Ch: Analyzing Financial Statements The current year financial statement for sand and Juffair companies are presented...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Ch: Analyzing Financial Statements The current year financial statement for sand and Juffair companies are presented below. Balance sheet at 31 Dec 2019 Item Cash Account receivable (net) Inventory Property & equipment (net) Other assets Total assets Current liabilities Long-term debt (interest rate: 10%) Capital stock ($10 par value) Additional paid-in capital Retained earnings Total liabilities and stockholders' equity Income statement at 31 Dec 2019 item Sales revenue (1/3 on credit) (-) Cost of goods sold (-) Operating expenses Net income Other data item Per share stock price at end of current year Average income tax rate Dividends declared and paid in current year Sand 45000 45000 95000 160000 90000 435000 95000 75000 155000 40000 70000 435000 Sand 440000 230000 159000 51000 Sand 23 30% 34000 Juffair 22000 35000 45000 415000 320000 837000 65000 65000 522000 110000 75000 837000 Juffair 800000 399000 315000 86000 Juffair 25 30% 153000 Both companies are in the fish catching and manufacturing business. Both have been in business approximately 10 years, and each has had steady growth. The management of each has a different viewpoint in many respects. Sand company is more conservative, and as its president has said, "We avoid what we consider to be undue risk". Neither company is publicly held. Required: 1. Calculate the ratio analysis of each company. Ch: Analyzing Financial Statements The current year financial statement for sand and Juffair companies are presented below. Balance sheet at 31 Dec 2019 Item Cash Account receivable (net) Inventory Property & equipment (net) Other assets Total assets Current liabilities Long-term debt (interest rate: 10%) Capital stock ($10 par value) Additional paid-in capital Retained earnings Total liabilities and stockholders' equity Income statement at 31 Dec 2019 item Sales revenue (1/3 on credit) (-) Cost of goods sold (-) Operating expenses Net income Other data item Per share stock price at end of current year Average income tax rate Dividends declared and paid in current year Sand 45000 45000 95000 160000 90000 435000 95000 75000 155000 40000 70000 435000 Sand 440000 230000 159000 51000 Sand 23 30% 34000 Juffair 22000 35000 45000 415000 320000 837000 65000 65000 522000 110000 75000 837000 Juffair 800000 399000 315000 86000 Juffair 25 30% 153000 Both companies are in the fish catching and manufacturing business. Both have been in business approximately 10 years, and each has had steady growth. The management of each has a different viewpoint in many respects. Sand company is more conservative, and as its president has said, "We avoid what we consider to be undue risk". Neither company is publicly held. Required: 1. Calculate the ratio analysis of each company.
Expert Answer:
Answer rating: 100% (QA)
Based on the information provided in the financial statements we can calculate several key financial ratios for both Sand and Juffair companies Here are few common ratios that can be calculated 1 Curr... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
Students also viewed these accounting questions
-
On a cold winter day, the atmospheric temperature is - (on Celsius scale) which is below 0C. A cylindrical drum of height h made of a bad conductor is completely filled with water at 0C and is kept...
-
The Renton Tractor Company was formed at the start of 2015 and produces a small garden tractor. The selling price is $4,800, variable production costs are $2,000 per unit, fixed production costs are...
-
How do problems for the wave equation and the heat equation differ regarding additional conditions?
-
Bernardino Santos-Rodiguez was piloting a boat owned by his friend, Raul Viera-Torres, in waters near Guayama, Puerto Rico. The boat was equipped with a hydraulic steering system manufactured by...
-
Wonderful Not only did our salespeople do a good job in meeting the sales budget this year, but our production people did a good job in controlling costs as well, said Kim Clark, president of Martell...
-
When did 3D printing start in your selected industry? How was it first used in this industry?
-
P6. (6 pts) Consider a generator of a CRC scheme 1010011 (i.e., x6+x++x+1). The message is 00110011 10001010. Answer the following questions. a. Compute the CRC bits for this packet (ignoring all...
-
5)Calculate the APV for the following project in Guatemala. The project will have 10-year life, and cost $10 million. If you finance with 100% equity, the US equity will have a beta of 1.3, but you...
-
Why would the diversity of languages spoken by persons within the healthcare workforce create teamwork problems among healthcare staff? What language etiquette could ease interpersonal and...
-
What are the primary inventory control policies, and how do they balance the costs of holding inventory and stockouts? Compare and contrast the Just-In-Time (JIT), Economic Order Quantity (EOQ), and...
-
Why is Giacomo Salvetti, the CEO of Cafes Monte Bianco, considering manufacturing private label coffee? What are the various factors in favor of having a private label brand versus a premium brand,...
-
Why should we implement industry 4.0 solutions and how does this concept help our businesses? (Provide examples)
-
1. Which financial and quality monitoring and control systems are used in a workplace (simulated workplace)? 2. what are 5 elements of a project management plan? 3. what is the role of 3 project...
-
Clinton Ltd is tendering for two contracts. Details of the contracts are shown below. Contract Contract 1 Units required 800 Unit price (customer expected) 15.00 You have examined the contracts and...
-
Transform the while loop from the previous exercise into an equivalent for loop (make sure it produces the same output).
-
Access the investor relations or corporate information section of the websites of American Airlines (www.aa.com), Intel (www.intel.com), and Disney (disney.go.com). Study the business strategies of...
-
Identify the types of firm-specific factors that increase a firms nondiversifiable risk (systematic risk). Identify the types of firm-specific factors that increase a firms diversifiable risk...
-
Go to the website of the International Accounting Standards Board (www.ifrs.org). Search for the International Financial Reporting Standards (IFRS) summaries. Identify the most recently issued...
-
Should morality, in and of itself, be considered a sufficient basis for defining particular conduct as criminal?
-
What are the chief distinctions between the civil and criminal law? Why do the criminal and civil law sometimes overlap?
-
What means of punishment for criminal offenses exist in your state? Is capital punishment available for persons convicted of first-degree murder? Which punishments, if any, do you think are most...
Study smarter with the SolutionInn App