Seminole Corporation reported the following items at December 31, 2021, and 2020:(Click the icon to view the comparative financial information.)Read the requirements.Requirement 1. Compute the company's (a) quick (acid-test) ratio and (b) days' sales outstanding for 2021. Evaluate each ratiovalue as strong or weak. All sales are on account with terms of net 30 days.(a) Enter the formula and calculate the quick (acid-test) ratio for 2021. (Abbreviation used: Cash* = Cash and cash equivalents.Round your final answer to two decimal places.)Cash* + Short-term investments + Net current receivables + Total current liabilities = Quick (acid-test) ratio$Seminole's quick (acid-test) ratio is considered fairly weak.(b) Select the formula and calculate Seminole's days' sales outstanding for 2021. (Round interim calculations to two decimalplaces, XX.XX. Round the days' sales outstanding up to the next whole day.)Accounts receivable turnover =+Days' sales outstandingSeminole's days' sales outstanding is within acceptable range relative to credit terms of net 30 days.Requirement 2. Recommend two ways for Seminole to speed up its cash flow from receivables.Seminole could speed up cash flows from receivables by offering discounts for early paymentsor increasing penalties for late payments Data tableCurrent assets:CashMarketable securitiesAccounts receivable, netInventoryOther current assetsLong-term assetsTotal assetsIncome Statement(partial):Sales revenueBalance Sheets (Summarized)Year End2021$ 15,000 $23,00060,000196,0005,00020202021$938.000Current liabilities:11,00012,00074,000 Long-term liabilities192,0005,00010,000$299,000 $ 304,000Accounts payableOther current liabilitiesStockholders' equityYear End2021$ 18,000 $108,00020,000202019,500110,00021,000153,000 153,500Total liabilities and equity $299,000 $ 304,000X

Introduction:- Ratio analysis used identify the business performance of the company. It is used to…

Requirement 1. Compute the company's (a) quick (acid-test) ratio and (b) days' sales outstanding for 2021. Evaluate value as strong or weak. All sales are on account with terms of net 30 days. (a) Enter the formula and calculate the quick (acid-test) ratio for 2021. (Abbreviation used: Cash* = Cash and cash eq Round your final answer to two decimal places.) Cash*+Short-term investments + Net current receivables $ + Total current liabilities = + $ = Quick (acid-te

Requirement 1. Compute the company's (a) quick (acid-test) ratio and (b) days' sales outstanding for 2021. Evaluate value as strong or weak. All sales are on account with terms of net 30 days. (a) Enter the formula and calculate the quick (acid-test) ratio for 2021. (Abbreviation used: Cash* = Cash and cash eq Round your final answer to two decimal places.) Cash*+Short-term investments + Net current receivables $ + Total current liabilities = + $ = Quick (acid-te

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 9EA: Using the following select financial statement information from Black Water Industries, compute the...

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After analyzing the transactions, prepare a vertical analysis schedule for the company for 2021 and 2020 using service revenue as the base amount. Round percentages to two decimal places. Here is the operating data for Yalis Cleaning, Inc.: 2021 2020Service revenue $523,000 $476,000Operating expenses 385,500 319,800Income tax expense 34,375 39,050Net income $103,125 $117,150
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1. Compute the following ratios for the comparative periods (2018 and 2019). The company used 365 days in its computation for some of the ratios. Show your solution. d. Accounts Receivable Turnover Ratio e. Average Collection Period f. Inventory Turnover Ratio g. Average Days in Inventory h. Number of days in Operating Cycle i. Debt to Total Assets Ratio j. Debt to Equity Ratio k. Times Interest Earned Ratio l. Gross Profit Ratio m. Profit Margin Ratio n. Return on Assets o. Return on Equity p. Assets Turnover Ratio
You are given the financial statements of Bersatu Berhad for the 2021 and 2020. a. Use the above financial statements, determine the company’s return on equity (ROE). Is there is any significant different between the ROEs of the company for the two years? Provide the formula and show your calculation.b. Based on DuPont framework, return on equity is broken into three important components. What are the three components? Provide the formula for each component. What does each component attempts to measure?
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River Valley Production Inc. seeks to increase its market share and improve its results. The company takes as a starting point the current scenario and the results obtained in 2018 and 2019. Like other companies, River Valley uses financial ratios (ratios) as tools for analyzing the results obtained at the end of the period. Consider the data presented in the financial statements below and analyze the company's results based on the financial ratios.1. Use the financial statements to calculate the following financial ratios for the years 2018 and 2019:1.8 Return on Investment (ROI)1.9 Profit Margin1.10 Debt to Equity Ratio1.11 Price/Earning Ratio Balance Sheet 2018 2019 Cash $63,000 $201,000 Accounts Receivable 199,000 305,000 Marketable Securities 81,000 42,000 Inventories 441,000 455,000 Prepaids 5,000 9,000 Total Current Assets 789,000 1,012,000 Property, Plant, and Equipment, net 858,000 858,000…