Question
The condensed financial statements of the Lavender Companies, Inc. for the years ended June 30, 2021 and 2020 are presented as follow: Lavender Companies, Inc
The condensed financial statements of the Lavender Companies, Inc. for the years ended June 30, 2021 and 2020 are presented as follow:
Lavender Companies, Inc Balance Sheets June 30 (in millions)
| 2021 | 2020 |
Assets Current assets Cash and cash equivalents Account Receivables (net) Inventories Prepaid expenses and other current assets Total current assets Property, plant and equipment (net) Investments Intangibles and other assets Total assets |
RM546.9 624.8 544.5 211.4 1,927.6 580.7 30.3 877.9 RM3,416.5
|
RM346.7 580.6 630.3 181.3 1,738.9 528.7 41.0 910.2 RM3,218.8 |
Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Stockholders' equity common Total liabilities and stockholders' equity |
RM959.6 635.0 1,821.9 RM3,416.5 |
RM856.7 650.0 1,712.1 RM3,218.8
|
Lavender Companies, Inc Income Statements For the year ended June 30 (in millions)
| 2021 | 2020 |
Revenues Cost and expenses Cost of goods sold Selling and administrative expenses Interest expense Total costs and expenses Pretax income Income taxes Net income | RM4,751.5
1,273.4 3,133.6 17.6 4,424.6 326.9 114.4 RM212.5 | RM4,682.1
1,226.4 2,947.6 26.7 4,200.7 481.4 174.0 RM307.4 |
Analyse Lavender's financial statements. Include computation of the following ratios for 2020 and 2021 and comparisons of these ratios in your discussion.
- Current ratio
- Inventory turnover (Inventory on June 30 2019 was RM546.3)
- Return on assets (Assets on June 30 2019 were RM3,043.3)
- Return on common stockholders' equity
- Debt to total asset ratio
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started