FINANCIAL ACCOUNTING
6th Edition
ISBN: 9781618533111
Author: DYCKMAN
Publisher: Cambridge Business Publishers
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Chapter 1, Problem 36P
a.
To determine
Compute the missing amounts for assets, liabilities, and equity for each year.
b.
To determine
Ascertain the return on equity for the year 2017 and 2018 and describe the way in which the company compares with the given median.
c.
To determine
Ascertain the debt-to-equity ratio for the year 2017 and 2018 and describe the way in which the company compares with the given median.
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Students have asked these similar questions
1. Compute the following ratios for the comparative periods (2018 and 2019). The company used 365 days in its computation for some of the ratios. Show your solution.
a. Working Capital
b. Current Ratio
c. Acid Test Ratio
d. Accounts Receivable Turnover Ratio
e. Average Collection Period
f. Inventory Turnover Ratio
g. Average Days in Inventory
h. Number of days in Operating Cycle
i. Debt to Total Assets Ratio
j. Debt to Equity Ratio
k. Times Interest Earned Ratio
l. Gross Profit Ratio
m. Profit Margin Ratio
n. Return on Assets
o. Return on Equity
p. Assets Turnover Ratio
Some recent financial statements for Smolira Golf Corporation follow.
Find the following financial ratios for Smolira Golf Corporation (use year-end figures rather than average values where appropriate): (Enter the profitability ratio answers as a percent rounded to 2 decimal places, e.g., 32.16. Round the remaining answers to 2 decimal places, e.g., 32.16.)
1.
Long-term Solvency Ratios
2020
2021
Total debt ratio
times
times
Debt-equity ratio
times
times
Equity multiplier
times
times
2.
Times interest earned
times
Cash coverage ratio
times
3.
Profitability Ratios
Profit margin
%
Return on Assets
%
Return on Equity
%
The following ratios have been computed for Pina Colada Company for 2022.
Profit margin ratio
20
%
Current ratio
2.5
:1
Times interest earned
12
times
Debt to assets ratio
24
%
Accounts receivable turnover
5
times
Use the above ratios and information from the Pina Colada Company financial statements to fill in the missing information on the financial statements.The 2022 financial statements for Pina Colada Company with missing information follows: (Include calculations)
PINA COLADA COMPANYComparative Balance SheetDecember 31,
2022
2021
Assets
Cash
$ 26,500
$ 37,100
Debt Investments
15,900
15,900
Accounts receivable (net)
53,000
Inventory
53,000
Property, plant, and equipment (net)
212,000
169,600
Total assets
Liabilities and stockholders' equity
Accounts payable
$ 15,900
$ 26,500
Short-term notes payable
37,100
31,800
Bonds payable
Enter…
Chapter 1 Solutions
FINANCIAL ACCOUNTING
Ch. 1 - Prob. 1MCCh. 1 - Prob. 2MCCh. 1 - Prob. 3MCCh. 1 - Prob. 4MCCh. 1 - Prob. 5MCCh. 1 - Prob. 1QCh. 1 - Prob. 2QCh. 1 - Prob. 3QCh. 1 - Prob. 4QCh. 1 - Prob. 5Q
Ch. 1 - Prob. 6QCh. 1 - Prob. 7QCh. 1 - Prob. 8QCh. 1 - Prob. 9QCh. 1 - Prob. 10QCh. 1 - Prob. 11QCh. 1 - Prob. 12QCh. 1 - Prob. 13QCh. 1 - Prob. 14QCh. 1 - Prob. 15QCh. 1 - Prob. 16QCh. 1 - Prob. 17QCh. 1 - Prob. 18QCh. 1 - Prob. 19MECh. 1 - Prob. 20MECh. 1 - Prob. 21MECh. 1 - Prob. 24MECh. 1 - Prob. 25MECh. 1 - Prob. 26MECh. 1 - Prob. 27ECh. 1 - Prob. 28ECh. 1 - Prob. 29ECh. 1 - Prob. 30ECh. 1 - Prob. 31ECh. 1 - Prob. 32ECh. 1 - Prob. 33ECh. 1 - Prob. 34ECh. 1 - Prob. 35ECh. 1 - Prob. 36PCh. 1 - Prob. 37PCh. 1 - Prob. 38PCh. 1 - Prob. 39PCh. 1 - Prob. 40PCh. 1 - Prob. 41PCh. 1 - Prob. 42PCh. 1 - Prob. 43PCh. 1 - Prob. 44PCh. 1 - Prob. 45PCh. 1 - Prob. 46CPCh. 1 - Prob. 47CPCh. 1 - Prob. 48CPCh. 1 - Prob. 49CPCh. 1 - Prob. 50CP
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Financial ratio analysis; Author: The Finance Storyteller;https://www.youtube.com/watch?v=MTq7HuvoGck;License: Standard Youtube License