Question
The Hill Company reported the following results: Year 3 Year 2 Year 1 Income Statement Revenue 10,972 11,598 10,470 Cost of Goods Sold 8,942 8,767
The Hill Company reported the following results:
Year 3 | Year 2 | Year 1 | |||
Income Statement | |||||
Revenue | 10,972 | 11,598 | 10,470 | ||
Cost of Goods Sold | 8,942 | 8,767 | 7,901 | ||
Selling, General & Admin. Expenses | 2,470 | 2,611 | 2,479 | ||
Interest expense | 76 | 80 | 28 | ||
Net Income | (516) | 140 | 62 | ||
Balance Sheet | |||||
Assets | |||||
Cash | 1,354 | 1,316 | 1,880 | ||
Prepaid expenses | 202 | 522 | 125 | ||
Accounts receivable | 375 | 250 | 231 | ||
Inventory | 745 | 698 | 455 | ||
Property & equipment (net) | 20,464 | 18,810 | 17,727 | ||
Total Assets | 23,140 | 21,596 | 20,418 | ||
Liabilities | |||||
Accounts payable | 2,824 | 743 | 678 | ||
Unredeemed gift cards | 410 | 850 | 636 | ||
Notes Payable | 15,457 | 18,048 | 17,024 | ||
Stockholders' Equity | |||||
Common Stock | 985 | 545 | 815 | ||
Retained Earnings | 3,464 | 1,410 | 1,265 | ||
Total Liabilities & Equity | 23,140 | 21,596 | 20,418 |
1. For a horizontal analysis, what is the percent change in revenues for year 3? Convert your final answer to a percentage, round to one decimal place and enter without the "%" sign (e.g. a final answer of 0.105678 would be entered as 10.6).
2. What is the company's current ratio for Year 2? Round your final answer to two decimal places.
3.Over the three year period, the company's current ratio is
A) getting better.
B) getting worse.
4. What is the company's days sales in inventory ratio for Year 2? Round your final answer to one decimal place.
5. What is the company's gross profit ratio for Year 3? Convert your final answer to a percentage, round to one decimal place and enter without the "%" sign (e.g. a final answer of 0.105678 would be entered as 10.6).
6.What is the company's return on investment ratio for Year 1? Convert your final answer to a percentage, round to one decimal place and enter without the "%" sign (e.g. a final answer of 0.105678 would be entered as 10.6).
7. Based on the three years of data, the company's return on investment ratio has
A) improved.
B) worsened.
C) stayed the same.
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