Purchase Solution

Ratio data to evaluate a company's financial position

Not what you're looking for?

Ask Custom Question

The comparative financial statements of Lakeland Cosmetic Supply for 2012, 2011, and 2010 include the data shown here:

2012 2011 2011
Balance Sheet - partial
Current Assets:
Cash 90,000 70,000 30,000
Short-term investments 145,000 175,000 125,000
Receivables, Net 290,000 260,000 250,000
Inventories 370,000 335,000 325,000
Prepaid expenses 60,000 15,000 50,000

Total Current Assets 955,000 855,000 780,000
Total Current Liabilities 560,000 600,000 690,000

Income statement-Partial

Sales Revenue (all on
Account) 5,860,000 5,140,000 4,200,000

Requirements
1.Compute these ratios for 2012 and 2011:
a.Acid-test ratio
b.Days' sales in receivables
c.Accounts receivable turnover

Purchase this Solution
Solution Summary

Solution helps in ratio data to evaluate a company's financial position

Solution Preview

Using ratio data to evaluate a company's financial position P8-32a
The comparative financial statements of Lakeland Cosmetic Supply for 2012, 2011, and 2010 include the data shown here:

2012 2011 2011
Balance Sheet ...

Purchase this Solution
Free BrainMass Quizzes
SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

View More Free Quizzes
Related BrainMass Solutions

  • Microsoft Corp's financial reports

    What databases and sub-databases did you use to find the answer? Let us evaluate the financial position of Microsoft from various angles.

  • Prime Company's Performance Summary

    Company's Performance Summary I need assistance preparing a performance review I've attached some financial figures and additional company info. Please explain how I would analyze the data for this company.

  • Bedrosian Incorporated Line of Credit

    The company's current income statement and comparative statements of financial position is examined.

  • Analysing the GM motors &subsidiaries by ratios

    Identify the limitations that a banker would have to take into account when evaluating the financial performance of a company. o As an investor, state which financial ratios you would use and how you would use them to evaluate a company.

  • Annual report, evaluate performance with financial ratios

    A safer position should at least be 2: 1 ratio to indicate that current assets are more than enough to pay its current liabilities.

  • Principles of Accounting Financial Statements

    Finally, based on the financial statements and ratio analysis of the company's cash position, liquidity and profitability, the company's financial performance improved. For example, its cash position increased by more than half a billion US dollars.

  • interpret financial statements

    Comparative ratio analysis, ie, comparison of ratios over differnt periods, helps to identify and quantify a company's strengths and weaknesses, evaluate its financial position, and understand the risks that one may be taking.

  • Deep financial statement analysis- Tech Data Corporation

    Further, financial ratios of Tech Data Corporation has been discussed.// Introduction: The financial analysis business implies an analysis of financial statements of a company with a view to making an assessment of the financial performance and position

  • Four different financial statements

    468543 Components of Financial Statements Select a company's financial statements available on the Internet, post the link to the statements, and assume the role of a specific type of reader (investor, potential creditor, management, etc).

View More Related Solutions