Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Need 5,6,7 number question answer just... # 03 The information below is taken from the records of two companies in the same industry. The companies

image text in transcribedNeed 5,6,7 number question answer just...

# 03 The information below is taken from the records of two companies in the same industry. The companies are X Ltd. And Y Ltd. And the data is as follows Particulars Cash Debtors (net) Inventory Plant & equipment TOTAL ASSETS Sundry creditors 8% Debentures Equity Retained earnings TOTAL LIABILITIES Sales Cost of goods sold Other operating expenses Interest expenses Income taxes Dividends X Ltd Y Ltd. (TAKA) (TAKA) 210,000.00 320,000.00 330,000.00 630,000.00 1,230,000.00 950,000.00 1,695,000.00 2,400,000.00 3,465,000.00 4,300,000.00 900,000.00 1,050,000.00 500,000.00 1,000,000.00 1,100,000.00 1,750,000.00 965,000.00 500,000.00 3,465,000.00 4,300,000.00 5,600,000.00 8,200,000.00 4,000,000.00 6,480,000.00 800,000.00 860,000.00 40,000.00 80,000.00 266,000.00 273,000.00 100,000.00 180,000.00 Answer the following questions by making a comparison of one or more relevant ratios Marks 18 1. Which company is using the equity shareholders' money more profitably? 2. Which company is better able to meet current debts? 3. If you were to purchase the debentures of one company, which company's debenture would you buy? 4. Which company collects its receivables faster, assuming all sales to be credit sales. 5. Which company is extended credit for a longer period by the creditors, assuming all purchases (equivalent to COGS) to be credit purchase? 6. How long does it take each company to convert an investment in stock to cash? 7. Which company retains the larger portion of income in the business

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

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

Intermediate Accounting

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

11th Edition

0471448966, 978-0471448969

More Books

Students also viewed these Accounting questions

Question

7 Name at least three selection methods.

Answered: 1 week ago

Question

9 What is meant by the processual approach?

Answered: 1 week ago