Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

this question must be answered in excel form please. Below is a listing of financial data from FB Ltd's balance sheet for the current year,

image text in transcribed
this question must be answered in excel form please.
Below is a listing of financial data from FB Ltd's balance sheet for the current year, 2020, as well as the previous year, 2019 December 31, December 31, 2020 2019 Cash $ 87,000 92,210 Accounts Receivable 265,000 219.950 Prepaid expenses 48,000 39,840 Inventory 126,000 104,580 Property Plant & Equipment (net) 474,000 393,420 Accounts Payable 320,000 255,600 Current portion of long-term debt 20,000 16,600 Long term debt 200,000 166,000 Share capital 60,000 49,800 Retained Earnings 400,000 362,000 Below is a listing of financial data from FB Ltd.'s income statement for the current year, 2020, as well as the previous year, 2019 Year ending Year ending December 31, December 31, 2020 2019 Revenue 1,200,000 1,000,000 Operating Expenses 720,000 650,000 Interest Expense 12,000 10,800 Net Income before tax 468,000 339,200 Income tax expense 187,200 135,680 Net Income 280,800 203,520 Required: Calculate the following ratios based on the data above (round to 4 decimal places and show your work) a) Calculate FB Lid's quick ratio for 2019 and 2020. (2marks) b) Based on your answers from (a) what can you say about FB Ltd.'s liquidity? ( 2 marks) c) What is FB Lidi's Days sales in Accounts Receivable for 2020? (use 365 days) (1 mark) d) What is FB Ltd.'s Return on Equity for 2020? (1 mark)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Fundamentals Of Corporate Finance

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

5th Edition

0135811600, 978-0135811603

Students also viewed these Accounting questions

Question

How can the explanatory variables be checked for collinearity?

Answered: 1 week ago