Cornerstones of Financial Accounting
4th Edition
ISBN: 9781337690881
Author: Jay Rich, Jeff Jones
Publisher: Cengage Learning
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Chapter 8, Problem 84.6C
Comparative Analysis: Under Armour, Inc., versus Columbia Sportswear
Refer to the 10-K reports of Under Armour, Inc., and Columbia Sportswear that are available for download from the companion website at CengageBrain.com.
Required:
Compare the values and trends of these ratios when evaluating Under Armour’s and Columbia’s short-term liquidity.
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Students have asked these similar questions
Compute Liquidity and Solvency Ratios for Competing Firms
Halliburton and Schlumberger compete in the oil field services sector. Refer to the following 2018 financial data for the two companies to answer the requirements.
$ millions
Cash and equivalents
Short-term investments
Accounts receivable
Current assets
Current liabilities
Total liabilities
Total equity
Earnings before interest and tax (EBIT)
Interest expense, gross
a. Compute the following measures for both companies.
Note: Round your final answers to two decimal places (for example, enter 6.78 for 6.77555).
1. Current ratio
2. Quick ratio
3. Times interest earned
4. Liabilities-to-equity
HAL SLB
$2,008 $1,433
1,344
5,077 7,645
11,151 15,731
4,658 13,081
16,438 33,921
9,258 35,488
2,393 2,959
554
537
HAL
2.28 x
1.5 x
4.54 x
1.69 *
SLB
1.114 x
0.79 x
5.79 *
0.91 x
b. Which company appears more liquid? HAL
c. Which company appears more solvent? SLB =
Question 1
Mabel is a potter and sells her pottery at stalls that she rents in four tourist information centres
across the south of England.
Extracts from her financial statements for the years ended 31 December 2021 and 2020 are
shown below.
Statement of profit or loss for the year ended 31 December:
2021
28,900
|(16,500)
12,400
(3,800)
8,600
|(4,000)
4,600
2020
Revenue
27,200
(14,000)
13,200
(3,600)
9,600
Cost of sales
Gross profit
Operating expenses
Operating profit
Non-operating expenses
Net profit
9,600
Statement of financial position as at 31 December:
2021
Non-current assets
Current assets
Total assets
22,660
4,360
27,020
2020
20,920
3,750
24,670
Equity
Non-current liabilities
Current liabilities
Equity and liabilities
20,940
3,000
3,080
27,020
16,340
3,500
4,830
24,670
The following information is also relevant:
In July 2021 the rent on one of Mabel's stalls was increased significantly for the third time in
three years so she decided not to renew the annual contract. She sold…
Based on the Balance sheet calculate:
1.Current Ratio 2. Acid Test or Quick Ratio 3. Cash Ratio 4. Debt Ratio 5. Debt to Equity Ratio 6. Asset Turnover Ratio 7. Receivable Turnover Ratio and 8. Day Sales to Inventory Ratio.
Based on the calculations presented above interpret the overall performance of BMW AG Group’s and the line items it must stay focused upon. Discuss its overall financial status having calculated the ratios across the years, considering the impact of Covid-19 while support decision-making related to its future growth and profitability
Chapter 8 Solutions
Cornerstones of Financial Accounting
Ch. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - Prob. 3DQCh. 8 - Prob. 4DQCh. 8 - Prob. 5DQCh. 8 - Prob. 6DQCh. 8 - Prob. 7DQCh. 8 - Prob. 8DQCh. 8 - Prob. 9DQCh. 8 - Prob. 10DQ
Ch. 8 - Prob. 11DQCh. 8 - Prob. 12DQCh. 8 - Prob. 13DQCh. 8 - Prob. 14DQCh. 8 - Prob. 15DQCh. 8 - Prob. 16DQCh. 8 - Prob. 17DQCh. 8 - Prob. 18DQCh. 8 - Prob. 19DQCh. 8 - Prob. 20DQCh. 8 - Prob. 1MCQCh. 8 - Prob. 2MCQCh. 8 - Prob. 3MCQCh. 8 - Refer to the information for Kinsella Seed above....Ch. 8 - Prob. 5MCQCh. 8 - Prob. 6MCQCh. 8 - Prob. 7MCQCh. 8 - Prob. 8MCQCh. 8 - Prob. 9MCQCh. 8 - When a credit is made to federal income taxes...Ch. 8 - Prob. 11MCQCh. 8 - Prob. 12MCQCh. 8 - Prob. 13MCQCh. 8 - Prob. 14MCQCh. 8 - Prob. 15MCQCh. 8 - Prob. 16MCQCh. 8 - Prob. 17MCQCh. 8 - Which of the following transactions would cause...Ch. 8 - Issuing Notes Payable On June 30, Carmean Inc....Ch. 8 - Notes Payable Rogers Machinery Company borrowed...Ch. 8 - Prob. 21CECh. 8 - Accrued Interest On March 1, the Garner...Ch. 8 - Prob. 23CECh. 8 - Prob. 24CECh. 8 - Sales Tax Cobb Baseball Bats sold 45 bats for $50...Ch. 8 - Payroll Taxes Hernandez Builders has a gross...Ch. 8 - Prob. 27CECh. 8 - Prob. 28CECh. 8 - Unearned Sales Revenue Brand Landscaping offers a...Ch. 8 - Prob. 30CECh. 8 - Prob. 31CECh. 8 - Prob. 32CECh. 8 - Liquidity Ratios NWAs financial statements contain...Ch. 8 - Prob. 34CECh. 8 - Accounts Payable On May 18, Stanton Electronics...Ch. 8 - Accounts and Notes Payable On February 15, Barbour...Ch. 8 - Issuing Notes Payable On September 30, Bello...Ch. 8 - Notes Payable Renchen Company, which manufactures...Ch. 8 - Accrued Interest On July 1, Brimley Company issued...Ch. 8 - Accrued Interest On May 1, the Garnett Corporation...Ch. 8 - Accrued Property Taxes Annual property taxes...Ch. 8 - Accrued Income Taxes Nolan Inc. had taxable income...Ch. 8 - Prob. 43BECh. 8 - Accrued Wages A company employs a part-time staff...Ch. 8 - Prob. 45BECh. 8 - Prob. 46BECh. 8 - Prob. 47BECh. 8 - Prob. 48BECh. 8 - Payroll Taxes Sids Grocery Store has 100 employees...Ch. 8 - Prob. 50BECh. 8 - Payroll Taxes Its the Tooth Dental works to...Ch. 8 - Unearned Sales Revenue Curtiss Carpet Cleaning...Ch. 8 - Unearned Rent Revenue Mannion Property Management...Ch. 8 - Contingent Liabilities Many companies provide...Ch. 8 - Prob. 55BECh. 8 - Prob. 56BECh. 8 - Prob. 57BECh. 8 - Liquidity Ratios JRLs financial statements contain...Ch. 8 - Prob. 59BECh. 8 - Prob. 60ECh. 8 - Recording Various Liabilities Glenview Hardware...Ch. 8 - Recording Various Liabilities Plymouth Electronics...Ch. 8 - Reporting Liabilities Morton Electronics had the...Ch. 8 - Accounts Payable Sleek Ride, a company providing...Ch. 8 - Accrued Liabilities Charger Inc. had the following...Ch. 8 - Accrued Liabilities Thornwood Tile had the...Ch. 8 - Prob. 67ECh. 8 - Payroll Accounting and Discussion of Labor Costs...Ch. 8 - Unearned Revenue Jennifers Landscaping Services...Ch. 8 - Prob. 70ECh. 8 - Warranties Eds Athletics sells bicycles and other...Ch. 8 - Ratio Analysis Intel Corporation provided the...Ch. 8 - Payable Transactions Richmond Company engaged in...Ch. 8 - Payroll Accounting Jet Enterprises has the...Ch. 8 - Note Payable and Accrued Interest Fairbome Company...Ch. 8 - Prob. 76APSACh. 8 - Prob. 77APSACh. 8 - Prob. 78APSACh. 8 - Prob. 79APSACh. 8 - Ratio Analysis Consider the following information...Ch. 8 - Payable Transactions Daniels Company engaged in...Ch. 8 - Payroll Accounting McLaughlin Manufacturing has...Ch. 8 - Note Payable and Accrued Interest Ellsworth...Ch. 8 - Prob. 76BPSBCh. 8 - Prob. 77BPSBCh. 8 - Prob. 78BPSBCh. 8 - Prob. 79BPSBCh. 8 - Ratio Analysis Consider the following information...Ch. 8 - Prob. 81.1CCh. 8 - Prob. 81.2CCh. 8 - Prob. 81.3CCh. 8 - Prob. 82.1CCh. 8 - Prob. 82.2CCh. 8 - Prob. 82.3CCh. 8 - Prob. 83.1CCh. 8 - Prob. 83.2CCh. 8 - Prob. 83.3CCh. 8 - Prob. 83.4CCh. 8 - Prob. 83.5CCh. 8 - Prob. 83.6CCh. 8 - Prob. 83.7CCh. 8 - Prob. 83.8CCh. 8 - Prob. 83.9CCh. 8 - Prob. 84.1CCh. 8 - Prob. 84.2CCh. 8 - Prob. 84.3CCh. 8 - Prob. 84.4CCh. 8 - Prob. 84.5CCh. 8 - Comparative Analysis: Under Armour, Inc., versus...Ch. 8 - Prob. 84.7CCh. 8 - Prob. 84.8CCh. 8 - Prob. 85.1CCh. 8 - Prob. 85.2CCh. 8 - Prob. 85.3C
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