Selected financial data (in thousands) of two competitors, New Ltd and Old Ltd, for 2015 are presented

Question:

Selected financial data (in thousands) of two competitors, New Ltd and Old Ltd, for 2015 are presented here:

Required

For each entity, calculate these values and ratios:

(a) Working capital.

(b) Current ratio.

(d) Return on assets.

(e) Profit margin.

(f) Compare the liquidity, solvency and profitability of the two entities.

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Financial Accounting Reporting Analysis And Decision Making

ISBN: 9780730313748

5th Edition

Authors: Shirley Carlon, Rosina Mladenovic Mcalpine, Chrisann Palm, Lorena Mitrione, Ngaire Kirk, Lily Wong

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Question Posted: Sep 05, 2022 11:46 PM

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Selected financial data (in thousands) of two competitors, New Ltd and Old Ltd, for 2015 are presented

Question:

Net sales Cost of sales Borrowing costs (interest expense) Income tax expense Profit NEW Ltd OLD Ltd Selected statement of profit or loss data for year $420 000 227 500 36 750 49 000 56 000 $350 000 178 500 105 000 14 000 17500

Step by Step Answer:

a Working capital New Ltd 115500 52500 63000 Old Ltd 70000 35000 35000 b Current ratio New Ltd ...View the full answer

Financial Accounting Reporting Analysis And Decision Making

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