You are the financial director of Farm Poultry Enterprises. The following information is prepared by your...
You are the financial director of Farm Poultry Enterprises. The following information is prepared by your head accountant and presented to you for the current year (2018) and the comparative year (2017):
|
|
2018 |
2017 |
|
|
Return on Shareholder‘s Equity (ROE) |
11% |
15% |
|
|
Net Profit before tax (Rm) |
R2.25 |
R3 |
|
|
Current ratio |
1.4:1 |
1.6:1 |
|
|
Acid-test ratio |
0.4:1 |
0.9:1 |
|
|
Debtor‘s collection period |
58 days |
67 days |
|
|
Creditor‘s payment period |
30 days |
30 days |
|
|
Inventory turnover rate |
6 times |
4 times |
Required:
After an analysis and interpretation of the above information prepare a detailed report that you would present to your Board of Directors.
Homework Answers
ROE has decreased by 4%. This indicates that profit has declined and management is not making wise decisions with reinvesting the capital.
Net profit before tax has also declined by 0.75, which shows a poor performance, when compared to year 2017.
Current ratio of 2018 has also decreased from 2017, which may be either due to increase in Curr. Liabi. or decrease in curr. assets; but still it is more than 1 which shows a good liquidity.
Debtor‘s collection period is decreased by 9 days from 2017 to 2018, which is favorable. as now it is converting credit sales into cash faster than before.
No changes are there in 2018 in creditor's payment period from year 2017.
Inventory turnover has increased by 2 times. It may be either sales have increased or due to less stock of goods.
Add Answer to:
You are the financial director of Farm Poultry Enterprises. The
following information is prepared by your...
Exercise 14-5 Selected comparative financial statement data for Handley Inc. are shown below. 2016 $ HANDLEY...
Exercise 14-5 Selected comparative financial statement data for Handley Inc. are shown below. 2016 $ HANDLEY INC. Statement of Financial Position (partial) December 31 (in thousands) 2018 2017 Current assets Cash $ 30 $ 92 Held for trading investments 55 Accounts receivable, net 681 590 Inventory 634 530 Prepaid expenses 52 Total current assets $1,441 $1,324 Total current liabilities $ 885 $ 826 60 40 60 494 577 41 29 $1,200 $ 756 Additional information: (in thousands) Allowance for doubtful...
Problem for Chapter 13 Analyzing Financial Statements Information below comes from the financial statements of Rosson...
Problem for Chapter 13 Analyzing Financial Statements Information below comes from the financial statements of Rosson Company. 2018 2017 Revenues: Net Sales Other Revenues.. Total Revenues $299,000 8,000 307,000 $246,000 9,000 255,000 Expenses: Cost of Goods Sold S,G&A Expenses Interest Expense.. Income Tax Expense Total Expenses. Income Before Discontinued Operations Discontinued Operations Gain (net of tax) Net Income.. 172,000 44,000 4,000 31,000 251.000 56,000 138,000 40,000 4,500 25,400 207,900 47,100 9,000 $ 65,000 $ 47,100 Assets Current Assets: $ 7,500...
Question 1 You are given the following information: Bahulu Hangit Berhad selected financial data... 31st December...
Question 1 You are given the following information: Bahulu Hangit Berhad selected financial data... 31st December 2017 (in RM'000) 7,157 3,248 723 Tota! assets Total equities Operating income Interest expenses 502 From the above information you are required to: compute: i. Total Debt Ratio i. Times Interest Earned Ratio а. (4 Marks) based on your calculation in part (a), analyse Bahulu Hangit Berhad performance to the following industry average ratios: b. 30% Total Debt Ratio Times Interest Earned Ratio 5x...
Microsoft Corporation reported the following information in its financial statements for three successive quarters ($ i...
Microsoft Corporation reported the following information in its financial statements for three successive quarters ($ in millions): Three Months Ended 9/30/2017 6/30/2017 3/31/2017 (21) (24) (23) $14,561 $19,792 $12,882 Balance sheets: Accounts receivable, net Income statements: Sales revenue $24,538 $23,317 $22,090 Required: Compute the receivables turnover ratio and the average collection period for Q1 and Q4. Assume that each quarter consists of 91 days. (Enter your answers in millions. Round average accounts receivable answers to nearest whole dollar and "Turnover...
The following financial data relate to Big Bang Pty Ltd for the years ended 30 June...
The following financial data relate to Big Bang Pty Ltd for the years ended 30 June Year 2019 and 30 June Year 2018. Financial item 30 June Year 2019 Year 2018 $630 000 $490 000 Net credit sales Cost of goods sold Cash 290 000 250 000 12 000 18 000 Accounts receivable 70 000 60 000 130 000 Inventory 150 000 Current liabilities 105 000 81 000 Additional information: The amount of Accounts receivables at 30 June Year 2017...
Assume it is early 2020 and you are a loan officer at ABC commercial bank. Martin Manufacturing h...
Assume it is early 2020 and you are a loan officer at ABC
commercial bank. Martin Manufacturing has been a customer of XYZ
Bank, your local bank rival. You want to increase your loan
portfolio with new customers, but you only want to lend to
customers that are likely to repay the bank in full and on-time.
Senior officers from Martin Manufacturing have approached you and
indicated that they are considering moving their banking
relationship away from XYZ Bank. They...
Birtle Corporation reports the following statement of financial position information for 2017 and 2018. Assets 2017...
Birtle Corporation reports the following statement of financial position information for 2017 and 2018. Assets 2017 2017 2018 S Current assets Cash Accounts receivable Inventory Total $ 43, 805 16, 843 9, 279 23, 683 42.636 $ 75,598 BIRTLE CORPORATION 2017 and 2018 Statement of Financial Position Liabilities and Owners' Equity 2018 Current liabilities $ 11, 173 Accounts payable $ 41,060 25, 760 Notes payable 16, 157 46, 915 $ 83, 848 Total $ 57, 217 Long-term debt $ 40,000...
Use the following financial statements for Lake of Egypt Marina, Inc. 2018 2017 $ 48 $...
Use the following financial statements for Lake of Egypt Marina, Inc. 2018 2017 $ 48 $ 50 55 44 Assets Current assets: Cash and marketable securities Accounts receivable Inventory Total Fixed assets: Gross plant and equipment Less: Depreciation 40 LAKE OF EGYPT MARINA, INC. Balance Sheet as of December 31, 2018 and 2017 (in millions of dollars) 2018 2017 Liabilities and Equity Current liabilities: $ 50 $ 56 Accrued wages and taxes 60 52 Accounts payable 205 Notes payable $315...
Use the following financial statements for Lake of Egypt Marina, Inc. 2018 2017 $ 40 $...
Use the following financial statements for Lake of Egypt Marina, Inc. 2018 2017 $ 40 $ 36 45 52 LAKE OF EGYPT MARINA, INC. Balance sheet as of December 31, 2018 and 2017 (in millions of dollars) 2018 2017 Assets Liabilities and Equity Current assets: Current liabilities: Cash and marketable securities $ 55 S 48 Accrued wages and taxes Accounts receivable Accounts payable Inventory 180 Notes payable Total Total Fixed assets: Long-term debt: Gross plant and equipment $265 $ 224...
Use the following financial statements for Lake of Egypt Marina, Inc. 2018 2017 $ 40 $...
Use the following financial statements for Lake of Egypt Marina, Inc. 2018 2017 $ 40 $ 36 45 52 LAKE OF EGYPT MARINA, INC. Balance sheet as of December 31, 2018 and 2017 (in millions of dollars) 2018 2017 Assets Liabilities and Equity Current assets: Current liabilities: Cash and marketable securities $ 55 S 48 Accrued wages and taxes Accounts receivable Accounts payable Inventory 180 Notes payable Total Total Fixed assets: Long-term debt: Gross plant and equipment $265 $ 224...
Exercise 14-5 Selected comparative financial statement data for Handley Inc. are shown below. 2016 $ HANDLEY INC. Statement of Financial Position (partial) December 31 (in thousands) 2018 2017 Current assets Cash $ 30 $ 92 Held for trading investments 55 Accounts receivable, net 681 590 Inventory 634 530 Prepaid expenses 52 Total current assets $1,441 $1,324 Total current liabilities $ 885 $ 826 60 40 60 494 577 41 29 $1,200 $ 756 Additional information: (in thousands) Allowance for doubtful...
Problem for Chapter 13 Analyzing Financial Statements Information below comes from the financial statements of Rosson Company. 2018 2017 Revenues: Net Sales Other Revenues.. Total Revenues $299,000 8,000 307,000 $246,000 9,000 255,000 Expenses: Cost of Goods Sold S,G&A Expenses Interest Expense.. Income Tax Expense Total Expenses. Income Before Discontinued Operations Discontinued Operations Gain (net of tax) Net Income.. 172,000 44,000 4,000 31,000 251.000 56,000 138,000 40,000 4,500 25,400 207,900 47,100 9,000 $ 65,000 $ 47,100 Assets Current Assets: $ 7,500...
Question 1 You are given the following information: Bahulu Hangit Berhad selected financial data... 31st December 2017 (in RM'000) 7,157 3,248 723 Tota! assets Total equities Operating income Interest expenses 502 From the above information you are required to: compute: i. Total Debt Ratio i. Times Interest Earned Ratio а. (4 Marks) based on your calculation in part (a), analyse Bahulu Hangit Berhad performance to the following industry average ratios: b. 30% Total Debt Ratio Times Interest Earned Ratio 5x...
Microsoft Corporation reported the following information in its financial statements for three successive quarters ($ in millions): Three Months Ended 9/30/2017 6/30/2017 3/31/2017 (21) (24) (23) $14,561 $19,792 $12,882 Balance sheets: Accounts receivable, net Income statements: Sales revenue $24,538 $23,317 $22,090 Required: Compute the receivables turnover ratio and the average collection period for Q1 and Q4. Assume that each quarter consists of 91 days. (Enter your answers in millions. Round average accounts receivable answers to nearest whole dollar and "Turnover...
The following financial data relate to Big Bang Pty Ltd for the years ended 30 June Year 2019 and 30 June Year 2018. Financial item 30 June Year 2019 Year 2018 $630 000 $490 000 Net credit sales Cost of goods sold Cash 290 000 250 000 12 000 18 000 Accounts receivable 70 000 60 000 130 000 Inventory 150 000 Current liabilities 105 000 81 000 Additional information: The amount of Accounts receivables at 30 June Year 2017...
Assume it is early 2020 and you are a loan officer at ABC
commercial bank. Martin Manufacturing has been a customer of XYZ
Bank, your local bank rival. You want to increase your loan
portfolio with new customers, but you only want to lend to
customers that are likely to repay the bank in full and on-time.
Senior officers from Martin Manufacturing have approached you and
indicated that they are considering moving their banking
relationship away from XYZ Bank. They...
Birtle Corporation reports the following statement of financial position information for 2017 and 2018. Assets 2017 2017 2018 S Current assets Cash Accounts receivable Inventory Total $ 43, 805 16, 843 9, 279 23, 683 42.636 $ 75,598 BIRTLE CORPORATION 2017 and 2018 Statement of Financial Position Liabilities and Owners' Equity 2018 Current liabilities $ 11, 173 Accounts payable $ 41,060 25, 760 Notes payable 16, 157 46, 915 $ 83, 848 Total $ 57, 217 Long-term debt $ 40,000...
Use the following financial statements for Lake of Egypt Marina, Inc. 2018 2017 $ 48 $ 50 55 44 Assets Current assets: Cash and marketable securities Accounts receivable Inventory Total Fixed assets: Gross plant and equipment Less: Depreciation 40 LAKE OF EGYPT MARINA, INC. Balance Sheet as of December 31, 2018 and 2017 (in millions of dollars) 2018 2017 Liabilities and Equity Current liabilities: $ 50 $ 56 Accrued wages and taxes 60 52 Accounts payable 205 Notes payable $315...
Use the following financial statements for Lake of Egypt Marina, Inc. 2018 2017 $ 40 $ 36 45 52 LAKE OF EGYPT MARINA, INC. Balance sheet as of December 31, 2018 and 2017 (in millions of dollars) 2018 2017 Assets Liabilities and Equity Current assets: Current liabilities: Cash and marketable securities $ 55 S 48 Accrued wages and taxes Accounts receivable Accounts payable Inventory 180 Notes payable Total Total Fixed assets: Long-term debt: Gross plant and equipment $265 $ 224...
Use the following financial statements for Lake of Egypt Marina, Inc. 2018 2017 $ 40 $ 36 45 52 LAKE OF EGYPT MARINA, INC. Balance sheet as of December 31, 2018 and 2017 (in millions of dollars) 2018 2017 Assets Liabilities and Equity Current assets: Current liabilities: Cash and marketable securities $ 55 S 48 Accrued wages and taxes Accounts receivable Accounts payable Inventory 180 Notes payable Total Total Fixed assets: Long-term debt: Gross plant and equipment $265 $ 224...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago