User Account

All Pages

Should you invest in abc merchandising company

Assignment Help Accounting Basics
Reference no: EM133155606

Question - Financial Ratio Analysis of ABC Merchandising Company for the year 2020 -

Liquidity

Current Ratio = 4.15

Quick Ratio = 1.07

Working Capital = 403,000

Solvency

Debt Ratio = 16.82%

Debt-to-Equity Ratio = 20.22%

Equity Ratio = 83.18%

Profitability

Gross Margin Ratio = 62.8%

Net Profit Margin Ratio = 10.83%

Return on Capital Employed = 18.64%

Required - With the given data above, answer the following:

1. If you're an investor, should you invest in ABC Merchandising Company? Explain your answer.

2. Should the creditors be confident in supplying ABC Company goods for merchandise and allowing a 90-day term? Explain your answer.

3. The owner is worried that his business is not really that profitable. He is considering ending the business if no one would not invest in his company. What would you advise him based on the analysis report?

Reference no: EM133155606

Questions Cloud

How much will be the future amount : The whole amount together with the interest, was again invested for another 5 years but this time at 12% compounded monthly. How much will be the future amount
Motivator for employees to perform better : To what degree is money a motivator for employees to perform better?
What items are included in the cash asset class : Question - What items are included in the cash asset class? Explain the risks that might be faced by investors in each of these items
Ultimate enterprise architecture success : If someone had to pick one, current or future views, which views do you believe are the most crucial to ultimate enterprise architecture success for any given o
Should you invest in abc merchandising company : Financial Ratio Analysis of ABC Merchandising Company for the year 2020 - Equity Ratio = 83.18%. Should you invest in ABC Merchandising Company
Demonstrate the development and achievement : Q.1 Describe the strategic importance of Human Resource Management (HRM) to organizations and the role that managers/specialist perform in HRM activities.
What are the key activities of an investment fund : Question - What are the key activities of an investment fund? Explain why each key activity is necessary for the investment fund
Discuss the distribution of risk : Question: Discuss the distribution of risk in the following export payment terms: consignment, time draft. 75 words
How does the concept lend itself to sustainable design : If you could be a sustainable restaurant design consultant, what would your dream restaurant concept be to design? Why would you choose this concept?

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is Vulko taxable income

What is Vulko's taxable income for fiscal 2020? Show the journal entries to record Vulko's tax payable and future/deferred taxes for fiscal 2020

  On september 30 of the current year silver fox corporation

on september 30 of the current year silver fox corporation files for bankruptcy. at the time it estimates that the

  What are potential internal controls

What are potential internal controls you can recommend to mitigate some of these risks? What about IT system controls

  Equal employment opportunity laws

Your report should be in the form of a two page memo that discusses the regulations and how they will apply to your hiring process. You may select any Locality or State you wish ensuring compliance with Equal Employment Opportunity laws.

  Calculate the per patient day rates

calculate the per patient day (PPD) rates for all areas highlighted in blue.

  What is Iris gross income from these transactions

Iris also received a separate inheritance from her husband of $70,000 and a gift of $30,000 from her brother. What is Iris gross income from these transactions

  Prepare a flexible budget

K&B is a small management consulting firm. Prepare a flexible budget for K&B. Use billable hours as the measure of output (that is, units produced)

  How to complete a comparative analysis problem

Discuss with your collaborative group how to complete a Comparative Analysis Problem: Amazon.com, Inc. vs. Wal-Mart Stores.

  What other considerations should taihape timbers take

Provide advice to Taihape Timbers as to whether or not they should accept Palmerston Plys' offer to manufacture the 24 mm sheets based purely on your financial

  What is the return on investment for Division A

Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of $30,000, What is the return on investment for Division A

  Make the journal entry or entries that shilling will make

Shilling uses the perpetual inventory system and the gross method. Make the journal entry or entries that Shilling will make on May 1

  Sonnheim manufacturing uses job costing in may material

sonnheim manufacturing uses job costing. in may material requisition were 51000 and raw material purchases were 58900.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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