The Cena and Lesnar, a retail clothier, has had average sales of $400,000 for the last five years,|2019-2015. The firm's total assets at the end of 2017 were $400,000.An internal staff cost analyst has prepared the following financial data from the annual reports.You have been hired as a consultant to help analyze the financial position.20192018201720162015Current Ratio2.802.432.362.102.00Acid Test Ratio2.031.931.821.611.47Days' Sales in ReceivablesMerchandise Inventory TurnoverDebt Ratio61585442354.204.104.103.903.700.480.500.490.470.47Times Interest Earned4.604.805.905.706.00Sales as a Percent of 1996 Sales1.461.231.121.061.00Net Income as a Percent of 1996Income1.311.201.101.061.00Gross Profit MarginOperating Expenses to Net SalesNet Profit Margin38.5%38.8%38.9%40.0%39.7%11.4%11.3%11.5%11.4%11.7%7.6%8.6%8.9%9.4%9.3%Return on Total Assets9.4%9.6%9.6%10.0%10.7%Required:a. Explain the trend in liquidity. Make specific reference to the effect of receivables andinventory on this trend.b. Briefly describe the trend in the long-term, debt-paying ability of Cena and Lesnar.Explain the cause(s) of this trend.Cena and Lesnar net profit margin has declined substantially. Cite and discussspecific causes of this.d. Have Cena and Lesnar utilized its total assets effectively? Discuss the ability ofCena and Lesnar to generate sales based on total assets. (Use DuPont analysis.)Specifically cite and briefly describe two additional types of information that wouldaid in your analysis.с.е.

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had average sales las 019-2015. The firm's total assets at the end of 2017 were $400,000. n internal staff cost analyst has prepared the following financial data from the an ou have been hired as a consultant to help analyze the financial position. 2019 2018 2017 2016 Current Ratio 2.80 2.43 2.36 2.10 Acid Test Ratio 2.03 1.93 1.82 1.61 Days' Sales in Receivables 61 58 54 42

had average sales las 019-2015. The firm's total assets at the end of 2017 were $400,000. n internal staff cost analyst has prepared the following financial data from the an ou have been hired as a consultant to help analyze the financial position. 2019 2018 2017 2016 Current Ratio 2.80 2.43 2.36 2.10 Acid Test Ratio 2.03 1.93 1.82 1.61 Days' Sales in Receivables 61 58 54 42

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter1: Introduction To Cost Management

Section: Chapter Questions

Problem 1E: Classify each of the following actions as either being associated with the financial accounting...

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The Cena and Lesnar, a retail clothier, has had average sales of $400,000 for the last five years,| 2019-2015. The firm's total assets at the end of 2017 were $400,000. An internal staff cost analyst has prepared the following financial data from the annual reports. You have been hired as a consultant to help analyze the financial position. 2019 2018 2017 2016 2015 Current Ratio 2.80 2.43 2.36 2.10 2.00 Acid Test Ratio 2.03 1.93 1.82 1.61 1.47 Days' Sales in Receivables Merchandise Inventory Turnover Debt Ratio 61 58 54 42 35 4.20 4.10 4.10 3.90 3.70 0.48 0.50 0.49 0.47 0.47 Times Interest Earned 4.60 4.80 5.90 5.70 6.00 Sales as a Percent of 1996 Sales 1.46 1.23 1.12 1.06 1.00 Net Income as a Percent of 1996 Income 1.31 1.20 1.10 1.06 1.00 Gross Profit Margin Operating Expenses to Net Sales Net Profit Margin 38.5% 38.8% 38.9% 40.0% 39.7% 11.4% 11.3% 11.5% 11.4% 11.7% 7.6% 8.6% 8.9% 9.4% 9.3% Return on Total Assets 9.4% 9.6% 9.6% 10.0% 10.7% Required: Have Cena and Lesnar utilized its…
The Clothes Clutch, a retail clothier, has had average sales of $400,000 for the last five years, 2018-2022. The firm's total assets at the end of 2020 were $400,000. An internal staff cost analyst has prepared the following financial data from the annual reports. You have been hired as a consultant to help analyze the financial position. 2022 2021 2020 2019 2018 Current Ratio 2.80 2.43 2.36 2.10 2.00 Acid Test Ratio 2.03 1.93 1.82 1.61 1.47 Days' Sales in Receivables 61 58 54 42 35 Merchandise Inventory Turnover 4.20 4.10 4.10 3.90 3.70 Debt Ratio 0.48 0.50 0.49 0.47 0.47 Times Interest Earned 4.60 4.80 5.90 5.70 6.00 Sales as a Percent of 1996 Sales 1.46 1.23 1.12 1.06 1.00 Net Income as a Percent of 1998 Income 1.31 1.20 1.10 1.06 1.00 Gross Profit Margin 38.5% 38.8% 38.9% 40.0% 39.7% Operating Expenses to Net Sales 11.4% 11.3% 11.5% 11.4% 11.7% Net Profit Margin 7.6% 8.6% 8.9% 9.4% 9.3% Return on Total Assets…
ABC Inc. has sales of $2,000,000 for the first quarter of 2019. In making the sales, the company incurred the following costs and expenses. Variable Fixed Product cost $760,000 $600,000 Selling expenses 95,000 60,000 Administrative expenses 79,000 66,000 Instruction: Prepare a CVP income statement for the quarter ended March 31, 2019.
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You are the vice president of finance of Sandy Alomar Corporation, a retail company that prepared two different schedules of gross margin for the first quarter ended March 31, 2020. These schedules appear below. Sales($5 per unit) Cost ofGoods Sold GrossMarginSchedule 1 $150,000 $124,900 $25,100Schedule 2 150,000 129,400 20,600The computation of cost of goods sold in each schedule is based on the following data. Units Costper Unit TotalCostBeginning inventory, January 110,000$4.00$40,000Purchase, January 108,0004.2033,600Purchase, January 306,0004.2525,500Purchase, February 119,0004.3038,700Purchase, March 1711,0004.4048,400Jane Torville, the president of the corporation, cannot understand how two different gross margins can be computed from the same set of data. As the vice president of finance, you have explained to Ms. Torville that the two schedules are based on different assumptions concerning the flow of inventory costs, i.e., FIFO and LIFO. Schedules 1 and 2 were not…