Question: Old MathJax webview please do it correctly will upvote here below income statement and above is the question with different parts c) What is the

Old MathJax webview

Old MathJax webview please do it correctly will upvote here below income

please do it correctly will upvote

statement and above is the question with different parts c) What is

the firm's days' payable outstanding? (4 marks) d) What is the firm's

here below income statement and above is the question with different parts

c) What is the firm's days' payable outstanding? (4 marks) d) What is the firm's operating cycle? How does it compare to the industry average of 72 days? (4 marks) e) What is the firm's cash conversion cycle? How does it compare to the industry average of 42 days? (4 marks) Question 5 (25 marks) The following information for Kinnis, Inc., a retail furniture and design firm, is presented at December 31, 2020 and 2019: December 31 Assets 2020 2019 Current assets: Cash S 42,000 Accounts receivable 480.000 $ 54,000 345,000 4,950,000 Inventory Prepaid expenses Total current assets 79,000 5,010,000 84.000 5,616,000 1.591.000 $7.207.000 5,428,000 1,193,000 $6,621,000 Building and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: $ 628.000 625,000 Accounts payable Bank loan payable Other accrued payables Total current liabilities Long-term debt Total liabilities $ 705,000 679,000 215.000 1,599,000 1.729.000 315.000 1,568,000 1.791,000 3,328,000 3,359.000 Stockholders' equity: Common stock Retained earnings Total stockholders' equity 1,307.000 2.572.000 3.879.000 1,305,000 1,957,000 3.262.000 Total liabilities and stockholders' equity $7.207.000 $6.621.000 There were 100,000 shares of common stock outstanding at the end of both years. The income tax rate is 35%. Interest expense totaled S139,000 for 2020 and $158,000 for 2019. The market price per share was $110 at the end of 2019 and $134 at the end of 2020. Net income was $615,000 for 2020 and $739,000 in 2019. Net sales totaled $4,568,000 and $3,253,000 for 2020 and 2019, respectively a) Calculate the following for 2020 and 2019: (4 x 5 marks each = 20 marks) 1. Earnings per share 2. Price-earnings ratio 3. Return on total assets 4. Return on common stockholders' equity b) Comment on any trends apparent in the ratios (5 marks). c) What is the firm's days' payable outstanding? (4 marks) d) What is the firm's operating cycle? How does it compare to the industry average of 72 days? (4 marks) e) What is the firm's cash conversion cycle? How does it compare to the industry average of 42 days? (4 marks) Question 5 (25 marks) The following information for Kinnis, Inc., a retail furniture and design firm, is presented at December 31, 2020 and 2019: December 31 Assets 2020 2019 Current assets: Cash $ 54,000 Accounts receivable S 42,000 480,000 5,010,000 84,000 5,616,000 1,591,000 $7.207.000 345,000 4,950,000 79,000 5,428,000 1,193,000 $6.621.000 Inventory Prepaid expenses Total current assets Building and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Bank loan payable Other accrued payables Total current liabilities Long-term debt Total liabilities $ 705.000 679,000 215.000 1,599,000 1.729.000 $ 628,000 625,000 315.000 1,568,000 1,791,000 3.328,000 3,359.000 Stockholders' equity: Common stock 1,305,000 Retained earnings Total stockholders' equity 1,307.000 2.572,000 3,879,000 1.957.000 3.262.000

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