财务报表分析_第06章习题答案

1 Chapter 6 Liquidity of Short-term Assets: Related Debt-Paying Ability PROBLEMS

PROBLEM 6-1 Current Assets = Current Current Assets-Inventory = Acid- Current Liabilities Ratio Current Liabilities Test Ratio

Current Assets = 2.5 $1,000,000-Inventory = 2.0 400,000 $400,000

Current Assets = $1,000,000 $1,000,000-Inventory = 800,000 $1,000,000-$800,000 = Inventory $ 200,000 = Inventory

Cost of Sales = 3 Note: In order to work this Inventory problem, it must be assumed that the acid-test ratio is computed as follows:

Cost of Sales = 3 Current Assets-Inventory $200,000 Current Liabilities

Cost of Sales = $600,000

PROBLEM 6-2 a. Gross Receivables Days' sales in receivables = Net Sales/365

2003: $220,385 + $11,180 = 71.62 days $1,180,178/365

2002: $240,360 + $12,300 = 41.92 days $2,200,000/365

b. ceivablesReGrossAverageSalesNetturnoverreceivableAccounts

2003: yearpertimes87.42/)180,11$385,220$300,12$360,240($178,180,1$ 2

2002: yearpertimes98.82/)300,12$360,240$180,7$180,230($000,200,2$ c. The Hawk Company receivables have been much less liquid in 2003 in comparison with 2002. The days' sales in receivables at the end of the year have increased from 41.92 days in 2002 to 71.62 days in 2003. The accounts receivable turnover declined in 2003 to 4.87 from a turnover of 8.98 in 2002. These figures represent a major deterioration in the liquidation of receivables. The reasons for this deterioration should be determined. Some possible reasons are a major customer not paying its bills, a general deterioration of all receivable accounts, or a change in the Hawk Company credit terms.

PROBLEM 6-3 a. Days' sales in receivables = Gross Receivables Net Sales/365

December 31, 2003: $55,400 + $3,500 = 26.87 days $800,000/365

July 31, 2003: $90,150 + $4,100 = 43.55 days $790,000/365

b. Accounts receivable turnover = Net Sales Average Gross Receivables

December 31, 2003: $800,000 ($50,000 + $3,000 + $55,400 + $3,500)/2

14.30 times per year July 31, 2003: $790,000 ($89,000 + $4,000 + $90,150 + $4,100)/2

8.44 times per year c. This company appears to have a seasonal business because of the materially different days' sales in receivables and accounts receivable turnover when computed at the two different dates. The ratios computed will not be meaningful in an absolute sense, but they would be meaningful in a comparative sense when comparing the same dates from year to year. They would not be meaningful when comparing different dates. 3

PROBLEM 6-4 a. Days' sales in receivables = Gross Receivables Net Sales/365

L. Solomon Company days' $110,000 + $8,000 = 23.93 days sales in receivables = $1,800,000/365

L. Konrath Company days' $60,000 + $4,000 = 12.63 days sales in receivables = $1,850,000/365

b. It appears that the L. Konrath Company manages receivables better than does L. Solomon Company. They have 12.6 days' sales in receivables while the L. Solomon Company has 23.9 days' sales in receivables. Actually, we cannot make a fair comparison between these two companies because the L. Solomon Company is using the calendar year while the L. Konrath Company appears to be using a natural business year. By using a natural business year, the L. Konrath Company has its receivables at a low point at the end of the year. This would make its liquidity overstated at the end of the year.

PROBLEM 6-5 a. 365 days = 365 = 10.14 times per year Accounts receivable 36 turnover in days

b. 365 days = 30.42 days 12.0 times per year

c. Gross Receivables = $280,000 = 47.36 days Net Sales/365 $2,158,000/365

d. Net Sales = $3,500,000 = 10.80 times per year

Average Gross Receivables $324,000

PROBLEM 6-6 a. Ending Inventory = Days' Sales In Inventory Cost of Goods Sold/365

$360,500 = 62.66 days $2,100,000/365 4

b. No. Since J. Shaffer Company uses LIFO inventory, the ending inventory is computed using costs that are not representative of the current cost. The cost of goods sold is representative of the approximate current cost and, therefore, the average daily cost of goods sold is representative of current cost. When the average daily cost of goods sold is divided into the inventory, the result is an unrealistically low number of days' sales in inventory. Thus, the liquidity is overstated.

c. The number of days' sales in inventory would be a helpful guide when compared with prior periods. The actual computed number of days' sales in inventory would not be meaningful because of the LIFO inventory.