Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

problem 1) Part A

Julius Caesar, Inc. needs to analyze results of his trading for the year ended 31 December 2006 and has prepared his Income Statement and Balance Sheet. He compares these with finals accounts for the previous year. Comparative financial-statement data of Julius Caesar, Inc. follow.

1856_Income statement.jpg

2154_Balance sheet.jpg

Other Information:

1. Market price of Caesar’s common stock: Rs 42.50 at December 31, 2006, and Rs 53 at December 31, 2005.

2. Common shares outstanding: 20,000 during 2006 and 18,000 during 2005.

3. All sales on credit.

Required:

(a) Compute the following ratios to two decimal places for each of the years ended 31 December 2006 and 2005.

a. Gross profit margin

b. Net profit margin

c. Earnings per share of common stock

d. Price/earnings ratio

e. Return on total assets

f. Current ratio

g. Acid test ratio

h. Times-interest-earned ratio

i. Inventory turnover

j. Debtors Period

(b) Decide:

(i) whether Caesar’s ability to pay debts and to sell inventory improved or deteriorated during 2006 and

(ii) whether investment attractiveness of its common stock appears to have increased or decreased.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M96379

Have any Question? 


Related Questions in Accounting Basics

Term paperfirmsteamsanadarko petroleumadams michaelaellis

Term Paper Firms Teams Anadarko Petroleum Adams, Michaela Ellis, Tatiana Jenkins, Jordan Samuel, Brittany Cheniere Energy Amaefule, Frankie Fields, Brittanie Johnson, Brandon Small, Devin Chevron Corporation Brown, Tori ...

1 the manufacture of herbal health tonic is a competitive

1. The manufacture of herbal health tonic is a competitive industry. The manufacturing facilities have an annual output of 100,000 gallons. Operating costs are $2 per gallon. A 100,000 gallon capacity plant costs $500,00 ...

Cvp analysis in service companies please respond to one of

"CVP Analysis in Service Companies" Please respond to one of the following: Option 1 Imagine that you are the cost accounting manager and the director of your present or past organization. Management wants your opinion o ...

Discussion 1 and 2discussion 1select one of the following

Discussion 1 and 2 Discussion 1 Select one of the following tools: the nine steps in Ackerman and Anderson's roadmap for change, Cummings and Worley's five dimensions of leading and managing change, or the three componen ...

Task -task covers the application of conceptual and

Task - Task covers the application of conceptual and technical aspects of accounting and the preparation of business financial statements, the appraisal of the use of information technology including spreadsheet software ...

Essay question internal accountingone to two pages single

Essay Question Internal Accounting One to two pages (single spaced, Times New Roman 12 font) discussion. Clear and well-argued showing depth of knowledge and understanding of the concepts. Check grammar and spelling. Que ...

Using what youve learned from this phase compare accrual

Using what you've learned from this phase, compare accrual accounting to cash flow accounting. Discuss the strengths as weaknesses of each. Consider how each accounting system impacts a company's strategy formation and t ...

Assessment - written report - individual assessment purpose

Assessment - Written Report - individual assessment Purpose: This assessment is designed to reinforce the subject content and develop students' skills and application of knowledge of the subject content to business situa ...

1 weighted average cost method with perpetual inventory

1. Weighted average cost method with perpetual inventory (Page 349 of Accounting 25e Warren-Reeve-Duchac) The beginning inventory for RTE Office Supplies and data on purchases and sales for a three-month period are shown ...

Assignmentparticipation topic mandatoryinventory additional

Assignment Participation Topic (Mandatory) Inventory Additional Lecture Notes Class, Let me see if I can work up an example of how to calculate and use the different inventory methods. Let us use the following informatio ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro