Question: Each Answer must be At least 100 Words; With citations every question. (3-5) How might (a) seasonal factors and (b) different growth rates distort a

Each Answer must be At least 100 Words; With citations every question.

(3-5) How might (a) seasonal factors and (b) different growth rates distort a comparative ratio analysis? Give some examples. How might these problems be alleviated?

(3-6) Why is it sometimes misleading to compare a companys financial ratios with those of other firms that operate in the same industry?

(3-1) Greene Sisters has a DSO of 20 days. The companys average daily sales are $20,000. What is the level of its accounts receivable? Assume there are 365 days in a year.

(3-2) Vigo Vacations has $200 million in total assets, $5 million in notes payable, and $25 million in long-term debt. What is the debt ratio?

(3-3) Winston Watchs stock price is $75 per share. Winston has $10 billion in total assets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and$6 billion in common equity. It has 800 million shares of common stock outstanding.What is Winstons market/book ratio?

(3-7) Ace Industries has current assets equal to $3 million. The companys current ratio is 1.5, and its quick ratio is 1.0. What is the firms level of current liabilities? What is the firms level of inventories?

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 Finance Questions!