# Required in the middle column of the table provide

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Chapter 3 / Exercise 03
Fundamentals of Financial Management, Concise Edition
Brigham/Houston
Expert Verified
Required:In the middle column of the table, provide the formula to compute the specified ratio. In the final column, indicate the purpose (Liquidity, Solvency, Profitability, and Stock market strength) for which the ratio is most commonly used. The first item is completed as an example.
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Chapter 3 / Exercise 03
Fundamentals of Financial Management, Concise Edition
Brigham/Houston
Expert Verified
131.Krohn Company reported the following operating results for 2012 and 2013.Required:Express each income statement component for each of the two years as a percent of sales.
132.Comparative income statements for Richter Company are provided below:Required:Perform a horizontal analysis of Richter Company's income statement by computing percentage changes for each item from 2011 to 2012. Discuss the results.
133.Tevepaugh Company's balance sheet, with some missing amounts is provided below:Tevepaugh Company's working capital is \$138,000.Required:Compute the missing amounts. Record your answers in the following table:Note: Solve in the following order: C, E, B, A, D, I, H, G, F
134.Comparative income statements for Toomer Company are provided below:Required:Perform a horizontal analysis of Toomer Company's income statement by computing horizontal percentages for each item. 135.The following income statement was prepared by Davidson Company for 2012:Required:Perform vertical analysis for Davidson Company's 2012 income statement.
136.Paulsen Company provided the following income statement for 2011 and 2012.Required:a) Perform vertical analysis on Paulsen's income statements for 2011 and 2012.b) Comment on the results, comparing 2012 to 2011. 137.At the end of 2012, Davee Company had a current ratio of 1.87, a quick ratio of 1.31, and working capital of \$45,000. Its current assets consisted of cash, accounts receivable, and merchandise inventory.Required:Calculate the amount of Davee'sa) current liabilitiesb) current assetsc) inventory
138.The following information applies to Barnhart Company:Additional information: Net Credit Sales = \$220,000; Beginning Accounts Receivable = \$10,000.Required:Compute Barnhart'sa) Quick ratiob) Current ratioc) Working capitald) Accounts receivable turnovere) Average days to collect receivables
139.Eisenberg Corporation reported the following financial information for 2012:How many times did Eisenberg's inventory turn over during the year? 140.Many companies have to monitor some of their financial statement ratios, such as the current ratio, due to debt covenants. Selected transactions are provided below for a company that uses a perpetual inventory system; sells its merchandise at a selling price that exceeds cost; and had a current ratio of 1.85 before the event occurred.Required:In the above table, indicate whether each transaction would increase (+), decrease (-), or not affect (0) the company's working capital and the current ratio.
141.Many companies have to monitor closely certain ratios, such as the current ratio, due to debt covenants.