Compute the following ratios for Stowe Enterprises for 2014 and 2015: Financial statement information Short-TermAsset Management Long-Term
Question:
Compute the following ratios for Stowe Enterprises for 2014 and 2015:
Financial statement information
Short-TermAsset Management Long-Term Solvency Profitability Solvency Ratios Ratios Current ratio Total asset turnover Debt ratio Quick ratioInventory turnoverDebt-to-equity ratio Return on assets Cash ratio Ratios Ratios Profit margin Receivables turnover Equity multiplierReturn on equity Interest coverage Cash coverage ratio STOWE ENTERPRISES Sales Cost af goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income 2015 Statement of Comprchensive Income $4,500 2,400 500 S1,600 480 S1,120 380 S 740 S 186 S 554 Net income Addition to retained earnings Dividends STOWE ENTERPRISES Abbreviated Statement of Financial Position, 2014-2015 Assets 2014 2015 Liabilitics and 2014 2015 sharcholders cquity Current liabilities Current assets Cash Accounts receivable Inventory Fixed assets Net plant and equipment s 8001,800 Accounts payable 1,950 3,135 1,550 1,630 1,629 1,380 625 3,487 3,780 2,040 Notes payable 2,300 Other 746 Long-term debt Shareholders equity 4,620 5,130 common shares 570 1,146 Accumulated retained earnings Total liabilitics and 2,523 2,709 Total assets $10,505 $11270 sharcholders' equity S10,505 S11,270
Step by Step Answer:
Shortterm Solvency Ratios Current ratio for 2014 800 19503135 1550 1629 746 150 Current ratio for 20...View the full answer
Corporate Finance
ISBN: 978-0071339575
7th Canadian Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Ro
Related Video
Inventory turnover is a key metric that helps businesses evaluate the efficiency of their operations. A high turnover ratio is generally considered positive, indicating that the company is effectively selling its inventory and making efficient use of its resources. On the other hand, a low turnover ratio may indicate issues such as overstocking or slow sales and may require further examination to identify and address the underlying causes. Businesses use this ratio to make decisions about inventory levels, production schedules, and pricing strategies. It also helps businesses to identify areas where they may need to make improvements, such as reducing lead times for production or optimizing sales and marketing efforts. Additionally, inventory turnover is used by investors and analysts as a key performance indicator to evaluate the financial health and growth potential of a company.
Students also viewed these Managerial Accounting questions
-
5 points A manufacturing plant produces 5 000 000 kg per year of a certain product. The selling price of this product is SR 15/kg. The cost of producing this product is evaluated as shown in the...
-
The production budget shows that expected unit sales are 48,000. The desired ending inventory of finished goods = 54,000 units. What are the required production units? 101,000 102,000 6,000 Not...
-
Compute the following ratios for The Home Depot s year ended February 2, 2014: fixed asset turnover, days to sell, and debt- to- assets. To calculate the ratios, use the financial statements of The...
-
Using the data provided in BE19-21, determine the ending balance of the plan assets and indicate the funded status of the plan at the end of the year under U.S. GAAP. In BE19-21 Armando Hernandez...
-
Assume the following equations summarize the structure of a small open economy with a flexible exchange rate system. C = Ca + 0.85(Y - T) Ca = 200 - 8r T = 200 + 0.2Y (M/P)d = 0.25Y - 25r Ms/P =...
-
AssignmentSessionLocator Binpro... 1o eBook Print Item Schedule of Cash Payments for a Service Company Oakwood Financial Inc. was organized on February 28. Projected selling and administrative...
-
Based on Mackenzies experience, what benefits and drawbacks are associated with online car buying?
-
Drs. Glenn Feltham and David Ambrose began operations of their physical therapy clinic, called Northland Physical Therapy, on January 1, 2017. The annual reporting period ends December 31. The trial...
-
Che Required information The following information applies to the questions displayed below. The stockholders' equity of TVX Company at the beginning of the day on February 5 follows: Common...
-
Digby's Elite product Dart has an awareness of 72%. Digby's Dart product manager for the Elite segment is determined to have more awareness for Dart than Andrews' Elite product Abby. She knows that...
-
Consider the following information for the PVI Corporation: Credit sales...............................................$17,465 Cost of goods sold................................... 12,216 Accounts...
-
Prepare a statement of cash flows for Stowe. STOWE ENTERPRISES Sales Cost af goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income 2015 Statement of Comprchensive...
-
Consider air flowing past a hemisphere resting on a flat surface, as in Fig. P8.99. If the internal pressure is pi, find an expression for the pressure force on the hemisphere. By analogy with Prob....
-
If f ( x ) = - 6 x ^ 2 sin ( 3 x ) + 4 x cos ( 3 x ) what if f ' ( x ) ?
-
What is deformation?
-
What is a switched capacitor circuit?How do we design a switched capacitor circuit?
-
What is meant by wavelet fault diagnosis of an induction motor?
-
How do we design an electromagnetic relay?
-
Placing the jet engines at the rear of an airplane: a. Contributes to a stabilizing moment for pitch stability. b. Contributes to a destabilizing moment for pitch stability. c. Does not create a...
-
Rowland Textile Inc. manufactures two products: sweatshirts and T-shirts. The manufacturing process involves two activities: cutting and sewing. Expected overhead costs and cost drivers are as...
-
What is virial equation of state?
-
Does interest rate parity imply that interest rates are the same in all countries?
-
Why might purchasing power parity fail to hold?
-
We sometimes need to find how long it will take a sum of money (or anything else) to grow to some specified amount. For example, if a company's sales are growing at a rate of 20 percent per year, how...
-
Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2...
-
Prepare the adjusting journal entries and Post the adjusting journal entries to the T-accounts and adjust the trial balance. Dresser paid the interest due on the Bonds Payable on January 1. Dresser...
-
Venneman Company produces a product that requires 7 standard pounds per unit. The standard price is $11.50 per pound. If 3,900 units required 28,400 pounds, which were purchased at $10.92 per pound,...
Study smarter with the SolutionInn App