Selected data from Tang Furniture, Inc., follows:
Data Table 2015 2016 2017 2018 Selected balance sheet data $ 3,600 4,000S 5,200 700 base Cash. .._ 1,000 1,100 7.400 7,100 5,100 $ 4,000 6,700 4,700 3900 3800 18,700 16,900 14,900 7,800 9,300 10,100 26,500 26,200 25,000 Total current assets Long-term assets 3,000 2200 ,800 2200 7.300 6,500 6,150 10,500 8,300 7,400 Accounts payable. Short-term notes payable. Total current liabilities 7,728 455 3,265 lig Done Print ty har in the innut fields and then continue to the next question. Data Table Selected income statement data Net sales revenue (assume all sales are credit sales) . . . Cost of goods sold. Operating expenses 2018 2017 2016 2015 39,300 $ 38,200 $ 37,100 $ 36,700 22,700 19,840 17,880 12,800 13,700 14,000 420 1,118 205 335 Income taxes 410 1,059 Print Done or Data Table g 201 Furniture industry averages is d r th (Rd 2 2.3 1.0 81.7 45.8 32.8 70% 22.3 48% 11% Days' inventory outstanding. . . Days' sales outstanding . .. . Days' payable outstanding. . . . abl e is les Gross margin percentage . Operating income percentage .. . lowing Print Done rag fitab Requirements he 1. Perform a trend analysis on Tang's sales revenue, inventory, and receivables over the past three years, using 2015 as the base. Is the trend in each of these areas favorable or unfavorable for the company? 2. Using the industry averages as benchmarks, analyze Tang's performance over the past three years in the following areas a. Liquidity c.Overall debt payment ability b. Turnover d. Profitability 3. Evaluate Tang's quality of eamings. Are there any red flags in your analysis? Explain. an Print Done overall debt payment ability, and d) profitability a. Start by analyzing the liquidity ratios: the current ratio and the quick ratio. Select the formula and enter the amounts to calculate the current ratios for the years 2016 through 2018. (Round the ratios to two decimal places, Xxx) Current ratio 2018 2017 2016 Selected data from Tang Furniture, Inc., follows (click the icon to view selected balance sheet data Click the on to view selected income statement data Industry averages have been gathered for several ratios. EEE (Click the icon to view the ratios.) Read the requirements Next, select the formula and enter the amounts to calculate the quick (acid-test) ratios for the years 2016 through 2018. (Abbreviations used: Cash cash and cash equivalents, SE-stockholders' equity, and ST short-term. Round the ratios to two decimal places, X.XX.) )1 )1 Quick ratio 2018 2017 ( 2016 b. Analyze the turnover ratios: inventory turnover and days' inventory outstanding, accounts receivable turnover, days' sales outstanding, accounts payable turnover )1 days' payables outstanding, and cash conversion cycle Select the formula and enter the amounts to calculate the inventory turnover for the years 2016 through 2018 Round the ratios to two decimal places XX Inventory turnover 2018 2017 2016 Selected data from Tang Furniture, Inc., follows. B(Click the icon to view selected balance shoot data.)EClick the icon to view selected income statement data.) Industry averages have been gathered for several ratios. EEB (Click the icon to view the ratios.) Read the teauirements Select the formula and enter the amounts to calculate days inventory outanding (DIO) for the years 2016 through 2018. (Enter formula ratios to two decimal places, x.xx. use a 365-day year. Round the DIO to one decimal place, XX.) Days' inventory outstanding (DIO) 2018 2017 2016 Select the formula and enter the amounts to calculate the accounts receivable turnover for the years 2016 through 2018. (Round the ratios to two decimal places Accounts receivable turnover 2018 2017 2016 Selected data from Tang Funiture, Inc., follows. EEE (Click the icon to view selected balance sheet data.) EE(Click the icon to view selected income statement data.) Industry averages have been gathered for several ratios. (Click the icon to view the ratios) Read the fequirements Select the formula and enter the amounts to calculate days' sales outanding (DSO) for the years 2016 through 2018.(Use a 365-day year. Round the DSO to one decimal place, X.X) Days' sales outstanding (DSO) or 2018 2017 2016 Select the formula and enter the amounts to calculate the accounts payable tunover for the years 2016 through 2018. (Round the ratios to bwo decimal places, XXXx) Accounts payable tunover 2018 2017 2016 tp Selected data from Tang Furniture, Inc., follows. EB (Click the icon to view selected balance sheet data.) EE Click the icon to view selected income statement data.) Industry averages have been gathered for several ratios. EEB (Click the icon to view the ratios.) Read the feauirements. Select the formula and enter the amounts to calculate days' payables outanding (DPO) for the years 2016 through 2018. (Use a 365-day year. Round the DPO to one decimal place, ..) Days' payables outstanding (DPO) 2018 2017 2016 Select the formula and enter the amounts to calculate the cash conversion cycle (in days) for the years 2016 through 2018. (Enter all amounts to one decimal place x.x.) -Cash conversion cycle 2018 2017 2016 K. Decreasing gross margirn Requirement 3. Evaluate Tang's quality of earnings. Are there any red flags in your analysis? Explain. First, select the formula and enter the amounts to calculate the net income percentage ratios for years 2016 through 2018. (Round the ratios to one-tenth percent, XX%.) Net income % 2018 2017 2016 Refer to the quality of earmings ratios you calculated in Requirements 2 and 3 and evaluate Tang's quality of eamings. Are there any red fags in your analysis? Explain. Quality of eamings is All the ratios are Choose from any list or enter any number in the input fields and then continue to the next question. Data Table 2015 2016 2017 2018 Selected balance sheet data $ 3,600 4,000S 5,200 700 base Cash. .._ 1,000 1,100 7.400 7,100 5,100 $ 4,000 6,700 4,700 3900 3800 18,700 16,900 14,900 7,800 9,300 10,100 26,500 26,200 25,000 Total current assets Long-term assets 3,000 2200 ,800 2200 7.300 6,500 6,150 10,500 8,300 7,400 Accounts payable. Short-term notes payable. Total current liabilities 7,728 455 3,265 lig Done Print ty har in the innut fields and then continue to the next question. Data Table Selected income statement data Net sales revenue (assume all sales are credit sales) . . . Cost of goods sold. Operating expenses 2018 2017 2016 2015 39,300 $ 38,200 $ 37,100 $ 36,700 22,700 19,840 17,880 12,800 13,700 14,000 420 1,118 205 335 Income taxes 410 1,059 Print Done or Data Table g 201 Furniture industry averages is d r th (Rd 2 2.3 1.0 81.7 45.8 32.8 70% 22.3 48% 11% Days' inventory outstanding. . . Days' sales outstanding . .. . Days' payable outstanding. . . . abl e is les Gross margin percentage . Operating income percentage .. . lowing Print Done rag fitab Requirements he 1. Perform a trend analysis on Tang's sales revenue, inventory, and receivables over the past three years, using 2015 as the base. Is the trend in each of these areas favorable or unfavorable for the company? 2. Using the industry averages as benchmarks, analyze Tang's performance over the past three years in the following areas a. Liquidity c.Overall debt payment ability b. Turnover d. Profitability 3. Evaluate Tang's quality of eamings. Are there any red flags in your analysis? Explain. an Print Done overall debt payment ability, and d) profitability a. Start by analyzing the liquidity ratios: the current ratio and the quick ratio. Select the formula and enter the amounts to calculate the current ratios for the years 2016 through 2018. (Round the ratios to two decimal places, Xxx) Current ratio 2018 2017 2016 Selected data from Tang Furniture, Inc., follows (click the icon to view selected balance sheet data Click the on to view selected income statement data Industry averages have been gathered for several ratios. EEE (Click the icon to view the ratios.) Read the requirements Next, select the formula and enter the amounts to calculate the quick (acid-test) ratios for the years 2016 through 2018. (Abbreviations used: Cash cash and cash equivalents, SE-stockholders' equity, and ST short-term. Round the ratios to two decimal places, X.XX.) )1 )1 Quick ratio 2018 2017 ( 2016 b. Analyze the turnover ratios: inventory turnover and days' inventory outstanding, accounts receivable turnover, days' sales outstanding, accounts payable turnover )1 days' payables outstanding, and cash conversion cycle Select the formula and enter the amounts to calculate the inventory turnover for the years 2016 through 2018 Round the ratios to two decimal places XX Inventory turnover 2018 2017 2016 Selected data from Tang Furniture, Inc., follows. B(Click the icon to view selected balance shoot data.)EClick the icon to view selected income statement data.) Industry averages have been gathered for several ratios. EEB (Click the icon to view the ratios.) Read the teauirements Select the formula and enter the amounts to calculate days inventory outanding (DIO) for the years 2016 through 2018. (Enter formula ratios to two decimal places, x.xx. use a 365-day year. Round the DIO to one decimal place, XX.) Days' inventory outstanding (DIO) 2018 2017 2016 Select the formula and enter the amounts to calculate the accounts receivable turnover for the years 2016 through 2018. (Round the ratios to two decimal places Accounts receivable turnover 2018 2017 2016 Selected data from Tang Funiture, Inc., follows. EEE (Click the icon to view selected balance sheet data.) EE(Click the icon to view selected income statement data.) Industry averages have been gathered for several ratios. (Click the icon to view the ratios) Read the fequirements Select the formula and enter the amounts to calculate days' sales outanding (DSO) for the years 2016 through 2018.(Use a 365-day year. Round the DSO to one decimal place, X.X) Days' sales outstanding (DSO) or 2018 2017 2016 Select the formula and enter the amounts to calculate the accounts payable tunover for the years 2016 through 2018. (Round the ratios to bwo decimal places, XXXx) Accounts payable tunover 2018 2017 2016 tp Selected data from Tang Furniture, Inc., follows. EB (Click the icon to view selected balance sheet data.) EE Click the icon to view selected income statement data.) Industry averages have been gathered for several ratios. EEB (Click the icon to view the ratios.) Read the feauirements. Select the formula and enter the amounts to calculate days' payables outanding (DPO) for the years 2016 through 2018. (Use a 365-day year. Round the DPO to one decimal place, ..) Days' payables outstanding (DPO) 2018 2017 2016 Select the formula and enter the amounts to calculate the cash conversion cycle (in days) for the years 2016 through 2018. (Enter all amounts to one decimal place x.x.) -Cash conversion cycle 2018 2017 2016 K. Decreasing gross margirn Requirement 3. Evaluate Tang's quality of earnings. Are there any red flags in your analysis? Explain. First, select the formula and enter the amounts to calculate the net income percentage ratios for years 2016 through 2018. (Round the ratios to one-tenth percent, XX%.) Net income % 2018 2017 2016 Refer to the quality of earmings ratios you calculated in Requirements 2 and 3 and evaluate Tang's quality of eamings. Are there any red fags in your analysis? Explain. Quality of eamings is All the ratios are Choose from any list or enter any number in the input fields and then continue to the next
