Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need answer Statement of financial position As of 31/12/2017 2017 2016 Cash and Equivalents 5000 3000 Accounts Receivable 25000 15000 Inventory 19000 21000 Total

I need answer

image text in transcribed
Statement of financial position As of 31/12/2017 2017 2016 Cash and Equivalents 5000 3000 Accounts Receivable 25000 15000 Inventory 19000 21000 Total Current Assets 49000 39000 Property, Plant & Equipment(net) 55000 40000 Total Asset 104000 79000 Total Current Liabilities 25000 15000 Long-term Debt 28000 20000 Total Liabilities 53000 35000 Common Stock (40000 shares @ $1 par value) 40000 40000 Treasury shares (3000 shares @ $1 par [value) 4000- 4000- Retained Earnings 15000 8000 Total Shareholder's Equity 51000 44000 Total Liabilities and Owner's Equity 104000 79000 First Question: Read and analyze the following financial statements for NANO CO for 2017. Then :answer the questions Income statement For year ended 31/12/2017 2017 2016 Sales (75% credit) 130000 80000 Cost of Goods Sold 88000- 42000- Gross Profit 42000 38000 Operating expenses 24000- 20000- ABIT 18000 18000 Interest Expense 2000- 2000- Earnings Before Taxes 16000 16000 Taxes @ 40% 6400- 6400- Net Income 9600 9600 Additional information from past years and from industry: Current ratio of industry is 2 :1. Collection period for competitors is 30 days. Market sales in 2016 is $ Days to sell inventory in industry is 20 days. 280000. Market sales in 2017 is $ Average Debt to equity ratio in last years is 500000. 35% put your analysis report for NANO co. for 2017 in details (calculation, comments, expectations and conclusions): 1. Analyze the following items horizontally: sales, inventory, cost of goods sold, accounts receivables. Analyze the following items vertically: sales, inventory, cost of goods sold, accounts .2 . receivables 3. Analyze the company' liquidity position. 4. Compute total debts to assets ratio, times interest earned. 5. If the company sells from its inventory costs $2000, by $ 2500 on accounts, what are the effects on the following ratios: current ratio, quick ratio, collection period. - compute ratios in details and comment. 6. Compute ROA and ROCE and their components, then comment on findings

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Advanced Accounting

Authors: Gail Fayerman

1st Canadian Edition

9781118774113, 1118774116, 111803791X, 978-1118037911

More Books

Students also viewed these Accounting questions

Question

Solve the following equation for > 2* = 16 O x= 1 Ox=2. x=4 > x=8

Answered: 1 week ago