Question
Question 1 : The following are some items for Walmart Company at December 31, 2018: Accounts Payable 14,500 Sales Revenue 29,000 Accounts Receivable 2,100 Marketable
Question 1: The following are some items for Walmart Company at December 31, 2018:
Accounts Payable
14,500
Sales Revenue
29,000
Accounts Receivable
2,100
Marketable Securities
9,000
Building
51,000
Vehicle
31,000
Cash
25,000
Note Payable
9,700
Supplies expenses
2,600
Salaries Expenses
10,200
Salaries Payable
12,800
Capital Stock
45,000
Total equity
60,000
Note Receivable
8,300
Utilities expenses
3,200
Tax
2,000
Inventories
5,000
COGS
20,000
Retained Earnings
???
Service revenues
5,000
Calculate the following ratios:
Working Capital, Current Ratio, Quick Ratio, Accounts Receivable Turnover Ratio, Inventory Turnover Ratio, and Return on Equity.
1-On average, how many days of sales were in Accounts Receivable during the year? On average, how many days of sales were in Inventory during the year?
2-Is it better for the company to increase the accounts receivable turnover rate or not? What about inventories turnover?
3-Using the previous ratio, what will be situation of liquidity of this company?
4-Calculate two ratios that can used to measure the firm's ability to meet its long-term obligations; and interpret your answer?
Question 2: What are the advantages & limitation of Ratio Analysis? Use yoyr own words.
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