (Round your answers to 2 decimal places ) c Based on the ratios computed in Requirements a and b , did TFAs liquidity get better or worse from 2017 to 2018 d Based on the ratios computed in Requirements a and b , did TFAs solvency get better or worse from 2017 to 2018

The Answer is in the image, click to view ...

Question: ATC 9-4 (Algo) Business Applications Case: Performing ratio analysis using real-world data LO 9-7 Tools For All (TFA) is a global supplier of tools and

ATC 9-4 (Algo) Business Applications Case: Performing ratio analysis using real-world data LO 9-7

Tools For All (TFA) is a global supplier of tools and related accessories. The following data were taken from the companys 2018 annual report. Dollar amounts are in millions.

	Fiscal Years Ending
	December 31, 2018	December 31, 2017
Current assets	$4,596.4	$4,529.0
Current liabilities	4,023.8	4,367.1
Total assets	19,131.0	19,269.3
Total liabilities	11,631.0	10,596.2

Required

a. Compute TFAs current ratios for 2018 and 2017. (Round your answers to 2 decimal places.)

b. Compute TFAs debt-to-assets ratios for 2018 and 2017. (Round your answers to 2 decimal places.)

c. Based on the ratios computed in Requirements a and b, did TFAs liquidity get better or worse from 2017 to 2018?

d. Based on the ratios computed in Requirements a and b, did TFAs solvency get better or worse from 2017 to 2018?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

ATC 7-4 (Algo) Business Applications Case: Performing ratio analysis using real-world data LO 7-7 The following data were taken from The Candy Corporation's 2018 annual report. All dollar amounts are...

Help on Financial Statement analysis homework, need a perfect solution to improve grade UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10- K (Mark One) 3 ANNUAL REPORT...

Please help, this is actually due today and the person who said they would answer this question that was initially due last night. Thank you for the help if possible. I need help with putting the...

Hello, I am needing help on this assignment please ASAP so I can study it as I have a test on Thursday over this and many other things. let me know if there are any questions. Thank you. UNITED...

According to the Apple Inc. 2017 Annual Report, answer the following questions: The company 2017 net income is higher than the net income in 2016, Why did net income increase? What effective income...

View the 2013 Annual Report for the Ford Motor Company, a Fortune 50 company, linked here as well as on the Course Information page. Using this report, answer the following questions: Does the...

Section A. 5. One key difference between traditional economics and behavioral economics is a) b) c) d) A. Traditional economics does not argue that markets are efficient while behavioral economics...

Adidas AG (Adidas ) is engaged in the design, development, manufacture and marketing of a broad range of athletic and sports lifestyle products such as footwear, apparel, hardware (bags and balls)...

i. Explain all the questions well. 1). The market demand function for a good is given by Q = D(p) = 800 50p. For each firm that produces the good the total cost function is TC(Q) = 4Q+( Q2/2) ....

Exercise one. 1. Let the market demand curve be P=1000 - 10Q. Assume the market is controlled by a monopolist. Let fixed cost be $10,000 and Marginal Costs (MC)=20Q. a) What is the profit maximizing...

On January 1 2019, ABC Company issued $1,400,000 6% bonds with 14,000 detachable warrants at 115. Interest on the bonds is paid annually on December 31 each year. Each warrant entitled the holder to...

What are the different Branches of physics?

Question 2 4 ( 1 point ) Soved Marbles Inc. is an accrual basis taxpayer that sells furniture. On December 1 5 , 2 0 2 4 , a customer purchased a sofa that was in stock. However, the customer wanted...

You work at an electronics retailer and you re evaluating the inventory management of your monitors. On average, the electronics store sells about 3 5 monitors each month. Each time you place an...

If your organization were contemplating using a team-based approach to increase productivity and reduce cost, what training issues would the organization be likely to face? How could the organization...

Imagine that you are an HRD professional who has just finished conducting a training program for a group of supervisors at a manufacturing plant. When you ask if there are any questions, one of the...

Think about the last time you had a problem with your own performance, either on the job or in one of your classes. Using the nine-step performance analysis model from Fournies, try to identify the...