FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Based on the information below, should I invest in this company? Explain your answer:| Liquidity Ratio Current ratio 2020 = 4 times Current ratio 2019

image text in transcribed

Based on the information below, should I invest in this company? Explain your answer:| Liquidity Ratio Current ratio 2020 = 4 times Current ratio 2019 = 3.92 times Asset Management Ratio Inventory Turnover Ratio 2020 = 2.98 times Inventory Turnover Ratio 2019 = 6.51 times Debt Management Ratio Days Payable Outstanding 2020 = 25.9 days Days Payable Outstanding 2019 = 20.71 days Profitability Ratio Net Profit Margin 2020 = 5.55% Net Profit Margin 2019 = 8.98 %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Journey To Financial Autonomy

Journey To Financial Autonomy

Authors: Terry R. Hamman

1st Edition

979-8866617579

More Books

Students also viewed these Finance questions

Question

★★★★★
Calculate the 2011 profit margin, basic earning power (BEP), return on assets (ROA), and return on equity (ROE). What can you say about these ratios?

Answered: 1 week ago

Question

★★★★★
Consider the hypergeometric distribution with parameters r, n, and N. Suppose r depends on N in such as way that r/N p as N , where 0 Answered: 1 week ago

Answered: 1 week ago

Question

★★★★★
=+a. Suppose that the price of each ride is $5. At that price, how much consumer surplus does an individual consumer get? (Recall that the area of a right triangle is 2 the height of the triangle x...

Answered: 1 week ago

Question

★★★★★
What would you recommend for the next possible steps? In September at its initial meeting of the academic year, the Council of Fraternities and Sororities (CFS) at Mount Clement University decided to...

Answered: 1 week ago

Question

★★★★★
Based on the information below, should I invest in this company? Explain your answer:| Liquidity Ratio Current ratio 2020 = 4 times Current ratio 2019 = 3.92 times Asset Management Ratio Inventory...

Answered: 1 week ago

Question

★★★★★
Romeo, Sally and Tito are partners having capitals of P64,000, P80,000, and P56,000, respectively.They share earnings as follows: Romeo30% Sally 40% Tito 30% 100% They sold their non-cash assets for...

Answered: 1 week ago

Question

★★★★★
Case Study - Social-Emotional Development of Children Kathryn first used drugs knowingly when she was 12 years old. Her mother and uncle influenced her behaviour. She was only 16 when her daughter...

Answered: 1 week ago

Question

★★★★★
Taylor, a Scrum Master, was asked for their advice on how large a Scrum Team should be . . Which of these responses is correct? ? A ) ) The typical size of an effective Scrum Team is ten or fewer....

Answered: 1 week ago

Question

★★★★★
ABC Company has current assets of $100,000 and capital assets of $140,000. Current liabilities are $60,000 and long-term liabilities are $90,000. There is $40,000 in preferred stock outstanding and...

Answered: 1 week ago

Question

★★★★★
Tamarisk Corporation had income from continuing operations of $10,763,000 in 2025. During 2025, it disposed of its restaurant division at an after-tax loss of $201,600. Prior to disposal, the...

Answered: 1 week ago

Question

★★★★★
Bonita Corporation had income from continuing operations of $10,615,500 in 2025. During 2025, it disposed of its restaurant division at an after-tax loss of $191,900. Prior to disposal, the division...

Answered: 1 week ago

Previous Question Next Question