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Two questions below need answers. In Chapter 17 we covered financial statement analysis. Financial statement analysis is one of the key factors potential investors use
Two questions below need answers.
In Chapter 17 we covered financial statement analysis. Financial statement analysis is one of the key factors potential investors use to evaluate investment decisions. Consider the following fictitious company's financial ratios for the past 3 years: Ratio 2020 2018 1.8 2019 1.6 .80 Current Ratio Quick Ratio 1.1 .89 .75 A/R Turnover 13 11.8 11 8.5 7.5 7.2 .70 .60 55 1.8 1.5 1.4 2.1 3.2 3.5 Inventory Turnover Total Asset Turnover Debt-to-Equity Times Interest Earned Profit Margin Ratio Gross Profit Ratio Retum on Assets Retum on Equity 3.8% 5% 31% 4.1% 32% 4.5% 33% 4.8% 4% 14% 13% 12% Directions Be sure to read all directions prior to engaging with this activity. 1. For this discussion board, I would like you to comment on how you think this company is performing relative to liquidity/efficiency, solvency, and profitability. Take note of trends and indicate if you think the trends are good or bad. Lastly, state whether you would recommend investing or not investing in this company. Ed Vedder Co installed a new piece of equipment in its factory. The equipment had an invoice price of $100,000 and sales tax of 5%. Installation costs totaled $10,000. Delivery costs to get the equipment to the factory were $500. The cost of repairs to fix the equipment after an installation mishap totaled $1,100. Determine the total cost of the machine that would show up on the company's balance sheet. Total acquisition cost (1)Step by Step Solution
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