Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What is the major driver of the company's returnon assets? Condensed statements of hnandar positoor and statement of income data for Pronghorn Ltd are shown

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
What is the major driver of the company's returnon assets? Condensed statements of hnandar positoor and statement of income data for Pronghorn Ltd are shown below: PRONGHORNLTD. Statement of Financial Position December 31 [in thousands) 202120202019 Assets Current assets Cash Accounts receivable Inventory Total current assets \begin{tabular}{rrrr} $30 & $80 & $200 \\ 900 & 700 & 500 \\ 2,1301,200 & 1,580800 & 1,200500 \\ \hline 4,100 & 562303,800 & $5,380 & $4,400 \\ \hline \end{tabular} Liabilities and Shareholders' Equity Babilities Current liabilities What strategy pertaining to leverake has the company pursued? is the company more or less solvent in 2021 than it was in 2019 ? Why has the payout ratio changed? Do you think that the dividend payout has affected the company s liquidity? Why or why not? Why has the papout ratio changed? Do you think that the ofvidend pavout has affected the company's liquidity? Why or why not? What is the mupor driver of the cumbarrs returnon assets? Assume that common shareholders equity at the end of 2018 was equal to the amount for 2019 . Why is the return on coenmon shareholders' equity different from the return on assets? Wiry does the difference between these two ratios change? Why has the profit margin ratio changed over the three years? Incorporate in your answer any conclusions you made when analyzine the cross profit margin in part (b) above. The costs paid for ieventary purchased from suppliers have changed tittle over the three vears but there is significant competition in the industry. How has this affected the gross profit ratio? Cornment on whether the company's overall liquidity has imgroved or worsened over this three-vear period and support your explanation by relating the results of the furnover ratios to the current ratio

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

Intermediate Accounting Volume 2

Authors: Thomas Beechy, Joan Conrod, Elizabeth Farrell, Ingrid McLeod-Dick

7th Edition

1259108023, 9781259108020

More Books

Students also viewed these Accounting questions