Question: how to identify the commonly used criteria for determining acceptability of investment proposals (especially on capital budgets) given the following data? ARLA FONTERRA CURRENT RATIO

how to identify the commonly used criteria for determining acceptability of investment proposals (especially on capital budgets) given the following data?

ARLA FONTERRA

CURRENT RATIO 1.24 1.16

QUICK RATIO/ ACID TEST RATIO 0.77 0.59

NET WORKING CAPITAL 555.00 832.00

ACCOUNTS RECEIVABLE TURNOVER 11.21 8.78

AGE OF RECEIVABLES 32.56 41.59

INVENTORY TURNOVER 7.69 6.28

AGE OF INVENTORY 47.48 58.14

GROSS PROFIT MARGIN RATIO 0.21 0.15

NET PROFIT MARGIN RATIO 0.03 -0.01

OPERATING MARGIN RATIO 0.04 0.01

RETURN ON TOTAL ASSET 0.06 0.01

RETURN ON EQUITY 0.13 -0.08

TIMES ITEREST EARNED 5.88 0.60

DEBT RATIO 0.65 0.65

EQUITY RATIO 0.35 0.35

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!

(Q6 - Q9) Jet Airways Jet Airways flight from Philadelphia to Boston has 350 seats. The high fare on the flight is $780 and the restricted/low fare is $500. There is ample demand for the low fare...

How toidentify the commonly used criteria for determining acceptability of investment proposals (especially on capital budgets) using the following data? ARLA FONTERRA CURRENT RATIO 1.24 1.16 QUICK...

I need problem E14-11 solved on page 714 of the document attached. JWCL165_c14_674-725.qxd 8/16/09 7:46 AM Page 674 14 Financial Statement Analysis Chapter STUDY OBJECTIVES After studying this...

Hello, I need help with exercise E14-3 in the attached file. (a) Prepare a horizontal analysis of the balance sheet data for Conard Corporation using 2011 as a base. (b) Prepare a vertical analysis...

Hi, I was wondering if you can help me with some financial accounting work? I need help in computing the numbers for Forecast Values for 2024 for Humana using the information below. I have a sample...

Q1-Explain how the EBIT Chart works (inputs determining the outputs-the two lines on the chart Case Leahy Bread Company (LBC) in Cohen Finance Workbook, page 111( a 'caselette') SEE THE IS/BS MODEL &...

When comparing various divisions within a company, describe what problems can arise from evaluating divisions that have different accounting methods, as described in Chapter 11 of your text. Cite...

Read pages 39-49 of the Alphabet Inc (Google; GOOG) DEF 14A SEC filing. This is the mandatory disclosure regarding executive compensation. Answer each of the questions, below. Each answer should be...

Please show your work. A B C D E F G H J K L M N o F 1 Q1: 2 An important task in performing business valuations is normalizing the historical financial statements. (a). Using the information...

Prepare the financial analysis to support your decision between bankruptcy,voluntary reorganization,and Chapter11reorganization.It must be complete and prepared in a professional level,with the...

PLEASE COMPLETE NO LATER THAN 11/04 @8am Each question(1,2,& 3) must be a minimum of 200 words. Please EXPLAIN answers in FULL detail and make answers knowledgeable based off the attached reading,...

Selected financial information for Dulock Company for 2012 follows. Required Assuming that the merchandise inventory buildup was relatively constant, how many times did the merchandise inventory turn...

Pfeifer Corporation acquired an 80% interest in Stern Corporation several years ago when the book values and fair values of Stern's assets and liabilities were equal. At the time of acquisition, the...

Which of these would likely present some issue of illegality? i . Dubious refused to hire anyone younger than thirty - five years old. ii . Alice Ace, senior officer in a publicly traded corporation,...

Wilma Companys T account for long-term available-for-sale investments at the end of 2014 follows. In addition, Wilmas income statement shows a loss on the sale of investments of $13,000. Compute the...

Analyze each transaction listed in the table that follows and place X's is the appropriate columns to indicate the transaction's classification and its effect on cash flows using the indirectmethod....

Analyze each transaction listed in the table that follows and place X's in the appropriate columns to indicate the transaction's classification and its effect on cash flows using the indirectmethod....

Answer the following questions, assuming that the related divorce agreements were executed during 2014. a. Under a divorce agreement, Joan is required to pay her ex-husband, Bill, $700 a month until...

Hall Company's beginning inventory and purchases during the fiscal year ended December 31, 20--, were as follows: There are 1,100 units of inventory on hand on December 31. REQUIRED 1. Calculate the...

1. Buying groceries at the supermarket. 2. Selling a house 3. Getting married out of community of property. 4. Starting a new cellphone contract. 5. Arranging monthly instalments to pay for the car...

1. Too understand personal motivation.

3. Imagine three people you know relatively well. Consider which of the five positions they often use in the conversations they engage in with other people.

4. Select a person you want to model. Choose what you want to model in this person, such as relationship skills. a. Observe what he does and how he does this in relationships with others. b. Try to...