Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Choices: Agree, Disagree, Current Ratio, Quick Ratio, AR Turnover, Inventory Turnover, Return on Sales, Asset Turnover, ROA, Debt Ratio, TIE p lease answer all. Will
Choices: Agree, Disagree, Current Ratio, Quick Ratio, AR Turnover, Inventory Turnover, Return on Sales, Asset Turnover, ROA, Debt Ratio, TIE
please answer all. Will up-vote! Thanks.
For this assignment you will need to analyze 2 years of ratios to assess the performance of a firm. A list of the ratios/formulas can be found in Chapter 7 of the textbook (pages 131 - 139). For each statement, you should identify the appropriate ratio and then identify if you agree or disagree with the statement. Each statement is worth 2 points. Partial credit is available for identifying the appropriate ratio and marking the wrong agree/disagree. I will have to manually adjust grades for this so your score may improve after I clean up the file. This is due on Sunday, October 18th. You will have one untimed attempt with the ability to start/stop. Current Quick AR turnover Inventory turnover Return on sales Asset turnover ROA Debt ratio TIE 2012 2.65 1.54 8.14 6.17 14.74% 1.22 17.97% 40.64% 4.20 2013 2.5 1.5 5.9 4.62 9.63% 1.06 17.97% 44.41% 1.89 QUESTION 1 This firm has a higher amount of equity in 2012 than in 2013. (Hint: what's the opposite of a firm using equity to raise funds?) Ratio used: Agree/disagree: QUESTION 2 This firm is generating more sales from total assets in 2013 than in 2012. Ratio used: Agree/disagree: QUESTION 3 This firm is keeping more of its sales as profit in 2013 than in 2012. Ratio used: Agree/disagree: QUESTION 4 This firm will have greater liquidity problems in 2013 than in 2012 (assume it cannot sell its inventory). Ratio used: Agree/disagree: QUESTION 5 ability to cover 2012 than in 2013. This firm Ratio used: Agree/disagree: QUESTION 6 This firm is selling inventory slower in 2012 than in 2013. Ratio used: Agree/disagree: QUESTION 7 This firm will have greater liquidity problems in 2012 than in 2013 (assume it can sell its inventory). Ratio used: Agree/disagree: QUESTION 8 This firm is generating a higher amount of profits from assets in 2013 than in 2012. Ratio used: Agree/disagree: QUESTION 9 This firm is collecting receivables more quickly in 2013 than in 2012. Ratio used: Agree/disagreeStep 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