Match each definition that follows with the term a h it...

Name: match each definition that follows with the term a h it defines a companys ability to make interest payments and repay debt at maturity answer 1 use debt to increase the return on an investm 86626
Uploaded: 2023-09-30T12:59:03-08:00
Duration: 9 min
Channel: Sri K
Description: match each definition that follows with the term a h it defines a companys ability to make interest payments and repay debt at maturity answer 1 use debt to increase the return on an investm 86626

Match each definition that follows with the term (a-h) it defines. a company's ability to make interest payments and repay debt at maturity Answer 1 use debt to increase the return on an investment Answer 2 measures the risk that interest payments will not be made if earnings decrease Answer 3 a percentage analysis of increases and decreases in related items on comparative financial statements Answer 4 the percentage analysis of the relationship of each component in a financial statement to a total within the statement Answer 5 useful for comparing one company to another or to industry averages Answer 6 an analysis of a company's ability to pay its current liabilities Answer 7 focuses on a company's ability to generate net income Answer 8

Transcript

00:01 So, let us find the current ratio.

00:03 So, current ratio is equals to current assets divided by current liabilities.

00:22 So, that would be equal to let us substitute in the values.

00:26 So, current assets is cash plus accounts receivable plus inventory.

00:31 So, and current liabilities is accounts payable.

00:35 So, our current assets is 27 ,129 that we will divide with 8 ,384.

00:45 So, our answer would become 3 .24 and that is our current ratio.

00:52 Now let us talk about quick ratio.

00:54 So, our quick ratio is equals to current assets minus the liabilities or minus sorry minus the inventory divided by the current liabilities.

01:16 So, let us substitute in the values.

01:19 So, we would have 27 ,129 minus the inventory which is 21 ,908 divided by our current liabilities which is 8 ,384.

01:38 So, when we calculate this we get the answer as 0 .62.

01:45 Now let us find the cash ratio.

01:47 So, cash ratio is equals to cash divided by the current liabilities.

02:02 So, cash divided by current liabilities is equals to 1003 divided by 8 ,384 which is equals to 0 .12 that would be our cash ratio.

02:18 Now let us talk about total asset turnover.

02:21 So, total asset turnover would be total asset turnover will be equal to net sales divided by the total assets.

02:37 So, net sales divided by the total assets is equals to 36 ,408 divided by 41 ,209 which is equals to 0 .88.

02:53 Now, we will find the inventory turnover.

02:56 So, inventory turnover will be equal to cost of goods sold divided by the average inventory.

03:18 So, let us now find the answer.

03:20 So, average inventory is equals to beginning inventory plus ending inventory divided by 2.

03:26 So, we would have cost of and the cost of goods sold is equals to 28 ,225 and our average inventory would be 21 ,908 plus 18 ,776 divided by which would be equals to 20 which would be equals to 1 .39 and that would be our inventory turnover.

03:57 Now, let us talk about receivable turnover.

04:00 So, if we talk about receivable turnover...

Question

Please give Ace some feedback