17. Selfridges, an upscale London retailer, has a current ratio of 2.2. Which of the following transactions will cause the ratio to increase? a. When Selfridges declares a 20% dividend on its stock b. When it purchases merchandise c. When it pays off a creditor d. When it receives cash from sale of fixed assets e. None of the above.
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- Please Help! I am struggling so much with this chapter. Instructions: Determine the following measures for 20Y2, rounding to one decimal place including percentages, except for per-share amounts. May I have help with the sub-parts below please (4-18)? 4. Accounts Receivable Turnover 5. Number of days' sales in receivables 6. Inventory Turnover 7. Number of days' sales in inventory 8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholder's equity 10. Times interest earned 11. Asset Turnover 12. Return on Total Assets 13. Return on Stockholder's Equity 14. Return on Common Stock 15. Earnings per share on Common Stock 16. Price-earnings ratio 17. Dividends per share of Common Stock 18. Dividend YieldAssume that the company has a current ratio of 1.2. Now which of the above actions would improve this ratio. Which of the following actions would improve (i.e., increase) this ratio?• Use cash to pay off current liabilities.• Collect some of the current accounts receivable.• Use cash to pay off some long-term debt.• Purchase additional inventory on credit (i.e., accounts payable).• Sell some of the existing inventory at cost.Which of the following events will cause a company’s current ratio to decrease? a. The sale of inventory for credit (accounts receivable) b. Issuing stock for cash c. The sale of inventory for cash d. Paying off long-term debt with cash
- Please Help! I am struggling so much with this chapter. Instructions: Determine the following measures for 20Y2, rounding to one decimal place including percentages, except for per-share amounts. 1. Working Capital 2. Current Ratio 3. Quick Ratio 4. Accounts Receivable Turnover 5. Number of days' sales in receivables 6. Inventory Turnover 7. Number of days' sales in inventory 8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholder's equity 10. Times interest earned 11. Asset Turnover 12. Return on Total Assets 13. Return on Stockholder's Equity 14. Return on Common Stock 15. Earnings per share on Common Stock 16. Price-earnings ratio 17. Dividends per share of Common Stock 18. Dividend YieldV. Direction: Solve the following problems using financial ratios. Write the answer on the blank. 1. Current assets is P20,000, current liabilities is P30,000. What is the current ratio? 2. Inventory is P15,000; Accounts Payable is P45,000. Cash and accounts receivable total P8,000. What is the current ratio? What is the quick ratio? 3. If current ratio is 1.5, what is the total accounts receivable if cash is P220,000, inventory is P75,000, and accounts payable is P330,000? 4. Cash is 30% of total current assets. If current ratio is 2.5, what is the new current ratio if total non- cash current assets grow by 50%? 5. The total asset is P1,500,000. Sales is P4,500,000. What is the asset turnover? 6. Accounts receivable turnover is 8. What is the average collection period assuming annual data What is the average collection period if quarterly data are used? are used? 7. Sales for the year amount to P3,000,000, Accounts receivable is P360,000. What is the average collection period assuming…1. If the accounts receivable turnover is 42 days, what is the account receivable turnover ratio? 2. ABC Company has a quick ratio of 2.5 to 1. It has current liabilities of P40,000 and noncurrent assets of P70,000. If Brilliant’s current ratio is 3.1 to 1, its inventory and prepaid expenses must be? 3. Ontario Company has P9,000 in cash, P11,000 in marketable securities, P26,000 in current receivables, P34,000 in inventories, and P40,000 in current liabilities. The Rhea's quick ratio is closest to?
- 2. Using the following select financial statement information from Black Water Industries, compute the accounts receivable turnover ratios for 2018 and 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Black Water Industries? Year 2017 2018 2019 BLACK WATER INDUSTRIES Net Credit Sales $685,430 700,290 768,500 Ending Accounts Receivable $330,250 360,450 401,65010. Review the select information for Bean Superstore and Legumes Plus (industry competitors), and then complete the following. A. Compute the accounts receivable turnover ratios for each company for 2018 and 2019. B. Compute the number of days' sales in receivables ratios for each company for 2018 and 2019. C. Determine which company is the better investment and why. Round answers to two decimal places. BEAN SUPERSTORE LEGUMES PLUS Comparative Balance Sheet December 31, 2017, 2018, and 2019 Comparative Balance Sheet December 31, 2017, 2018, and 2019 2019 2018 2017 2019 2018 2017 Assets Cash $345,600 67,000 145,830 100,465 $330,460 62,000 178,011 101,202 $300,000 59,000 155,205 103,085 $407,000 85,430 128,080 182,006 $386,450 82,670 40,036 23,400 $356,367 79,230 52,142 111,701 Accounts Receivable Inventory Equipment Total Assets $658,895 $671,673 $617,290 $802,516 $532,556 $599,440 Liabilities Salaries Payable Accounts Payable Notes Payable $ 91,455 $ 90,200 70,000 41,000 $ 88,563…H3. A company has net income of $213,700, a profit margin of 7.1 percent, and an accounts receivable balance of $126,385. Assuming 65 percent of sales are on credit, what is the company’s days’ sales in receivables? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Show proper step by step calculation
- Nathalie Inc. could improve its current ratio of 2 by: A. Writing off an uncollectible receivable.B. Selling merchandise on credit at a profit.C. Purchasing inventory on credit.D. Paying a previously declared stock dividend.Please Help! I am struggling so much with this chapter. Instructions: Determine the following measures for 20Y2, rounding to one decimal place including percentages, except for per-share amounts. May I have help with the sub-parts below please and it is only calculating for the 20Y2? 5. Number of days' sales in receivables 10. Times interest earned 11. Asset TurnoverA company’s current ratio is 2.0. Suppose the company uses cash to retire notes payable due within one year. What would be the effect on the current ratio and asset turnover ratio?