For the Chapter 1, Problem 11P, Financial Statement Anlysis of K.Subramanyam, after you explain some reason, i want to know your conlusion " should Tristar Mutual Fund invest the stock of Best Computer"?
0 Th - Th Vi / Facebc | CHC in n thi | Hp th | TaiLieu E TC: 9 Bi tp 4 Ch n Goog G The tr & FIN x C Get H C For Th | + - 0 x C Tp C:/Users/Ngan/AppData/Local/Temp/KuaiZip/KuaiZip/KuaiZip1cf414c85.tmp/Financial Statement_Analysis-11th-2014.pdf O FINANCIAL STATEMENT ANALYSIS, ELEVENTH EDITION 78 / 814 supporting each of your selections. PROBLEM 1-11 Ratio Interpretation Industry Comparisons The Tristar Mutual Fund manager is considering an investment in the stock of Best Computer and asks for your opinion regarding the company. Best Computer is a computer hardware sales and service company. Approximately 50% of the company's revenues come from the sale of computer hardware. The rest of the company's revenues come from hardware service and repair contracts. Below are financial ratios for Best Computer and comparative ratios for Best Computer's indus- try. The ratios for Best Computer are computed using information from its financial statements. Best Computer Industry Average 3.45 2.58 42.19 18.38 3.10 1.85 36.60 18.29 Liquidity ratios Current ratio ........... Acid-test ratio ................... Collection period ................. Days to sell inventory ............. Capital structure and solvency Total debt to equity ............. Long-term debt to equity ........... Times interest earned ............ Return on investment Return on assets ...... ..... Return on common equity .......... 0.674 0.368 9.20 0.690 0.400 9.89 31.4% 52.6% 30.0% 50.0% 60 Financial Statement Analysis Best Computer Industry Average Activate Windows Go to Settings to activate Windows, Hin th tt c 0 Q cong nhan gia...pdf ~ X 3:29 PM A T 1) - ENG 0 Th - Th Vi / Facebc | CHC in n thi | Hp th | TaiLieu E TC: 9 Bi tp 4 Ch n Goog G The tr & FIN x C Get H C For Th | + - 0 x C Tp C:/Users/Ngan/AppData/Local/Temp/KuaiZip/KuaiZip/KuaiZip1cf414c85.tmp/Financial Statement_Analysis-11th-2014.pdf O FINANCIAL STATEMENT ANALYSIS, ELEVENTH EDITION 78 / 814 supporting each of your selections. PROBLEM 1-11 Ratio Interpretation Industry Comparisons The Tristar Mutual Fund manager is considering an investment in the stock of Best Computer and asks for your opinion regarding the company. Best Computer is a computer hardware sales and service company. Approximately 50% of the company's revenues come from the sale of computer hardware. The rest of the company's revenues come from hardware service and repair contracts. Below are financial ratios for Best Computer and comparative ratios for Best Computer's indus- try. The ratios for Best Computer are computed using information from its financial statements. Best Computer Industry Average 3.45 2.58 42.19 18.38 3.10 1.85 36.60 18.29 Liquidity ratios Current ratio ........... Acid-test ratio ................... Collection period ................. Days to sell inventory ............. Capital structure and solvency Total debt to equity ............. Long-term debt to equity ........... Times interest earned ............ Return on investment Return on assets ...... ..... Return on common equity .......... 0.674 0.368 9.20 0.690 0.400 9.89 31.4% 52.6% 30.0% 50.0% 60 Financial Statement Analysis Best Computer Industry Average Activate Windows Go to Settings to activate Windows, Hin th tt c 0 Q cong nhan gia...pdf ~ X 3:29 PM A T 1) - ENG
