The information below is excerpted from the financial statements of two companies active in the retail...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The information below is excerpted from the financial statements of two companies active in the retail industry. Use this information and the proper financial ratio(s) to answer the following questions (in $ million) Company A Company B Net revenues 107958 37296 Net income 3526 1188 Accounts receivables 910 19908 Total current assets 18672 29564 Total ass Total current liabilities 12708 15370 Total liabilities 26494 32433 Total stockholders' equity 14000 4500 Note: Approximately 98% of Company B's account receivables are from unpaid balances carried by customers using the store credit card. Is one company significantly more profitable than the other? Justify using appropriate ratio(s) The information below is excerpted from the financial statements of two companies active in the retail industry. Use this information and the proper financial ratio(s) to answer the following questions (in $ million) Company A Company B Net revenues 107958 37296 Net income 3526 1188 Accounts receivables 910 19908 Total current assets 18672 29564 Total ass Total current liabilities 12708 15370 Total liabilities 26494 32433 Total stockholders' equity 14000 4500 Note: Approximately 98% of Company B's account receivables are from unpaid balances carried by customers using the store credit card. Is one company significantly more profitable than the other? Justify using appropriate ratio(s)
Expert Answer:
Answer rating: 100% (QA)
Answer To find out which company uses its assets better we need to find ... View the full answer
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
Posted Date:
Students also viewed these accounting questions
-
The following information is excerpted from the financial statements in a recent annual report of Blue Jay Manufacturing Corporation. (Dollar figures and shares of stock are in thousands.)...
-
Use Checkpoint to answer the following questions regarding the ability to expense advanced mine safety equipment. a. Using expense mine safety equipment as keywords (not in quotation marks), search...
-
Use the CCH IntelliConnect Citator to answer the following questions regarding Notice 2010-10: a. Where is the notice located in the Internal Revenue Bulletin? b. Where is the notice annotated? c....
-
According to a study conducted by the Gallup organization, the proportion of Americans who are afraid to y is 0.10. A random sample of 1100 Americans results in 121 indicating that they are afraid to...
-
What are the two AICPA resource centers to which CPA firms may belong? What are the primary purposes of the two centers?
-
In a germination trial, 50 seeds were planted in each of 40 rows. The number of seeds germinating in each row was recorded as listed in the following table. a. Use the preceding frequency...
-
Deferred Tax Calculations (Appendix) Wyhowski Inc. reported income from operations, before taxes, for 20062008 as follows: When calculating income, Wyhowski deducted depreciation on plant equipment....
-
On July 1, 2010, Rossillon Company issued $4,000,000 face value, 8%, 10-year bonds at $3,501,514.This price resulted in an effective-interest rate of 10% on the bonds Rossill on uses the...
-
Peanut Company acquired 1 0 0 percent of Snoopy Company's outstanding common stock fu , $ 3 1 7 , 0 0 0 on January 1 , 2 0 8 , when the book value of Snoopy's net assets was equal to $ 3 1 7 , 0 0 0...
-
As for the Bob case, the Plaintiff in this case, Billy Bob worked for Widget World Co., the Defendant, as a truck driver. Mr. Bob suffered from a workplace injury, and reported it to the company. Mr....
-
For the beam with built-in ends, determine (a) all the support reactions; and (b) the displacement at midspan.
-
If one of Dannis customers, who bought drinks worth 30 during January, was allowed not to pay immediately but was given one months credit, then: 1. What would be the effect on Dannis profit for...
-
Poppy started a business on 1 July 2011 as a personal fitness instructor and put in 8,000 capital to fund it. She prepared her first years accounts to 30 June 2012. During her first year, she...
-
How might someone preparing accounts know whether the business has accruals and prepayments at the year-end?
-
Which of the following internal controls is most likely to justify a reduction of control risk concerning plant and equipment acquisitions? a. Periodic physical inspection and reconciliation of plant...
-
Danni sells drinks cans from his van in Berlin. On Monday he started the day with 30 cans in his fridge. He bought 50 more cans during the day, and he finished the day with 20 cans. 1. How many cans...
-
enter a formula in cell b3 using the VLOOKUP function to find the meaning for the medical abbreviation listed in cell a3
-
Do animals have rights? If so, what are they? What duties do human beings have toward animals? Does KFC protect animal welfare at an acceptable level?
-
Black and Blue, Inc., overlooked $100,000 of inventory at the end of the current year because it was stored temporarily in a warehouse owned by another company. Before discovering this error, the...
-
Explain how the unit contribution margin can be used to determine the unit sales required to break even.
-
On September 1, 2011, Bella Company issued $5 million in 10-year, 12 percent bonds payable. Interest is payable semiannually on March 1 and September 1. Bond discounts and premiums are amortized at...
-
Select a large, well-known company and access its annual report online. In the annual report of the company you have chosen, find the four basic financial statements and the notes to the financial...
-
Refer to the Look Back section in this chapter and to Dells classified balance sheet in Exhibit 2. Write a memorandum to the board of directors that summarizes Dells profitability performance from...
-
Beacon Systems, located outside Atlanta, develops computer software and licenses it to financial institutions. The firm uses an aggressive accounting method that records revenues from the software it...
Study smarter with the SolutionInn App