AutoSave Off HB Week 2 Homework Student - Compatibility Mode - Excel Search File Home Insert Draw Page Layout Formulas Data Review View Help Cambria 14 ' " = a Wrap Text General Paste BIU v $ V Merge & Center %) Conditional Format as Formatting Table Styles Clipboard Font Alignment Number A1 fox Ratio Analysis A E C L M N 0 P Q R 1 E F G H J K Ratio Analysis Averag Calculation e Explanation Good/Bad? A measure of short-term liquidity or how often current assets cover current liabilities Formula Current Assets Current Liabilities Current Ratio: 5 2.1 == -- + rs Quick Ratio: Current Assets - Inventoru Current Liabilities Eliminates inventory because it's the least liquid current asset 1.0 Lamar's Swimwear Balance Sheet December 312020 Assets: Current Assets: Cash 52,200 Marketable Securities 24,400 Accounts Receivable, net 222,000 Inventory 238,000 Total current assets Investments Plant & Equipment 615,000 Less Accum Depreciation (2710001 Net Plant & Equipment Total Assets Total Liabilities Total Assets 334.200 946,500 We want lower liabilities compared to our assets ##### 65,900 33.0% Total Debt Total Equity we want lower liabilities compared to our equity ##### ##### 2.0 Total Assets Total Equity how much of our assets are lower = better financed by debt rather than equity 2.0 ?? EBIT Interest 181,000 Measures how well a firm has its interest obligations covered 10 Total Debt Ratio: 12 13 14 15 Debt-Equity Ratio: 16 17 18 19 Equity Multiplier 20 21 22 23 Times Interest 24 Earned Ratio: 25 26 27 Inventory TO Ratio: 28 29 30 31 Average days in inv: 32 33 34 35 Receivables turnove 36 37 38 39 Fixed Asset Turnove 40 7.0 Liabilities & Stockholders Equity Current Liabilities: Accounts Payable 93,400 Notes Payable 70,600 Accrued Taxes 17 000 Total current liabilities Long-term Liabilities: Bonds Payable Total Liabilities Stockholders' Equity: Preferred Stock, $50 par value 100,000 Common Stock. $1 par value 80,000 Paid in Capital in Excess of Par 190,000 Retained Earnings 242,300 Total Stockholders' Equity Total Liabilities & Stookholders Equity 153,200 ##### COGS Ave Inventory this tells us the # of times we sell all of our inventory 7.0 365 Inv TO Ratio this tell us how many DAYS it takes us to sell our inventory 612,300 ##### 52.1 days Sales Average AlRec this tells us how many times each year we collect our arrec 10.0 Sales Fixed Assets checks how much we sell compared to our investment Lamar's Swimwear Income Statement For the Year Ended December 31 2020 Sales on credit ###### Less: Cost of Goods Sold 1313,000 Tab 5 IN CLASS ACTIVITY 2 IN CLASS ACTIVITY 3 Tab 1 HBO Tab 2 Tab 3 Tab 4 Ready gi a AutoSave Off HB Week 2 Homework Student - Compatibility Mode - Excel Search File Home Insert Draw Page Layout Formulas Data Review View Help Cambria 14 ' " = a Wrap Text General Paste BIU v $ V Merge & Center %) Conditional Format as Formatting Table Styles Clipboard Font Alignment Number A1 fox Ratio Analysis A E C L M N 0 P Q R 1 E F G H J K Ratio Analysis Averag Calculation e Explanation Good/Bad? A measure of short-term liquidity or how often current assets cover current liabilities Formula Current Assets Current Liabilities Current Ratio: 5 2.1 == -- + rs Quick Ratio: Current Assets - Inventoru Current Liabilities Eliminates inventory because it's the least liquid current asset 1.0 Lamar's Swimwear Balance Sheet December 312020 Assets: Current Assets: Cash 52,200 Marketable Securities 24,400 Accounts Receivable, net 222,000 Inventory 238,000 Total current assets Investments Plant & Equipment 615,000 Less Accum Depreciation (2710001 Net Plant & Equipment Total Assets Total Liabilities Total Assets 334.200 946,500 We want lower liabilities compared to our assets ##### 65,900 33.0% Total Debt Total Equity we want lower liabilities compared to our equity ##### ##### 2.0 Total Assets Total Equity how much of our assets are lower = better financed by debt rather than equity 2.0 ?? EBIT Interest 181,000 Measures how well a firm has its interest obligations covered 10 Total Debt Ratio: 12 13 14 15 Debt-Equity Ratio: 16 17 18 19 Equity Multiplier 20 21 22 23 Times Interest 24 Earned Ratio: 25 26 27 Inventory TO Ratio: 28 29 30 31 Average days in inv: 32 33 34 35 Receivables turnove 36 37 38 39 Fixed Asset Turnove 40 7.0 Liabilities & Stockholders Equity Current Liabilities: Accounts Payable 93,400 Notes Payable 70,600 Accrued Taxes 17 000 Total current liabilities Long-term Liabilities: Bonds Payable Total Liabilities Stockholders' Equity: Preferred Stock, $50 par value 100,000 Common Stock. $1 par value 80,000 Paid in Capital in Excess of Par 190,000 Retained Earnings 242,300 Total Stockholders' Equity Total Liabilities & Stookholders Equity 153,200 ##### COGS Ave Inventory this tells us the # of times we sell all of our inventory 7.0 365 Inv TO Ratio this tell us how many DAYS it takes us to sell our inventory 612,300 ##### 52.1 days Sales Average AlRec this tells us how many times each year we collect our arrec 10.0 Sales Fixed Assets checks how much we sell compared to our investment Lamar's Swimwear Income Statement For the Year Ended December 31 2020 Sales on credit ###### Less: Cost of Goods Sold 1313,000 Tab 5 IN CLASS ACTIVITY 2 IN CLASS ACTIVITY 3 Tab 1 HBO Tab 2 Tab 3 Tab 4 Ready gi a