Evaluate a company financial position

Assignment Help Accounting Basics
Reference no: EM131819466

Question: Using ratio data to evaluate a company's financial position The comparative financial statements of Perfect Cosmetic Supply for 2016, 2015, and 2014 include the data shown here:

1303_BSP.png

Requirements: 1. Compute these ratios for 2016 and 2015:

a. Acid-test ratio (Round to two decimals.)

b. Accounts receivable turnover (Round to two decimals.)

c. Days' sales in receivables (Round to the nearest whole day.)

2. Considering each ratio individually, which ratios improved from 2015 to 2016 and which ratios deteriorated? Is the trend favorable or unfavorable for the company?

Reference no: EM131819466

Questions Cloud

Calculate the budgeted beginning balance in units : Finished Goods Inventory (August 31) 19,000. Calculate the budgeted beginning balance in units for finished goods inventory on November 1
What would happen to the unemployment rate : Suppose that the labour force decreases by 2,500 people. What would happen to the unemployment rate?
What is the payback period of this? investment : You are considering making a movie. What is the payback period of this? investment?
Appropriate ad-as diagram to support your explanation : Explain carefully the immediate and long term effects of the event towards the economy. Draw by hand the appropriate AD-AS diagram to support your explanation.
Evaluate a company financial position : Using ratio data to evaluate a company's financial position The comparative financial statements of Perfect Cosmetic Supply for 2016, 2015, and 2014.
What legal document conveys title from one person : What legal document conveys title from one person to another?
Explain the impact on at least two other markets : Use the supply and demand diagram to explain the impact on at least two other markets affected by the butter shortage and where the equilibrium outcomes
List the pros and cons of the sarbanes-oxley : List the pros and cons of the Sarbanes-Oxley as they are related to healthcare outcomes.
Compute the break event point for the dinner dance : Compute the break event point for the dinner dance. If the same number attends this year, what price per ticket must be charged in order to break even?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Discuss bond discount amortization

Construct a bond amortization table for this problem to indicate the amount of interest expense and discount amortization

  Department a had 4000 units in work in process that were 75

department a had 4000 units in work in process that were 75 complted as to labor and overhead at the beginning of the

  How many units does samantha need to sell to breakeven

How many units does Samantha need to sell to breakeven? How much revenue does Samantha need to generate to breakeven? How many units does Samantha need to sell to earn an operating profit of $360,000?

  During the year of 20xx a firm plans to produce and sell

during the year of 20xx a firm plans to produce and sell 15000 units at 35 per unit.nbspnbspbudgeted variable costs are

  Construction activities are summarized

PHIL Construction, Inc. had a 3-year project whose contract price was $8,000,000. Construction activities are summarized in the table below.

  Determining the income tax rate

Piper's income before depreciation, before income taxes, and before the cummulative effect of the accounting change (if any), for the year ended december 31, 2011, is $250,000. The income tax rate for 2011, as well as for the years.

  On january 1 2008 jeremiah corporation had 40000 of 12 par

on january 1 2008 jeremiah corporation had 40000 of 12 par value common stock outstanding. on june 1 2008 jeremiah

  Discuss the double-declining balance method had been used

What would have been the difference in reported net income for Year Three if the double-declining balance method had been used along with the half-year

  Ralphs sister amanda is willing to invest 172000 in the

ralph googlio started a new security business in august of 2011. the company has been doing well and ralph is

  Discuss the companys dividend policy

Discuss the company's dividend policy. What is the dollar amount per share the company paid in dividends over the past three years?

  Yellow companys ax division has capacity of 200000 units

yellow companys ax division has capacity of 200000 units. normal selling price is 22.00 per unit. at current operating

  I-time inc produces electronic timepieces the company uses

i-time inc produces electronic timepieces. the company uses mini-lcd dispalys for its products. each time piece uses

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd