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answer both questions please and if you only want to answer 1 then dont do it!!!!!! Consider the following financial data for Smith Corp Statement

answer both questions please and if you only want to answer 1 then dont do it!!!!!! image text in transcribed
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Consider the following financial data for Smith Corp Statement of Financial Position as of December 31, 2018 Cash equivalents $ 103.000 Accounts payable Receivables 119.500 Notes payable Inventories 92.000 Accrued wages taxes Total current assets $ 314.500 Total current liabilities Long term debt Net foxed assets 513.000 Common equity Total assets $ 827.500 Total liab. & equity 5 Income Statement for 2018 Industry Average Ratios Sales $ B11,000 Current ratio Cost of sales 584.000 Quick ratio Gross profit s 227.000 Days sales outstanding Operating expenses 143.500 Inventory turnover EENT $ 83.509 Total asset turnover Interest expense 18.500 Net profit margin Pre-earnings 65,000 Return on assets Income taxes 25 16.250 Return on equity 48.250 Debt to capital ratio 37,000 136,500 28.000 201.500 252,000 374 000 8227.500 1:4 0.9 60 days 13 6.6 8.4% 17.41 38% Compared to its peers. Smith has a higher profit margin bhas a higher return on equity och lower current and quick ratios Ed.obtainless of its capital from equity financing De takes longer to collect its accounts receivable. Consider the following financiar data for Shields Enterprises Balance Sheet as of December 31, 2019 $ Cash & equivalents Acets, receivable inventories Total current assets 232.000 223,000 301.000 756,000 $ Accounts payable Short-term banknote Accruals Total current liabilities Long-term debt Common equity Total lab & equity 102,500 427,500 65.500 595.500 32,000 934.000 1.561.500 Net fixed assets Total assets $ 805.500 1.561.500 Income Statement for 2019 $ 1.6 Sales revenue Cost of sales Gross profit Operating expenses $ Industry Average Ratios Current ratio Quick ratio Days sales outstanding Inventory turnover Total asset turnover Net profit margin Return on assets Retum or equity Debt-to-capital ratio EBIT 1,686,500 1.096.000 590,500 408.000 182.500 33.500 149,000 52.150 96.850 3 1.1 41 days 27 1.5 3.00 4.39 10.196 44 Interest expense Pre-tax income Income taxes (35%) - Net earnings S $ Compared to its peers, Shields. a uses less equity financing bhas higher current and quick ratios. chas a lower profit margin Od generates lower sales per dollar of inventory e has a lower return on equity

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