Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

COMPANY X COMPANY Y NET REV 37296 107956 NET INCOME 1188 3526 A/R 19908 910 TOTAL CURRENT ASSET 29564 18672 TA 49472 19582 TOTAL CURRENT

COMPANY X COMPANY Y
NET REV 37296 107956
NET INCOME 1188 3526
A/R 19908 910
TOTAL CURRENT ASSET 29564 18672
TA 49472 19582
TOTAL CURRENT LIABILITIES 15370 12708
TL 32433 29494
TOTAL STOCKHOLDERS' EQUITY 4500 14000

Footnote: approximately 98% of company Y's account receivable are from unpaid balances carried by customers using store credit card

-> Which company is better positioned to pay its bills in the short run. Justify using appropriate ratio

-> Is one company significantly more profitable than the other? Justify using appropriate ratio

-> Which company uses its assets better? Justify using appropriate ratio

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

More Books

Students also viewed these General Management questions