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Sever21 [200]
3 years ago
8

Following are financial data from year-end financial statements of Portland Company for 2017, 2016 and 2015.

Business
1 answer:
denpristay [2]3 years ago
7 0

Answer:

Answers are calculated below

Explanation:

Financial ratios can be calculated according to their formulas. Both formulas and calculation are as follows

CURRENT RATIO

Current ratio = Current assets/current liabilities

Current ratio (2016) = $360,000/$250,000

Current ratio (2016) = 1.44

Current ratio (2017) = $450,000 / $300,000

Current ratio (2017) = 1.50

ACID RATIO

Acid ratio = (Current asset - inventory)/current liabilities

Acid ratio (2016) = (360,000 - 165,000)/250,000

Acid ratio (2016) = 0.78

Acid ratio (2017) = (450,000-225,000)/300,000

Acid ratio (2017) = 225,000/300,000

Acid ratio (2017) = 0.75

INVENTORY TURNOVER RATIO

Inventory turnover ratio = cost of good Sold / Average inventory

Inventory turnover ratio (2016) =  864,000/(360,000 ÷2)

Inventory turnover ratio (2016) = 864,000/180,000

Inventory turnover ratio (2016) = 4.80

Inventory turnover ratio (2017) = 1,023,750 / ( 390,000 ÷ 2)

Inventory turnover ratio (2017) = 1,023,750 / 195,000

Inventory turnover ratio (2017) = 5.25

DAYS SALE IN RECEIVABLE

Days sale in receivable = 365/Average receivable turnover ratio

Days sale in receivable (2016) = 365/ 12.67(w1)

Days sale in receivable (2016) = 28.81 days

Days sale in receivable (2017) =365/11.7(w1)

Days sale in receivable (2017) = 31.20 days

Working 1

Account receivable turnover ratio = Sales/ Average receivable

Account receivable turnover ratio (2016) = 1,752,000/138,288(w2)

Account receivable turnover ratio = 12.67 times

Account receivable turnover ratio (2017) = 1,642,500/140,351(w2)

Account receivable turnover ratio (2017) = 11.7 times

Working 2

Average receivable = (Opening + Closing) /2

Average receivable (2016) = (132,000 + 144,576) /2

Average receivable (2016) = 138,288

Average receivable (2017) = (144,576 +136,125 ) /2

Average receivable (2017) = 140,351

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morpeh [17]

A bag of chips will cost $1.25. The price is calculated by making linear equations in two variables and solving them by substitution method.

<h3>What is a linear equation in two variables?</h3>

Linear equation in two variables can be defined as an equation in the form:

\rm ax + by = c , where x and y are variables and a and b are not equal to 0.

For the given problem, let "s" be the cost of a sandwich and "c" be the cost of a chips bag.

Given:

The cost of three sandwiches and two chips bags is $22.00.

Therefore, the 1st equation will be:

\rm 3s +2c = 22                              

The cost of two sandwiches and one chips bag is $14.25.

Therefore, the 2nd equation will be:

\rm 2s + c = 14.25

To calculate the cost of a chips bag, we need to solve equation 1 and equation 2 by the substitution method.

From equation 2, the value of c will be:

\begin{aligned}\rm 2s + c &= 14.25\\\\c &= 14.25 - 2s\end                                   ... (3)

Now we will put  \rm c = 14.25 - 2s  in equation 1:

\begin{aligned} \rm 3s + 2c &= 22\\\\3s + 2(14.25 - 2s) &= 22\\\\3s + 28.50 - 4s &= 22\\\\-s + 28.50 &= 22\\\\s &= 28.50 - 22\\\\s &= \$6.50\end

On substituting the value of s in equation 3:

\rm  c = 14.25 - 2s \\\\c = 14.25 - 2(6.50)\\\\c = 14.25 - 13\\\\c = \$1.25

Therefore the cost of a bag of chips is $1.25.

Learn more about linear equations in two variables here:

brainly.com/question/84787

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Should companies be allowed to force stores to obey minimum prices? Yes or no? Explain the reason why you chose yes or no?
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Yes, stores should be forced to obey minimum prices for a good or a company that is selling a service should as well. They should have to obey by this so that price competition isn't ongoing in the market. Larger producers can often charge a smaller amount for a product because they are producing them in high qualities. By charging less it gives them a competitive advantage over their competition in means of price. Unless the item is on clearance because a company is discontinuing stock of that item, they should have a set minimum as they do a set maximum they are allowed to charge for that item. 
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3 years ago
Which crop saved jamestown by making money for the settlement’s investors?
Rasek [7]

Answer:

Tobacco

Explanation:

No explanation needed.

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MC Qu. 90 A company is planning to purchase... A company is planning to purchase a machine that will cost $30,600 with a six-yea
faltersainse [42]

Answer:

Accounting rate of return = 20.53%

Explanation:

<em>The accounting rate of return is the average annual income expressed as a percentage of the average investment.</em>

The simple rate of return can be calculated using the two formula below:

Accounting rate of return

= Annual operating income/Average investment × 100

Average investment = (Initial cost + scrap value)/2

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Accounting rate of return = ( 3080/15,000) × 100 = 20.53%

Accounting rate of return = 20.53%

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