Circuit City: Evaluate Profitability, Liquidity by viewing financial statements
Not what you're looking for?
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.
Purchase this Solution
Solution Summary
The solution demonstrates the analysis of Circuit City with good explanations.
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 ...
Purchase this Solution
Free BrainMass Quizzes
Basic Physics
This quiz will test your knowledge about basic Physics.
Classical Mechanics
This quiz is designed to test and improve your knowledge on Classical Mechanics.
Introduction to Nanotechnology/Nanomaterials
This quiz is for any area of science. Test yourself to see what knowledge of nanotechnology you have. This content will also make you familiar with basic concepts of nanotechnology.
The Moon
Test your knowledge of moon phases and movement.
Variables in Science Experiments
How well do you understand variables? Test your knowledge of independent (manipulated), dependent (responding), and controlled variables with this 10 question quiz.