Mastery Problems Financial Statement Analysis Liquidity and Solvency Measures Your friend, another accountant, has bet you that with your knowledge of accounting and just the computations for common analytical measures, you can figure out many aspects of a company's financial statements. You take the bett Match each computation to one of the liquidity and solvency measures in the table. (Mint Begin by looking for simple computations and identifying the amounts in those computation.com for other mesures that use those amounts) Liquidity and solvency Measures Computations Woning cap Current ratio Quick Accounts receivable turnover Number of days sales in receivables Inventory turnover Number of days' sales in inventory Ratio of assets to long-term lebites Ratio of is to stockholders' equity Times interest earned Halance Sheet Balance Sheet Use the following balance sheet form to enter amounts you identity from the computations on the liquidity and Solvency Mensures part. You will identify other amounts for the balare on the Profitability Measures part. If you have a choice of two amounts, assume the first amount in the ratio is for the end of the year. Compote any missing amounts Balance Sheet December 31, 2016 Assets Current assets Cash 5823.000 Marketable securities Accounts receivable (net) Inventory Prepaid expenses Total current assets Long-term investments Property, plant, and equipment (net) Total assets Liabilities Current liabilities Long-term liabilities Previous Next Total liabilities Stockholders' Equity Preferred stock, $10 par Common stock, $5 par Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Profitability Measures Match each computation to one of the profitability measures in the table. Profitability Measures Computations Asset turnover Return on total assets Return on stockholders' equity Return on common stockholders' equity Earnings per share on common stock Price-earnings ratio Dividends per share Dividend yield Use the following comparative income statement form to enter amounts you identity from the computations on the liquidity and Solvency Mesures part and on the Profitability Measures part. Computer any missing amounts and complete the homzontal analysis columns. Enter percentages as decimal amounts, rounded to one decimal place. When rounding, look only at the figure to the right of one decimal place. If <. round down and i up. for example enter comparative income statement the years ended december increase amount percentage sales cost of goods sold gross profit selling expenses administrative total operating other expense interest before tax net your accountant friend reveals that company whose information you have been working on is actually a compare thing investigative to rive wich ung only from hotel analysis complete following sentences horodicantly even though hoice however slowed in addition has made faster at camers based these observations do recent with stock mastery problems financial liquidity solvency measures another bet knowledge accounting just computations common analytical can figure out many aspects statements. take bett match each computation one table. begin by looking simple identifying amounts those computation.com mesures use woning cap current ratio quick accounts receivable turnover number days receivables inventory assets long-term lebites stockholders equity times earned halance sheet balance form identity mensures part. will identify balare profitability if choice two assume first end year. compote any missing cash marketable securities prepaid investments property plant equipment liabilities previous next preferred par retained earnings asset return per share price-earnings dividends dividend yield part computer homzontal columns. percentages as decimal rounded place. when rounding look right>
