Presented below are liquidity and solvency ratios for Carmelo Industries, along with industry averages: Ratio Return...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Presented below are liquidity and solvency ratios for Carmelo Industries, along with industry averages: Ratio Return on Assets Current ratio Profit Margin Debt to total assets Inventory turnover Receivables turnover Times interest earned 2019 2018 Industry Average 8.0% 7.0% 9.0% 0.7:1 0.8:1 14:1 4.8% 4.2% 5.0% 55% 48% 35% 7.0 11.0 15.2 6.2 8.1 10.4 2.0 4.8 8.5 REQUIRED: Analyze the company's liquidity, solvency, and profitability using the information presented. Present a conclusion on the liquidity, solvency and profitability identifying the ratios use for each to supported by your analysis Presented below are liquidity and solvency ratios for Carmelo Industries, along with industry averages: Ratio Return on Assets Current ratio Profit Margin Debt to total assets Inventory turnover Receivables turnover Times interest earned 2019 2018 Industry Average 8.0% 7.0% 9.0% 0.7:1 0.8:1 14:1 4.8% 4.2% 5.0% 55% 48% 35% 7.0 11.0 15.2 6.2 8.1 10.4 2.0 4.8 8.5 REQUIRED: Analyze the company's liquidity, solvency, and profitability using the information presented. Present a conclusion on the liquidity, solvency and profitability identifying the ratios use for each to supported by your analysis
Expert Answer:
Answer rating: 100% (QA)
Based on the provided ratios for Carmelo Industries and the industry averages we can analyze the com... View the full answer
Related Book For
Financial Statement Analysis
ISBN: 978-0078110962
11th edition
Authors: K. R. Subramanyam, John Wild
Posted Date:
Students also viewed these accounting questions
-
You are a CPA student working in the accounting department of Reynolds Liquor Distributors Ltd. (RLDL) for the year ended December 31, 2019. Your role requires you to prepare and analyze the annual...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
1. Internal controls are concerned with A) only manual systems of accounting. B) the extent of government regulations. safeguarding assets. C) D) preparing income tax returns. 2. Having one person...
-
Suppose your elasticity of demand for your parking lot spaces is 2, and price is $8 per day. If your MC is zero, and your capacity is 80% full at 9 A.M. over the last month, are you optimizing?
-
Appellant Jermaine Porter was adjudicated delinquent for being a minor in possession of a handgun and was committed to the Department of Youth Services. On appeal, Porter challenges the sufficiency...
-
FRAUD PREVENTION AND DETERRENCE IN ACTION Assume the following facts: thirty-day collection period. The invoice is used to post-sales to the accounting system. Checks are received in the mailroom and...
-
Belmain Co. expects to maintain the same inventories at the end of 2014 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of...
-
I hired a carpenter and an apprentice to do some work at my business. They worked two days. On the first day I was billed $210 for 11 hours of work by the main carpenter and for 7 hours of work by...
-
At age 25, someone sets up an IRA (individual retirement account) with an APR of 5%. At the end of each month he deposits $60 in the account. How much will the IRA contain when he retires at age 65?...
-
The Corona pandemic affected organizations , consequently the human resources in these organizations, which led to changes in human resources plans. As a human resources specialist, please write a...
-
A crane lifts the 14000 kg steel hull of a ship out of the water. Part A Determine the tension in the crane's cable when the hull is submerged in the water. Express your answer using two significant...
-
Henry Incorporated manufactures a high volume of identical flashlights called the Illumin-8. The company reported the following for the month of August: Physical Units Beginning work in process,...
-
Consider an infinitely repeated Cournot duopoly with discount factor = 0.9, unit costs of c = 0, and an inverse demand function p(Q) = 10 - Q. Firm 1 is more powerful than firm 2 such that in any...
-
Estimates for the current year were as follows: Total manufacturing overhead: $300,000 Total machine hours: 3,000 Total labor hours: 6,000 Total labor cost: $120,000 The Victor's Valves (a customer!)...
-
Assume a companys beginning work in process consists of 20,000 units, 60% complete. Materials are added at the beginning of the process. During the month, 90,000 units are transferred in. The ending...
-
3.52 Find the detector current id in the unbalanced bridge in Fig. P3.52 if the voltage drop across the detector is negligible.
-
If your school has a subscription to the FASB Codification, go to aaahq.org/ ascLogin.cfm to log in and prepare responses to the following. (a) What is the stock dividend? (b) What is a stock split?...
-
What factors give rise to the superiority of accrual accounting over cash accounting? Explain.
-
Express the following income statement information in common-size percents and assess whether this companys situation is favorable orunfavorable. HARBISON CORPORATION Comparative Income Statement For...
-
An ability to estimate future returns (when right of return exists) is an important consideration in revenue recognition. Identify factors impairing the ability to predict future returns.
-
A probability experiment consists of rolling a single fair die. (a) Identify the outcomes of the probability experiment. (b) Determine the sample space. (c) Define the event E = roll an even number....
-
A pair of fair dice is rolled. Fair die are die where each outcome is equally likely. (a) Compute the probability of rolling a seven. (b) Compute the probability of rolling snake eyes; that is,...
-
Our number system consists of the digits 0, 1, 2, 3, 4, 5, 6, 7, 8, and 9. Because we do not write numbers such as 12 as 012, the first significant digit in any number must be 1, 2, 3, 4, 5, 6, 7, 8,...
Study smarter with the SolutionInn App