Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cordillera Carson Company has the following balance sheet and income statement for 20X2 (in thousands): Part 3 Tools of Financial Analysis and Planning 162 BALANCE

Cordillera Carson Company has the following balance sheet and income statement for 20X2 (in thousands): Part 3 Tools of Financial Analysis and Planning 162 BALANCE SHEET INCOME STATEMENT Cash $ 400 Net sales (all credit) $12,680 Accounts receivable 1,300 Cost of goods sold 8,930 Inventories 2,100 Gross profit $ 3,750 Current assets $3,800 Selling, general, and Net fixed assets 3,320 administration expenses 2,230 Total assets $7,120 Interest expense 460 Profit before taxes $ 1,060 Accounts payable $ 320 Taxes 390 Accruals 260 Profit after taxes $ 670 Short-term loans 1,100 Current liabilities $1,680 Long-term debt 2,000 Net worth 3,440 Total liabilities and net worth $7,120 Notes: (i) current periods depreciation is $480; (ii) ending inventory for 20X1 was $1,800. On the basis of this information, compute (a) the current ratio, (b) the acid-test ratio, (c) the average collection period, (d) the inventory turnover ratio, (e) the debt-to-net-worth ratio, (f ) the long-term debt-to-total-capitalization ratio, (g) the gross profit margin, (h) the net profit margin, and (i) the return on equity

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

Analysis For Financial Management

Authors: Robert Higgins

7th Edition

0072863641, 9780072863642

More Books

Students also viewed these Finance questions

Question

What would I do next and why?

Answered: 1 week ago