Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN: 9781305654174
Author: Gary A. Porter, Curtis L. Norton
Publisher: Cengage Learning
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Chapter 13, Problem 13.5E
1
To determine
Concept Introduction:
Ratio Analysis:
Ratio analysis is the analysing of company financial health by determining the liquidity, solvency, profitability, efficiency ratios.Such ratios are computed by analysing the company's financial statement such as income statement and Balance sheet.
To Compute:
- Account receivable turnover ratio of Company K and Company G.M
- Day’s sales in receivables of Company K and Company G.M
- Inventory turnover ratio of Company K and Company G.M
- Days’ sales in inventory of Company K and Company G.M
- Cash-to-cash operating cycle of Company K and Company G.M
2
To determine
Concept Introduction:
Ratio analysis is the analysing of company financial health by determining the liquidity, solvency, profitability, efficiency ratios.Such ratios are computed by analysing the company's financial statement such as income statement and Balance sheet.
Comment on the liquidity position of Company K and Company G.M.
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Students have asked these similar questions
The following selected information is presented for Bramble Limited for the year ended February 28, 2021. Bramble uses a periodic
inventory system.
Accounts recelvable
$27,300
Inventory, Mar. 1. 2020
$45,880
Administrative expenses
101.560
Inventory, Feb, 28, 2021
66,640
Common shares
71.400
Purchase discounts
32,760
Deferred revenue
3,780
Purchase returns and allowances
17,480
Dividends declared
35.280
Purchases
229,320
Freight in
7.100
Sales
329.880
Income tax expense
7,820
Selling expenses
7,640
Interest expense
6,560
(a)
Prepare a multiple-step statement
income.
Accounting
Compute for the net sales that would be
reported in LIVA company's Income Statement.
You are to be assigned to prepare the financial
statement of LIVA Company for the year 2021.
The following data were made available for you:
Ending Inventory at Cost - 739, 160
Goods Available for Sale at retail - 3, 930, 000
Sales Discount - 16, 000
Net markdowns - 48, 500
Net markups - 30, 000
Beginning inventory at retail - 1, 450, 000
Purchases at retail - 2, 422, 000
The company adopts the average cost approach
to estimate the value of its inventory and the
cost ratio is computed at 68%.
Accounting records for Dunda’s Corporation yield the following da ta for the year ended June 30, 2012:
Journalize Dunda s’ inventory transactions for the year under the perpetual system.
Report ending inventory, sales, cost of goods sold, and gross profit on the appropriate financial statements.
Chapter 13 Solutions
Financial Accounting: The Impact on Decision Makers
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