Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help with just f to h Expert G8A a) Generate the common-size income statement for 2018. b) For the asset side of the balance

please help with just f to h image text in transcribed
Expert G8A a) Generate the common-size income statement for 2018. b) For the asset side of the balance sheet create the common-size statement for 2018 and 2017 c) Generate the 2018 cash-flow statement for Autocanada Inc. d) Calculate cash-flow from assets, cash-flow to debtholders, and cash-flow to equity holders. Does the cash-flow identity hold? e) Calculate the following financial ratios for Autocanada Inc. i. Current ratio ii. Quick ratio ili. Return on assets lli. Debt-to-equity ratio Equity multiplier v Total Asset Turnover v. Profit Margin vili. Times interest earned ratio ix. ROE use DuPont f) If Autocanada Inc. pays its suppliers timelier in 2019, what will happen to its current ratio? Explain! g) If, in 2019, Autocanada Inc. implements a new inventory management system, which reduces the time goods stay in inventory, what will happen to its quick ratio? Explain! h) If Autocanada Inc. takes on more debt, what will happen to its times interest earned ratio? Explain! Consider the 2018 Annual Report to Shareholders. balance sheet and income statement from Autocanada Inc.'s Income Statement 2018 (CS in millions) Balance Sheet (C$ in millions) 2018 2017 Cash Short-term investments Accounts receivable 662.1 900.6 96.1 5,790.5 1,905.1 289.1 Revenue 785.7 COGS 12.279.6 8,144.3 1.773.3 S&A Total Current Assets Fixed Assets Total Assets 8,6923 8,510.2 Depreciatioe 6,295.5 6,043.0 EBIT 14,987.8 14,5532 Interest 92.8 EB 3.9 3,1322Taxes 829.9 1.446.6 Net Income Accounts payable Notes payable Total Current Liabilities Long-term debt Total Liabilities Owner's Equity Retained Earnings 735.9 5.314.34,343.6 9,198.1 8,9224 1.617.7 .555.7 4,172.04,075. 14,987.8 14,553.2

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

Financial Accounting Study Guide

Authors: Jerry J. Weygandt ,Donald E. Kieso ,Paul D. Kimmel

4th Edition

0471205117, 978-0471205111

More Books

Students also viewed these Accounting questions

Question

e. What do you know about your ethnic background?

Answered: 1 week ago

Question

b. Why were these values considered important?

Answered: 1 week ago