Business, 17.06.2020 05:57 19King73

You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has asked you to perform a comprehensive analysis of the company’s financial statements, including comparing Lydex’s performance to its major competitors. The company’s financial statements for the last two years are as follows:You decide, finally, to assess the company’s liquidity and asset management. For both this year and last year, compute:a. Working capital. b. The current ratio. (Round your final answers to 2 decimal places.)c. The acid-test ratio. (Round your final answers to 2 decimal places.)d. The average collection period. (The accounts receivable at the beginning of last year totaled $1,750,000.) (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal place.)e. The average sale period. (The inventory at the beginning of last year totaled $2,110,000.) (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal place.)f. The operating cycle. (Round your intermediate calculations and final answer to 2 decimal place.)g. The total asset turnover. (The total assets at the beginning of last year totaled $14,690,000.) (Round your final answers to 2 decimal places.)

Answers: 3

Show answers

Answers

Answer from: am2016832

a. Working capital.

current assets - current liabilities

current year = 7,800,000 - 3,900,000 = $3,900,000 last year = 5,940,000 - 2,760,000 = $3,180,000

b. The current ratio. (Round your final answers to 2 decimal places.)

current year = 7,800,000 / 3,900,000 = 2 last year = 5,940,000 / 2,760,000 = 2.15

c. The acid-test ratio. (Round your final answers to 2 decimal places.)

current year = (7,800,000 - 3,900,000) / 3,900,000 = 1 last year = (5,940,000 - 2,400,000) / 2,760,000 = 1.28

d. The average collection period. (The accounts receivable at the beginning of last year totaled $1,750,000.) (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal place.)

turnover ratio = net sales / average accounts receivable

7.03

current year = 365 / 7 = 52.14 days last year = 365 / 7.03 = 51.92 days

e. The average sale period. (The inventory at the beginning of last year totaled $2,110,000.) (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal place.)

current year = {[(3,900,000 + 2,400,000) / 2] / $12,600,000} x 365 = 91.25 dayslast year = {[(2,400,000 + $2,110,000) / 2] / $9,900,000} x 365 = 83.14 days

f. The operating cycle. (Round your intermediate calculations and final answer to 2 decimal place.)

current year = 52.14 + 91.25 = 143.39 days last year = 51.92 + 83.14 = 135.06 days

g. The total asset turnover. (The total assets at the beginning of last year totaled $14,690,000.) (Round your final answers to 2 decimal places.)

current year = 15,750,000 / [(17,100,000 + 14,880,000)/2] = 0.98 last year = 12,480,000 / [(14,880,000 + 14,690,000)/2] = 0.84

Answer from: Quest

first one

explanation:

Answer from: Quest

Iwould want a good job, home, and city/state. the reason being is i want to have a nice life and stay healthy. i want to get a good salary!

Another question on Business

Business, 22.06.2019 06:40

After the 2008 recession, the amount of reserves in the us banking system increased. because of federal reserve actions, required reserves increased from $44 billion to $60 billion. however, banks started holding more reserves than required. by january 2009, banks were holding $900 billion in excess reserves. the federal reserve started paying interest on the excess reserves that the banks held. what possible impact will these unused reserves have on the economy?

Answers: 1

Answer

Business, 22.06.2019 11:50

After graduation, you plan to work for dynamo corporation for 12 years and then start your own business. you expect to save and deposit $7,500 a year for the first 6 years (t = 1 through t = 6) and $15,000 annually for the following 6 years (t = 7 through t = 12). the first deposit will be made a year from today. in addition, your grandfather just gave you a $32,500 graduation gift which you will deposit immediately (t = 0). if the account earns 9% compounded annually, how much will you have when you start your business 12 years from now?

Answers: 1

Answer

Business, 22.06.2019 17:30

Kevin and jenny, who are both working full-time, have three children all under the age of ten. the two youngest children, who are three and five years old, attended eastside pre-school for a total cost of $3,000. ervin, who is nine, attended big kid daycare after school at a cost of $2,000. jenny has earned income of $15,000 and kevin earns $14,000. what amount of childcare expenses should be used to determine the child and dependent care credit?

Answers: 3

Answer

Business, 22.06.2019 17:40

Slimwood corporation made sales of $ 725 million during 2018. of this amount, slimwood collected cash for $ 670 million. the company's cost of goods sold was $ 300 million, and all other expenses for the year totaled $ 400 million. also during 2018, slimwood paid $ 420 million for its inventory and $ 285 million for everything else. beginning cash was $ 110 million. carter's top management is interviewing you for a job and they ask two questions: (a) how much was carter's net income for 2018? (b) how much was carter's cash balance at the end of 2016? you will get the job only if you answer both questions correctly.

Answers: 1

Answer

You know the right answer?

You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets....

Questions