Answered step by step
Verified Expert Solution
Question
1 Approved Answer
2007 Income Statement Sales 155,000.00 COGS 104,000.00 Dep 11,800.00 EBIT 39,200.00 Interest 6,800.00 Taxable income 32,400.00 Taxes 8,600.00 NI 23,800.00 Waxham Feed Balance Sheet 2006
2007 Income Statement | |||||
Sales | 155,000.00 | ||||
COGS | 104,000.00 | ||||
Dep | 11,800.00 | ||||
EBIT | 39,200.00 | ||||
Interest | 6,800.00 | ||||
Taxable income | 32,400.00 | ||||
Taxes | 8,600.00 | ||||
NI | 23,800.00 | ||||
Waxham Feed Balance Sheet | |||||
2006 | 2007 | 2006 | 2007 | ||
Cash | 33,000.00 | 20,000.00 | A/P | 20,500.00 | 26,800.00 |
A/R | 25,200.00 | 19,300.00 | LTD | 65,500.00 | 73,000.00 |
Inventory | 40,570.00 | 55,760.00 | Common Stock | 75,000.00 | 100,000.00 |
Total CA | 98,770.00 | 95,060.00 | RE | 150,770.00 | 166,060.00 |
Net Fixed Asst | 213,000.00 | 270,800.00 | |||
Total Asset | 311,770.00 | 365,860.00 | Tot Lia. & OE | 311,770.00 | 365,860.00 |
If the industry quick ratio and cash ratio for 2007 are 1.3 and 0.85, respectively. What does your ratio analysis indicate?
The firm has an unusually high level of inventory relative to its industry | ||
The firm has an unusually low level of receivables relative to its industry | ||
The firm has an unusually low level of inventory relative to its industry | ||
The firm has an unusually high level of receivables relative to its industry | ||
The firm has an unusually low level of cash relative to its industry. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started