Explore BrainMass

Explore BrainMass

    Circuit City: Evaluate Profitability, Liquidity by viewing financial statements

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    17. A recent annual report issued by Circuit City revealed the attached data.

    The Company's income statement reported total annual revenue of $12.96 billion, and net income for the year of $161 million.

    Instructions:

    a. Evaluate Circuit City's profitability by computing its net income percentage and it return on equity for the year.
    b. Evaluate Circuit City's liquidity by computing its working capital and its current ratio at the beginning of the year and at the end of the year.

    c. Does Circuit City appear to be both profitable and liquid? Explain.

    © BrainMass Inc. brainmass.com March 4, 2021, 6:19 pm ad1c9bdddf
    https://brainmass.com/physics/circuits/circuit-city-evaluate-profitability-liquidity-by-viewing-financial-statements-39914

    Attachments

    Solution Preview

    See the attached file.

    17. A recent annual report issued by Circuit City revealed the following data:

    End of Beginning of the
    Year Year
    Current Assets 2.85 Billion 2.94 Billion
    Current Liabilities 1.29 Billion 1.41 Billion
    Stockholders equity 2.36 billion 2.14 Billion

    The Company's income statement ...

    Solution Summary

    The solution demonstrates the analysis of Circuit City with good explanations.

    $2.49

    ADVERTISEMENT