Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I already answered current ratio, times interest earned, inventory turnover, and total asset turnover correctly now I just need the rest. 9. (Financial statement analysis)

I already answered current ratio, times interest earned, inventory turnover, and total asset turnover correctly now I just need the rest. image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
9. (Financial statement analysis) Carson Electronics management has long viewed BGT Electronics as an industry leader and uses this firm as a model firm for analyzing its own performance. The balance sheets and income statements for the two firms are found here:t a. Calculate the following ratios for both Carson and BGT Operating return on assets Debt ratio Average collection period Fixed asset turnover Return on equity Current ratio Times interest earned Inventory tunover Total asset turnover Operating profit margin b. Analyze the differences you observe between the two firms. Comment on what you view as weaknesses in the performance of Carson as compared to BGT that Carson's management might focus on to improve its operations. a. Calculate the following ratios for both Carson and BGT Carson's current ratio is 1.14 (Round to two decimal places.) BGTs current ratio is 1.24 .(Round to two decimal places.) Carson's times interest earned is 3.391 times. (Round to two decimal places.) BGT's times interest eamed is 28.035 times. (Round to two decimal places.) Carson's inventory turnover is 24.86 times. (Round to hwo decimal places.) BGT's inventory turnover is 16.59 times. (Round to two decimal places.) Carson's total asset tunover is 2.00 (Round to two decimal places.) BGT's total asset turnover is- 2.00-. (Round to two decimal places.) Carson's operating profit margin is BT's operating profit margin is % Carson's operating retum on assets is %. (Round to one decimal place.) BGT's operating return on assets is Carson's debt ratio is BGT's Carson's average collection period is BGT's average collection period is Carson's fixed asset turnover is BGT's fixed asset turnover its Carson's return on equity is BGT's retum on equity is %, (Round to one decimal place.) , (Round to one decimal place.) -- %.(Round to one decimal place.) %. (Round 10 one decimal place.) debt ratio is %, (Round to one decimal place.) days. (Round to one decimal place.) days. (Round to one decimal place.) (Round to two decimal places.) Round to two decimal places.) (Round to one decimal place.) % %, (Round to one decimal place.)

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_2

Step: 3

blur-text-image_3

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

Technical Analysis Of Stock Trends

Authors: Robert D. Edwards, John Magee

6th Edition

1599180219, 978-0139043437

More Books

Students also viewed these Finance questions