AutoSave O OFF A A P . G ... AC PAINTERS_Ratio Calculations - Solvency v Q Home Insert Draw Page Layout Formulas Data Review View Acrobat ? Tell me Comments LE Share Insert v Arial v 11 AA ab v Number Ex Delete v v Z Paste BIU DV Av $ ~ % " Conditional Format Cell Sort & Find & Analyze Create and Share Formatting as Table Styles Format v v Filter Select Data Adobe PDF C38 X V fx A B C D E G H L M N 17 18 AC Painters Ltd. 19 Balance Sheet as of December 31 20xx ($ thousands) 20 Assets Current Liabilities & Owner's Equity 21 Current Assets Current Liabilities 22 Cash 215 A/P 298 23 A/R 310 Notes payable 1,427 24 Inventory 328 Total CL 1,725 25 Total CA 853 26 LTD 2,308 27 28 Owners equity 29 Common stock and paid in surplus 1,000 30 Fixed Assets Retained earnings 2,347 31 Net plant and equipment 6,527 Total Equity 3,347 32 Total Assets $ 7,380 Total liabilities and owner's equity $ 7,380 33 34 35 Solvency Ratios Formula Value Calculation What does it measure? Interpretation Solvency Ratios Current Ratio =CA/CL 0.49 853 divided by 1725 Measures liquidity and efficiency ->not able to Less than 1-> Company is not able to cover its pay off its short term liabilities with CA (that CL with its CA. Might have to sell off long term Short Term Solvency (Liquidity) can convert to cash). revenue generating assets to cover CL 36 Current Ratio = CA / CL 37 Quick Ratio =(CA-Inv)/CL 0.30 853 minus 328 divided by 1725 Quick Ratio = (CA - Inv) / CL 38 Debt Ratio =TD/TA Long Term Solvency (Leverage) Equity Ratio =TE/TA 39 Debt Ratio = TD / TA Debt/Equity Ratio =TD/TE 40 Equity (Proprietor's) Ratio = TE / TA 41 42 TIE Ratio =EBIT/Interest Debt / Equity Ratio = TD/ TE 43 44 TIE Ratio = EBIT/Interest 45 46 47 48 49 50 51 52 53 54 55 56 57 Solvency Ratios (BLANK) + Normal Ready x Accessibility: Investigate + 100% 

 

AutoSave O OFF A A P . G ... AC PAINTERS_Ratio Calculations - Solvency v Q Home Insert Draw Page Layout Formulas Data Review View Acrobat ? Tell me Comments LE Share Arial v 11 AA =E ab v Number Insert v ZY Ap- O. Ex Delete v [ v Z Paste BIUV DVAv E $ ~ % " Conditional Format Cell Sort & Find & Analyze Create and Share Formatting as Table Styles Format v v Filter Select Data Adobe PDF C38 X V fx A B C D E G H L M N AC Painters Ltd. Income Statement ($ thousands) 20xx UI AWNI Sales $ 4,053 6 Cost of goods sold 2,780 7 Gross Profit ,273 8 Operating Expenses (inc Dep) 550 9 EBIT 723 10 Interest paid 502 11 EBT 221 12 Taxes 66 13 Net income $ 155 14 Addition to retained earnings 99 Dividends 56 16 17 18 AC Painters Ltd. 19 Balance Sheet as of December 31 20xx ($ thousands) 20 Assets Current Liabilities & Owner's Equity Current Assets Current Liabilities 22 Cash 215 A/P 298 23 A/R 310 Notes payable 1,427 24 Inventory 328 Total CL 1,725 25 Total CA 853 26 LTO 2,308 27 28 Owners equity 29 Common stock and paid in surplus 1,000 30 Fixed Assets Retained earnings 2,347 31 Net plant and equipment 6,527 Total Equity 3,347 32 Total Assets $ 7,380 Total liabilities and owner's equity 7,380 33 34 35 Solvency Ratios Formula Value Calculation What does it measure? Interpretation Solvency Ratios Current Ratio =CA/CL 0.49 853 divided by 1725 Measures liquidity and efficiency ->not able to Less than 1-> Company is not able to cover its pay off its short term liabilities with CA (that CL with its CA. Might have to sell off long term Short Term Solvency (Liquidity) can convert to cash). revenue generating assets to cover CL 36 Current Ratio = CA / CL 37 Quick Ratio =(CA-Inv)/CL 0.30 853 minus 328 divided by 1725 Quick Ratio = (CA - Inv) / CL 38 Debt Ratio =TD/TA Long Term Solvency (Leverage) Equity Ratio =TE/TA 39 Debt Ratio = TD / TA 40 Debt/Equity Ratio =TD/TE Equity (Proprietor's) Ratio = TE / TA Solvency Ratios (BLANK) + Ready Accessibility: Investigate + 100% 

Calculate the Solvency Ratios.

The first ratio (current ratio) has been calculated for you.

Complete the other solvency ratios, along with an explanation.

AutoSave OFF Home Insert Draw Page Layout Paste E43 A Cut Copy Format Calibri (Body) BIU B fx Formulas Data Review View Acrobat Tell me 11 A A ab Wrap Text General A Merge & Center $ % 9 .00 0+ Normal Bad Conditional Format Formatting as Table Check Cell Explanatory T... C D E F G H 1 J K L M N 1 Problem 2 2 3 4 5 The manager, Jenny provided you with the information of the expected availability of resources (e.g. funds, workers, supplies, approval of permits) for the jobs of another similar project to Problem 1 (a renovation rather than construction). Clearly, a job cannot start processing until after the resources needed are available. With the above understanding, the earliest dates for each job to start at are listed in Table 3. 6 7 Jenny designed her schedule for the project as shown in Table 4. Answer the following questions, Q1, and Q2:. 8 9 10 11 Table 3 Q1: Create the Gantt chart for Jenny based on Table 4. The origin of the time axis should be labeled as 3/1/2020. Immediatel Time needed 12 Job label Job description predecessor(s) (days) Earliest date to start at 13 A Select staff members 12 3/15/20 14 B Survey - 9 3/16/20 15 C Select equipment A 10 4/6/20 16 D Prepare final plan B 10 3/26/20 17 E Bring utilities to site B 24 4/1/20 18 F Interview applicants A 10 3/26/20 19 G Purchase/deliver equipment C 35 4/9/20 20 H Renovation D 40 4/5/20 21 1 Update infomation system A 15 3/26/20 22 J Install equipment E, G, H 4 23 K Train new staff F, I, J 6 5/15/20 5/23/20 24 25 26 27 28 29 Table 4-Jenny's schedule P Q R 3/27/20 Q2: To ensure everything is correct, you review Jenny's schedule for any dates in Table 4 that appear to be infeasible. Since Jenny already announced the finish date of the project based on her schedule, you would try not to change this finish date. That is, if you don't see any issue with Jenny's schedule after your review, there is no need to change anything. Otherwise, you will need to reschedule the project. In this case, you will make the finish date of the project as close to Jenny's as possible. So, what is the finish date of the project after your review? 30 Job label Job description Start date End date 31 A Select staff members 3/15/20 32 B Survey 3/16/20 3/25/20 33 C Select equipment 4/6/20 4/16/20 34 D Prepare final plan 3/26/201 4/5/20 35 E Bring utilities to site 4/1/20 4/25/20 36 F Interview applicants 3/28/20 4/7/201 37 G Purchase/deliver equipment 4/11/20 5/16/20 38 H Renovation 4/5/20 5/15/20 39 Update infomation system 3/30/20 4/14/20 40 J Install equipment 5/16/20 5/20/20 41 K Train new staff 5/22/20 5/28/20 42 43 44 45 46 47 48 49 50 51 52 mm/dd/yyyy Show your schedule including start and end dates for each job, IF you change Jenny's schedule. As