30 May ACC 205 Week 5 Assignment Student Guidance Report
Chapter 9 Exercise 3
Liquidity ratios. Edison, Stagg, and Thornton have the following financial information at the close of business on July 10:
Compute the current and quick ratios for each of the three companies. (Round calculations to two decimal places.) Which firm is the most liquid? Why?
Suppose Thornton is using FIFO for inventory valuation and Edison is using LIFO. Comment on the comparability of information between these two companies.
If all short-term notes payable are due on July 11 at 8 a.m., comment on each company’s ability to settle its obligation in a timely manner.
Chapter 9 Exercise 4
Computation and evaluation of activity ratios. The following data relate to Alaska Products Inc.:
The company is planning to borrow $300,000 via a 90-day bank loan to cover short-term operating needs.
Compute the accounts-receivable and inventory-turnover ratios for 20X5. Alaska rounds all calculations to two decimal places.
Study the ratios from part (a) and comment on the company’s ability to repay a bank loan in 90 days.
Suppose that Alaska’s major line of business involves the processing and distribution of fresh and frozen fish throughout the United States. Do you have any concerns about the company’s inventory-turnover ratio? Briefly discuss.
Chapter 9 Problem 1
Horizontal and vertical analysis. The following financial statements pertain to Waterloo Corporation:
Instructions
Prepare a horizontal analysis of the balance sheet, showing dollar and percentage changes. Round all calculations in parts (a) and (b) to two decimal places.
Prepare a vertical analysis of the income statement by relating each item to net sales.
Briefly comment on the results of your analysis.
Chapter 9 Problem 2
Ratio computation. The financial statements of the Lone Pine Company follow.
Instructions
Compute the following items for Lone Pine Company for 20X2, rounding all calculations to two decimal places when necessary:
Quick ratio
Current ratio
Inventory-turnover ratio
Accounts-receivable-turnover ratio
Return-on-assets ratio
Net-profit-margin ratio
Return-on-common-stockholders’ equity
Debt-to-total assets
Number of times that interest is earned
Dividend payout rate
Chapter 9 Problem 3
Financial statement construction via ratios. Incomplete financial statements of Lock Box Inc. are presented as follows:
Further information is the following:
Cost of goods sold is 60% of sales. All sales are on account.
The company’s beginning inventory is $5 million; inventory-turnover ratio is 4.
The debt-to-total-assets ratio is 70%.
The profit margin on sales is 6%.
The firm’s accounts-receivable-turnover ratio is 5. Receivables increased by $400,000 during the year.
Instructions
Using the preceding data, complete the income statement and the balance sheet.
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.