Do not get the years mixed up in the following. Note that the prior year is...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Do not get the years mixed up in the following. Note that the prior year is recorded first, and the current year, 2020 second. Adelaide Magpie International Corporation Balance Sheet as at December 31, 2019 and 2020 2019 Prior Year Current Yr 2020 Current assets $ 18,000 7,000 110,000 146,000 4,000 $ 285,000 $166,000 $ 94,000 8,000 21,000 35,000 8,000 Cash Short-term investments Accounts receivable, net Inventory Prepaid expenses Total current assets Property, plant, and equipment, net 233,000 55,000 Other assets 10,000 $528,000 12,000 $233,000 Total assets Current liabilities Short-term borrowings Accounts payable Total current liabilities $ 18,000 20,000 $38,000 $ 3,000 22,000 $25,000 Non-current debt 347,000 $385,000 43,000 $68,000 Total liabilities Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities & s/holders' equity $528,000 $110,000 33,000 $143,000 $135,000 30,000 $165,000 $233,000 Additional information (for 2020): Net income from operations 2020 4,100 $3,650 $1,500 $266,000 $450,000 (Don't get the years mixed up noted above) Interest expense Depreciation expense Cost of goods sold Net sales (all on credit) Industry benchmarks: (What the average ratios are for companies in this industry) acid test 1.00 gross profit %: 70% inventory turnover 4.10 times interest earned 17 current ratio 1.50 debt ratio .62 receivable turnover 30.1 Required: Using financial statement ratios and other information, analyse the performance of Adelaide for 2020. Write a report in good form. (In other words, "How is the company performing?") (Don't mix dn the years on the statement.) Do not get the years mixed up in the following. Note that the prior year is recorded first, and the current year, 2020 second. Adelaide Magpie International Corporation Balance Sheet as at December 31, 2019 and 2020 2019 Prior Year Current Yr 2020 Current assets $ 18,000 7,000 110,000 146,000 4,000 $ 285,000 $166,000 $ 94,000 8,000 21,000 35,000 8,000 Cash Short-term investments Accounts receivable, net Inventory Prepaid expenses Total current assets Property, plant, and equipment, net 233,000 55,000 Other assets 10,000 $528,000 12,000 $233,000 Total assets Current liabilities Short-term borrowings Accounts payable Total current liabilities $ 18,000 20,000 $38,000 $ 3,000 22,000 $25,000 Non-current debt 347,000 $385,000 43,000 $68,000 Total liabilities Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities & s/holders' equity $528,000 $110,000 33,000 $143,000 $135,000 30,000 $165,000 $233,000 Additional information (for 2020): Net income from operations 2020 4,100 $3,650 $1,500 $266,000 $450,000 (Don't get the years mixed up noted above) Interest expense Depreciation expense Cost of goods sold Net sales (all on credit) Industry benchmarks: (What the average ratios are for companies in this industry) acid test 1.00 gross profit %: 70% inventory turnover 4.10 times interest earned 17 current ratio 1.50 debt ratio .62 receivable turnover 30.1 Required: Using financial statement ratios and other information, analyse the performance of Adelaide for 2020. Write a report in good form. (In other words, "How is the company performing?") (Don't mix dn the years on the statement.)
Expert Answer:
Answer rating: 100% (QA)
Financial Performance of Adelaide for 2020 1 The current assets of the company has a slight fall down in the year 2020 compared to the previous year b... View the full answer
Related Book For
Using Financial Accounting Information The Alternative to Debits and Credits
ISBN: 978-1133161646
7th Edition
Authors: Gary A. Porter, Curtis L. Norton
Posted Date:
Students also viewed these accounting questions
-
The debt ratios of four companies are *Total capitalization represents all long-term debt plus shareholders' equity. The companies are part of the following industries: supermarket, chemical, apparel...
-
For 50 years prior to this case, India had placed complex restrictions on the import of agricultural, industrial, and consumer goods from other countries. Goods placed on the "negative list" could...
-
Case Study 2 Tartan Group Construction Limited (Tartan') is considering the possibility of bidding for a large family-owned house-building company, Tweed Limited. Tartan's business interests cover a...
-
Briefly explain the meaning of the following concepts and terms: greenhouse gases (GHGs), the IPCC, the little ice age, the Keeling graph, telekinetic property of the atmosphere, global weirding,...
-
At a recent PGA tournament (the Honda Classic at Palm Beach Gardens, Florida) the following scores were posted for eight randomly selected golfers for two consecutive days. At = 0.05, is there...
-
Calculate 0 1 tan 1 x dx.
-
As of May 31, how much does Stoffel Manufacturing owe to Reinke Wholesale Co.?
-
Pettigrew Company produces a product that has a variable cost of $13 per unit; the product sells for $28 per unit. The companys annual fixed costs total $375,000; it had net income of $75,000 in the...
-
70 99 a) Enter the exterior angles for this quadrilateral in the table and calculate the sum. b) Drag the points to create two new quadrilaterals and complete the table for both of these. c) Move to...
-
Write a function: string solution (string &S, string &T); that, given two strings S and T consisting of N and M characters, respectively, determines whether string T can be obtained from string S by...
-
John Williams (birthdate August 2, 1976) is a single taxpayer. John's earnings and withholdings as the manager of a local casino for 2021 are reported on his Form W-2: 555-94-9358 OMEN 1345-000 FASTO...
-
Sami charged $22,000 on his credit card which had interest rate of 29.99% interest. Sami's payment will pay off the card in 12 years. After 6 years of payments, Sami gets a raise and decides to pay...
-
Kantian ethics and utilitarianism provide very different justifications for criminal punishment. Please explain which justification you think is more persuasive, and why. Please write approximately...
-
The company came up with a better product and projects an ROE of 20%. The plowback ratio will be 0.3, and its earnings next year will be $2 per share. The market capitalization rate is 12%. What is...
-
10-year private equity fund had $200 million of committed capital, annual management fees of 2% of committed capital during its whole life. Assume that by the end of year 6, the fund has invested...
-
You can either buy a condo for $1,000,000 or rent it for $60,000 per year. If you buy it, the property taxes, condo fees and maintenance will cost you 3% of the condo market value each year. You...
-
The standard costs and actual costs for direct materials for the manufacture of 2,590 actual units of product are Standard Costs Direct materials 2,590 kilograms @$8.90 Actual Costs Direct materials...
-
A supermarket chain is interested in exploring the relationship between the sales of its store-brand canned vegetables (y), the amount spent on promotion of the vegetables in local newspapers (x1)...
-
The following income statements were provided by Gleeson Company, a retailer: Required 1. Identify each income statement as either single- or multiple-step format. 2. Convert the 2009 income...
-
Business entities are organized as one of three distinct forms. What are these three forms?
-
Billings Inc. would like to buy a franchise to provide a specialized service. Information about Billings is more useful to some people involved in the project than to others. Required Complete the...
-
Feng Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $42,300. The machines useful life is estimated at 10 years, or 363,000 units of...
-
In early January 2004, LabTech purchases computer equipment for $147,000 to use in operating ac tivities for the next four years. It estimates the equipments salvage value at $30,000. Prepare tables...
-
Cemer Manufacturing purchases a large lot on which an old building is located as part of its plans to build a new plant. The negotiated purchase price is $225,000 for the lot plus $120,000 for the...
Study smarter with the SolutionInn App