Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Geodesic Domes, Inc., builds environmentally sensitive structures. The company's 2020 revenues totalled $2,500 million. At December 31,2020 and 2019 , the company had $645 million
Geodesic Domes, Inc., builds environmentally sensitive structures. The company's 2020 revenues totalled $2,500 million. At December 31,2020 and 2019 , the company had $645 million and $580 million in current assets, respectively. Accounts payable at the end of 2018 was $187 million. The December 31,2020 and 2019 , balance sheets and income statements reported the following amounts: (Click the icon to view the financial statements.) What were the company's total assets at December 31, 2020 ? The total assets at December 31,2020 , were ? million. Evaluate the company's leverage and debt ratio at the end of 2019 and 2020. Did the company improve, deteriorate, or remain about the same over the year? Begin by computing the debt ratios. (Round your answers to two decimal places, X.XX.) The debt ratio for 2020 is The debt ratio for 2019 is For the leverage ratio, first determine the formula. Then complete the formula and calculate the leverage ratios at the end of 2019 and 2020.(Enteramountsinmillions.Roundyouran two decimal places, X.XX.) Did the company improve, deteriorate, or remain about the same over the year? Both the leverage ratio and debt ratio in 2020. The company's ability to pay its long-term debts over the year. Requirement 3. Evaluate whether the company 's ability to pay its short-term debts improved, deteriorated, or remained about the same over the year. Determine the formula for the accounts payable turnover. Then complete the formula and calculate the accounts payable turnover ratios at the end of 2019 and 2020 . (Enter amounts in millions. Determine the formula for the accounts payable turnover. Then complete the formula and calculate the accounts payable turnover ratios at the end of 2019 and 2020 . (Enter amounts in millions. Round your answer to two decimal places, X.XX.) 20202019111=Accountspayableturnover== Next, determine the formula for the days payable outstanding (DPO). Then complete the formula and calculate the days payable outstanding at the end of 2019 and 2020 . (Enter the amounts in the formula to two decimal places, X.XX. Round your answers to the nearest whole day.) Now, determine the formula for the current ratios. Then complete the formula and calculate the current ratios at the end of 2019 and 2020 . (Round your answers to two decimal places, X.XX.) Evaluate whether the company improved or deteriorated from the standpoint of ability to cover accounts payable and current liabilities. The company's ability to pay its short-term debts over the year Financial statements
Step 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