Question

AutoSave OFF Aos 50 w Homework #2 - Saved to my Mac Home Share Comments Insert Draw Design Layout References Mailings Review View Arial 10A A Aa A EvEv * BI U vab x, xALA EEEE Ev AaBbCcDdE List Paragraph AaBbCcDdE Normal AaBbCcDdE AaBbCcDc AaBbCcDdEt AaBb(AaBb CcDdEt No Spacing Heading 1 Heading 2 Title Subtitle Paste v Styles Sensitivity Panel Using the information below, calculate the following ratios for both companies for 2019 and compare/contrast EACH ratio. a. DSO b. Quick Ratio c. Times Interest Earned d. Total Liabilities-to-Equity e. Free Operating cash flow to total debt f. Current Ratio g. Total debt to equity h. Accounts receivable turnover Account Gross Sales Returns Cost of Sales SG&A expense Interest expense EBIT Cash Accounts Receivable, Gross Allowance for Bad Debt Inventories Current Liabilities ST Debt LT Debt Total Liabilities Stockholder's Equity Cash Flow from Operations Cash Flow from Investing Cash Flow from Financing Capital Expenditures Capri Yr Ended Yr Ended 12/31/19 12/31/18 231,296 227,136 4,535 4,016 202,978 200,632 15,820 13,430 254 352 7,709 8,706 45,879 54,799 56,740 54,620 1,520 1,920 31,045 31,032 45,478 32,903 354 120 25,490 18,304 71,322 51,327 63,862 91,044 3,590 4,378 1,342 Omega Yr Ended Yr Ended 12/31/19 12/31/18 157,608 160,849 1,869 2,999 143,198 144,197 6,230 7,690 125 98 6,186 5,865 4,389 18,940 2,111 22,851 2,453 2,206 15,762 13,855 8,403 6,504 8,430 14,934 38,851 1,890 10,230 18,633 39,219 2,130 1,253 189 197 30 12 10 18 175 537 38 Page 1 of 1 59 words English (United States) O Focus - - + 130%

Answer 1

Capri Omega Accounts Receivable Turnover Net Credit Sales Average Receivables 231296-4535 (56740-1520+54620-1920)/2 160849-2999 (2111-2453+22851-2206)/2 226761 53960 157850 10151.5 4.20 15.55 Number of days' sales in receivables 365 365 4.20 365 15.55 Accounts Receivable Turnover 87 23 days Acid-test (Quick) Ratio Current Assets - Inventory - Prepaid Expenses Current Liabilities 101,099 45,478 4,047 6,504 2.22 0.62

Times Interest Earned EBIT Interest expense 7709 254 6186 125 30.35 49.49 Times Total Liabilities to Equity Total Liabilities Equity 71322 63862 14934 38851 1.12 0.38 Free Operating Cash Flow to total Debt Operating Cash Flow Total Debt 3590 26098 1890 8555 13.76% 22.09% Current ratio = Current Assets Current Liabilities 132,144 45,478 19,809 6,504 2.91 3.05

Total Debt to Equity Total Debt Equity 26098 63862 8555 38851 40.87% 22.02% 101 102 103 Accounts Receivable Turnover Net Credit Sales Average Receivables 231296-4535 (56740-1520+54620-1920)/2 160849-2999 (2111-2453+22851-2206)/2 104 105 226761 53960 157850 10151.5 106 107 108 4.20 15.55