Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use only the following link for source of information:https://www.sec.gov/Archives/edgar/data/104169/000010416920000011/wmtform10-kx1312020.htm Most of the information you will need will be found on the balance sheet and income

Use only the following link for source of information:https://www.sec.gov/Archives/edgar/data/104169/000010416920000011/wmtform10-kx1312020.htm

Most of the information you will need will be found on the balance sheet and income statement which you can quickly access via hyperlinks in the table of contents. However, you may need information included in the footnotes, located after the financial statements, or in the management's discussion and analysis section.

Refer to this Summary of Analytical Measures table

image text in transcribed
Liquidity Measures Method of Computation Use Working Capital Current Assets - Current Liabilities Current Assets Measures the company's ability to pay Current Ratio current liabilities. Current Liabilities Quick Assets Measures the company's instant Quick Ratio Current Liabilities debt-paying ability. Accounts Receivable Sales Turnover Average Accounts Receivable Measures the company's efficiency in collecting receivables and in the Numbers of Days' Sales in Average Accounts Receivable management of credit. Receivables Average Daily Sales Cost of Goods Sold Inventory Turnover Average Inventory Measures the company's efficiency in Number of Days' Sales in Average Inventory managing inventory. Inventory Average Daily Cost of Goods Sold Solvency Measures Ratio of Fixed Assets to Fixed Assets (net) Measures the margin of safety available to Long-Term Liabilities Long-Term Liabilities long-term creditors Ratio of Liabilities to Total Liabilities Measures how much of the company is Stockholders Equity Total Stockholders Equity financed by debt and equity. Income Before Income Tax + Interest Expense Measures the risk that interest payments Times Interest Earned will not be made if earnings decrease. Interest Expense Profitability Measures Asset Turnover Sales Measures how effectively a company uses Average Total Assets its assets. Net Income + Interest Expense Measures the profitability of a company's Return on Total Assets Average Total Assets assets. Return on Net Income Measures the profitability of the investment Stockholders' Equity Average Total Stockholders Equity by stockholders. Return on Common Net Income - Preferred Dividends Stockholders' Equity Average Common Stockholders' Equity Measures the profitability of the investment Earnings per Share (EPS) Net Income - Preferred Dividends by common stockholders. on Common Stock Shares of Common Stock Outstanding Market Price per Share of Common Stock Measures future earnings prospects, based Price-Earnings (P/E) Ratio on the relationship between market value Earnings per Share on Common Stock of common stock and earnings. Dividends on Common Stock Measures the extent to which earnings are Dividends per Share Shares of Common Stock Outstanding being distributed to common stockholders. Dividends per Share of Common Stock Dividend Yield Measures the rate of return to common Market Price per Share of Common Stock stockholders in terms of dividends

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

Foundations Of Finance

Authors: Arthur Keown, John Martin, J. Petty

10th Edition

0136102654, 9780136102656

More Books

Students also viewed these Accounting questions

Question

Discuss common reasons for committing a fraud against an employer.

Answered: 1 week ago