Question
Please answer the 5 parts of the 10k- questions I have You will need to copy this link and paste it into the google search
Please answer the 5 parts of the 10k- questions I have
You will need to copy this link and paste it into the google search bar and click search:https://www.sec.gov/ix?doc=/Archives/edgar/data/0001158449/000115844921000036/aap-20210102.htm
Once you copied this link into Google and hit search It will directly lead you to the 10-k Annual form report for advanced auto parts inc. On the top of the 10-k form, it will say Jan 2nd, 2021.
Then you will be able to answer the following questions using the information from the 10k report. You will use that information to answer the questions below I have written out. Answers must be thought out.Yes, or No is not an acceptable answer.
For each question provide a page number or cite the page number of where you found the answer to each of the induvial questions or where you got the numbers from.
Part 1
1. Calculate the current ratio for the past two years. Did the current ratio improve or weaken in the more recent year?
2. Calculate the acid-test (quick) ratio for the past two years. Did the acid-test ratio improve or weaken in the more recent year?
3. If the company purchased $50 million of inventory by debiting inventory and crediting accounts payable, how would its current ratio and acid-test ratio change? Show your calculations.
Part 2
1. Calculate the debt to equity ratio for the past two years. Did the ratio improve or weaken in the more recent year?
2. Calculate the times interest earned ratio for the past two years. Did the ration improve or weaken in the most recent year?
3. Based on the calculations in questions 1 and 2 how would you rate the bankruptcy risk of the company?
Part 3
1. What is the par value per share for the common stock?
2. How many shares of common stock are authorized? How many shares were issued? How many shares were outstanding? Explain what the terms authorized, issued, and outstanding mean?
3. Did the company have any treasury stock? How many shares?
4. How much did the company pay dividends in the most recent year? Where did you find this information?
Part 4
1. What was the amount of increase or decrease in cash and cash equivalents for the most recent year?
2. What was net cash from operating activities for the most recent year? Is net cash from operating activities increasing each year? What is the largest reconciling item between net income and net operating cash flows during the most recent year?
3. What was net cash from investing activities for the most recent year? Is it positive or negative? What is the largest investing activity during the most recent year?
4. What was net cash from financing activities for the most recent year? Is negative financing activities a good sign or a bad sign? What is the largest financing activity during the most recent year?
Financial Ratios
1. Compute the ratios titled Profitability Analysis attached to these project guidelines for current year. Use the chart below. Show all work - plug in the numbers in the formula then compute the answer.
Measures of Profitability | Current Year | |
Gross Profit percentage | Gross Profit/Net Sales | |
Return on Sales | Net Income/Net Sales | |
Return on Assets | Net Income/Total Assets | |
Return on Equity | Net Income/Stockholders' Equity |
2. Compute the Liquidity Analysis, Solvency Analysis, and Ratios for Common Stockholders attached to these project guidelines for current year. Use the chart below. Show all work - plug in the numbers in the formula then compute the answer.
Short Term Liquidity Analysis | Current Year | |
Current Ratio | Current Assets/Current Liabilities | |
Quick Ratio | (Cash + ST Investments + Accounts Receivable)/Current Liabilities | |
Receivables Turnover | Net Sales/Accounts Receivable | |
Avg. Collection Period | 365/Receivables Turnover | |
Inventory Turnover | Cost of Goods Sold/Inventory | |
Day Sales in Inventory | 365/Inventory Turnover | |
Long Term Solvency Analysis | ||
Debt to Equity Ratio | Total Liabilities/Total Equity | |
Times Interest Earned Ratio | (Net Income + Interest Expense + Income Tax Expense)/Interest Expense | |
Financial Ratios for Common Stockholders | ||
Earnings Per Share | Net Income/Weight Avg. Shares Outstanding | |
Price Earnings Ratio | Market Price Per Share/Earnings Per Share | |
Dividend Yield | Annual Dividend Per Share/Market Price Per Share |
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