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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Using the Balance Sheet of Al Salam Firm for the years of 2017.Required:
Using Common Size Balance Sheet Method, Conduct Solvency Analysis of the Capital Structure Composition of the Liabilities and Equity for the years 2017.
Comment on the Capital Structure for the years 2017.
Comment of the highest and lowest components of the Capital Structure Composition for the year of 2017.
Analyzing the ability to pay liabilities
Big Beautiful Photo Shop has asked you to determine whether the company’s ability to pay current liabilities and total liabilities improved or deteriorated during 2018. To answer this question, you gather the following data:
Compute the following ratios for 2018 and 2017, and evaluate the company’s ability to Pay its current Liabilities and total liabilities:
a. Current ratio
b. Cash ratio
c. Acid-test ratio
d. Debt ratio
e. Debt to equity ratio
Please answer all parts with explanations thx also need times interest earned for 2014- 2018 and ratio of liabilities to stockholders equity for 2014-2018
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Financial Accounting: The Impact on Decision Makers
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- I need assistance on the following regarding the attached balance sheet and income statement: Required: a) Calculate the following financial ratios for 2016 and 2017 13. Debt-to-equity ratio 14. Times-interest-earned ratio 15. Operating-cash-flow-to-capital-expenditures ratioarrow_forward15. Using the information above calculate the net income/ profit, total assets,total debt, total equity,current assets and current liabilities for the year 2016 and choose the correct belowarrow_forwardFind return on assets and return on equity ratios for year 2017, 2018, and 2019.arrow_forward
- Determine the amount of the equity account Cumulative Unrealized Gains or Losses - OCI for year 2018.arrow_forwardF. Based on Baker’s account balances, the amount of Net Income that would be shown on Baker’s Income Statement for December 2017 would be:arrow_forwardIn cell D22, by using cell references, calculate the total long-term assets for year 2014 Use the relevant cells from the given data in the balance sheet. In call D23, by using a cell reference, calculate the total assets for year 2014. Refer to the relevant cell from the given data in the balance sheet. Note: The total assets must equal the total liabilities and owners' equity." in cell D18, by using cell references, calculate the total current assets for year 2014. Use the relevant cells in the balance sheet. In cell D16, by using cell references, calculate the accounts receivable for year 2014. Use the relevant cells in the balance sheet, in cell H14, by using cell references, calculate the accounts payable for year 2014. Use the relevant cells from the given cata in the balance sheet. In cell H22, by using cell references, calculate the total owners' equity for year 2014. Use the relevant cells from the given data in the balance sheet. In cell H18, by using cell references,…arrow_forward
- Analyze the financial statements of the company to you in terms of: 1. Debt Management Ratio * TIE Ratio or Time Interest Earned Ratio 2. Asset Management Ratio *Inventory Turnover Ratio *Fixed Asset Turnover Ratio *Total Asset Turnover Ratio 2020 Analysis BUT also compare with 2018 - 2019. Show solution on computaion.arrow_forwardI need assistance on the following regarding the attached balance sheet and income statement: Required: a) Calculate the following financial ratios for 2016 and 2017 19. Dividend payout ratioarrow_forwardA) Given the balance sheet and income statement, calculate the ratios below. Liquidity 2018 2019 Current ratio _______ _______ Days cash on hand _______ _______ Capital Structure Equity Financing _______ _______ Times Interest Earned _______ _______ Turnover Total Asset _______ _______ Fixed Asset _______ _______ Current Asset _______ _______ Profitability Total Margin _______ _______ Return on Assets _______ _______ Return on Equity _______ _______ B) Comment on the change in return on equity between 2018 and 2019, why did it increase? 2018 2019 2018 2019…arrow_forward
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