Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Selected financial data for Changretta Inc. and Solomon Ltd. (in $thousands) are presented below. Changretta Inc Solomon Ltd. Statement of Comprehensive Income (Loss) Total revenue

image text in transcribedimage text in transcribed

Selected financial data for Changretta Inc. and Solomon Ltd. (in $thousands) are presented below. Changretta Inc Solomon Ltd. Statement of Comprehensive Income (Loss) Total revenue Cost of sales Gross profit Operating expenses Profit from operations Interest expense (revenue) Other expenses Other non-operating income Profit before income tax Income tax expense Profit $36.755 18.930 17.825 17.110 715 (36) 153 351 949 325 $624 $36,333 26.136 10.197 8.076 2.121 535 436 2.022 627 $1,395 Changretta Solomon Ltd. Inc. Balance Sheet Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities Shareholders' equity Total liabilities and shareholders' equity Additional information: Average accounts receivable Average inventories Average total assets Average total shareholders' equity $9.680 38,487 $48.167 $4.958 4.766 9,724 38,443 $48.167 $10,838 34,096 $44,934 $6,335 4,217 10.552 34,382 $44,934 $1,413 3.398 45,412 34.200 $6.179 3,676 45.651 33.447 For each company, calculate the following ratios: (Round answers to 1 decimal place, eg. 52.7 or 52.7%.) For each company, calculate the following ratios: (Round answers to 1 decimal place, eg. 52.7 or 52.7%.) Changretta Inc. Solomon Ltd. Liquidity Ratios 1. Current ratio 2. Receivables turnover 3. Inventory turnover Operating cycle times times times times days days Solvency Ratios 5. Debt to total assets Interest coverage 6. times times %6 96 8. % % Profitability Ratios 7. Gross profit margin Profit margin 9. Asset turnover Return on assets Return on equity times times 10. 96 96 11. % %

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

The Process Approach Audit Checklist For Manufacturing

Authors: Karen Welch

1st Edition

0873896440, 978-0873896443

More Books

Students also viewed these Accounting questions