Acc 205 week 5 exercise dissertation homework help

Acc 205 week 5 exercise dissertation homework help

Financial Ratios

Don't use plagiarized sources. Get Your Custom Essay on
Acc 205 week 5 exercise dissertation homework help
Our work is always; • #Top-Quality • #Plagiarism-free
Order Essay

Please complete each of the exercises below in a word document. Save the document, and submit to in week using the Assignment Submission button.

Week Five Exercise Assignment

Financial Ratios

1. Liquidity ratios. Edison, Stagg, and Thornton have the following financial information at the close of business on July 10:

Edison

Stagg

Thornton

Cash

$6,000

$5,000

$4,000

Short-term investments

3,000

2,500

2,000

Accounts receivable

2,000

2,500

3,000

Inventory

1,000

2,500

4,000

Prepaid expenses

800

800

800

Accounts payable

200

200

200

Notes payable: short-term

3,100

3,100

3,100

Accrued payables

300

300

300

Long-term liabilities

3,800

3,800

3,800

  1. Compute the current and      quick ratios for each of the three companies. (Round calculations to two      decimal places.) Which firm is the most liquid? Why?

2. Computation and evaluation of   activity ratios. The following data relate to Alaska Products, Inc:

20X5

20X4

Net   credit sales

$832,000

$760,000

Cost   of goods sold

530,000

400,000

Cash,   Dec. 31

125,000

110,000

Average   Accounts receivable

205,000

156,000

Average   Inventory

70,000

50,000

Accounts   payable, Dec. 31

115,000

108,000

Instructions

a. Compute the accounts receivable and inventory turnover ratios for   20X5. Alaska rounds all calculations to two decimal places.

3. Profitability ratios, trading on the equity. Digital Relay has both preferred and common stock outstanding. The com­pany reported the following information for 20X7:

Net sales

$1,750,000

Interest expense

120,000

Income tax expense

80,000

Preferred dividends

25,000

Net income

130,000

Average assets

1,200,000

Average common stockholders’   equity

500,000

  1. Compute the profit      margin on sales ratio, the return on equity and the return on assets,      rounding calculations to two decimal places.
  2. Does the firm have      positive or negative financial leverage? Briefly ex­plain.

4. Horizontal analysis. Mary Lynn Corporation has   been operating for several years. Selected data from the 20X1 and 20X2   financial statements follow.

20X2 

20X1

Current Assets

$86,000

$80,000

Property, Plant, and Equipment   (net)

99,000

90,000

Intangibles

25,000

50,000

Current Liabilities

40,800

48,000

Long-Term Liabilities

153,000

160,000

Stockholders’ Equity

16,200

12,000

Net Sales

500,000

500,000

Cost of Goods Sold

322,500

350,000

Operating Expenses

93,500

85,000

a. Prepare a horizontal analysis for 20X1 and 20X2. Briefly comment   on the results of your work.

5.Vertical analysis. Mary Lynn Corporation has been operating for several years. Selected data from the 20X1 and 20X2 financial statements follow.

20X2 

20X1

Current Assets

$86,000

$80,000

Property, Plant, and Equipment (net)

99,000

80,000

Intangibles

25,000

50,000

Current Liabilities

40,800

48,000

Long-Term Liabilities

153,000

150,000

Stockholders’ Equity

16,200

12,000

Net Sales

500,000

500,000

Cost of Goods Sold

322,500

350,000

Operating Expenses

93,500

85,000

a. Prepare a vertical analysis for 20X1 and 20X2. Briefly comment on the results of your work.

6. Ratio computation. The financial statements of the Lone   Pine Company follow.

LONE PINE COMPANY

Comparative Balance Sheets

December 31, 20X2 and 20X1   ($000 Omitted)

20X2

20X1

Assets 

Current Assets 

Cash and Short-Term Investments

$400

$600

Accounts Receivable (net)

3,000

2,400

Inventories

3,000

2,300

Total Current Assets

$6,400 

$5,300   

Property, Plant, and Equipment 

Land

$1,700

$500

Buildings and Equipment (net)

1,500

1,000

Total Property, Plant, and Equipment

$3,200 

$1,500   

Total Assets 

$9,600 

$6,800   

Liabilities and Stockholders’   Equity 

Current Liabilities 

Accounts Payable

$2,800

$1,700

Notes Payable

1,100

1,900

Total Current Liabilities

$3,900

$3,600

Long-Term Liabilities 

Bonds Payable

4,100

2,100

Total Liabilities

$8,000 

$5,700   

Stockholders’ Equity 

Common Stock

$200

$200

Retained Earnings

1,400

900

Total Stockholders’ Equity

$1,600 

$1,100   

Total Liabilities and Stockholders’ Equity

$9,600 

$6,800   

LONE PINE COMPANY

Statement of Income and   Retained Earnings

For the Year Ending December   31,20X2 ($000 Omitted)

Net Sales*

$36,000

Less: Cost of Goods Sold

$20,000

Selling Expense

6,000

Administrative Expense

4,000

Interest Expense

400

Income Tax Expense

2,000

32,400

Net Income

$3,600

Retained Earnings, Jan. 1

900

Ending Retained Earnings

$4,500

Cash Dividends Declared and Paid

3,100

Retained Earnings, Dec. 31

$1,400

*All sales are on account.

Instructions 

Compute the following items for Lone Pine Company for 20X2, rounding all calcu­lations to two decimal places when necessary:

a. Quick ratio

b. Current ratio

c. Inventory-turnover ratio

d. Accounts-receivable-turnover ratio

e. Return-on-assets ratio

f. Net-profit-margin ratio

g. Return-on-common-stockholders’ equity

h. Debt-to-total assets

i. Number of times that interest is earned

Place Your Order
(275 Words)

Approximate Price: $9

Calculate the price of your order

275 Words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total Price:
$9
The price is based on these factors:
Academic Level
Number of Pages
Urgency
Principle features
  • Free cover page and Reference List
  • Plagiarism-free Work
  • 24/7 support
  • Affordable Prices
  • Unlimited Editing
Upon-Request options
  • List of used sources
  • Anytime delivery
  • Part-by-part delivery
  • Writer’s sample papers
  • Professional guidance
Paper formatting
  • Double spaced paging
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)
  • 275 words/page
  • Font 12 Arial/Times New Roman

•Unique Samples

We offer essay help by crafting highly customized papers for our customers. Our expert essay writers do not take content from their previous work and always strive to guarantee 100% original texts. Furthermore, they carry out extensive investigations and research on the topic. We never craft two identical papers as all our work is unique.

•All Types of Paper

Our capable essay writers can help you rewrite, update, proofread, and write any academic paper. Whether you need help writing a speech, research paper, thesis paper, personal statement, case study, or term paper, Homework-aider.com essay writing service is ready to help you.

•Strict Deadlines

You can order custom essay writing with the confidence that we will work round the clock to deliver your paper as soon as possible. If you have an urgent order, our custom essay writing company finishes them within a few hours (1 page) to ease your anxiety. Do not be anxious about short deadlines; remember to indicate your deadline when placing your order for a custom essay.

•Free Revisions and Preview

To establish that your online custom essay writer possesses the skill and style you require, ask them to give you a short preview of their work. When the writing expert begins writing your essay, you can use our chat feature to ask for an update or give an opinion on specific text sections.

A Remarkable Student Essay Writing Service

Our essay writing service is designed for students at all academic levels. Whether high school, undergraduate or graduate, or studying for your doctoral qualification or master’s degree, we make it a reality.