Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Below are current year financial statements for two companies in the same industries and direct competitors. Both companies have been in operation approximately the same length of time.
Company A
Company B
Balance Sheet
Cash
31,000
16,000
Accounts receivable (net)
29,000
24,000
Inventory
87,000
Property and equipment, net
125,000
394,000
Other assets
79,000
298,000
Total assets
351,000
761,000
Current liabilities
91,000
47,000
Long-term debt (5% interest)
62,000
58,000
Capital stock ($5 par)
145,000
505,000
Contributed capital in excess of par
18,000
103,000
Retained earnings
35,000
48,000
Total liabilities and stockholders' equity
Income Statement
Sales revenue (1/3 of sales on credit)
452,000
799,000
Cost of goods sold
(250,000)
(396,000)
Expenses (including interest and taxes)
(161,000)
(308,000)
Net income
41,000
95,000
Selected data from prior year
33,000
81,000
42,000
110,000
375,000
Long-term debt
65,000
70,000
Other data
Market price per share at end of current year
$16
$13
Average income tax rate
25%
Dividends declared and paid in current year
22,000
88,000
Required:
1) Prepare a schedule reflecting a ratio analysis of each company. Compute all ratios from the module for which you have enough data.
2) If an investor were considering an investment in one of these companies, which would you recommend based on this data? Explain your response.
Financial Statement Analysis and Preparation
Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?
An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.
Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.
This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited
Prepare general journal entries for Goela Ltd
Prepare the journal entry to record the acquisition of the assets.
Prepare general journal entries to record the transactions, assuming use of the periodic inventory system
Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.
Explain the IASB Conceptual Framework's perspective of users and their decisions.
T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .
Computation of Free Cash Flow
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd