Description
- Presentation “Powerpoint“
- Report:
Word count: 750 Max
Double space
Required:
In a report format that must include
Introduction
Body
Conclusion
References
750 words
At least 2 academic references (10 Points)
(1) Current ratio
(2) Accounts receivable turnover
(3) Average collection period (in days)
(4) Inventory turnover
(5) Days in inventory
(6) Current cash debt coverage
(7) Profit margin
(8) Asset turnover
(9) Return on assets
(10) Return on common stockholders’ equity
(11) Debt to assets ratio
(12) Times interest earned
(13) Cash debt coverage
(14) Free cash flow
(b) Compare and comment on the liquidity, solvency and profitability ratios of the two companies (12 points).
(c) Presentation must be given in class "PowerPoint 10 Slides" 10 minutes at least in total (10 points).
Check attached PDF
Unformatted Attachment Preview
Purchase answer to see full attachment
Explanation & Answer
attached is my complete answer
Running head: RATIOS CALCULATION OF ALMARAEI AND ALSAFI, INC.
Ratios Calculation of ALMARAEI and ALSAFI, Inc.
Course’s Name
Student’s Name
Professor’s Name
Institution
Due Date
1
Running head: RATIOS CALCULATION OF ALMARAEI AND ALSAFI, INC.
2
Ratios Calculation of ALMARAEI and ALSAFI, Inc.
Introduction
ALMARAEI is a Saudi-based combination, recorded on the Tadawul stock trade.
It has some expertise in drink and food distribution and production. The primary
workplaces of ALMARAEI are situated in Saudi Arabia. On the other hand, ALSAFI Inc.
is a French global enterprise for food-products founded in Spain. Indeed, the company
has been supplying clients over the area with heavenly crisp dairy goodness. Every
product offered by ALSAFI Inc. is from pure and nutritious cow's milk, which contain
the main sources of vitamins and calcium.
Body
(a) Based on the given financial statements for 2017 of the two companies, we
can calculate all of the given ratios for ALMARAEI and ALSAFI, Inc.
(1) The current ratio of ALMARAEI is computed by:
Current assets
$18, 424
=
= 0.706
Current liabilities $26,109
Current ratio =
Similarly, the current ratio of ALSAFI, Inc. is computed by:
Current ratio =
Current assets
$48,331
=
= 0.870
Current liabilities $55,561
(2) The accounts receivable turnover of ALMARAEI is computed by:
Accounts receivable turnover =
Net sales
$65,357
=
= 8.685
Average net accounts receivable $7,525
Similarly, the accounts receivable turnover of ALSAFI, Inc. is computed by:
Accounts receivable turnover =
Net sales
$408,214
=
= 101.420
Average net accounts receivable
$4,025
(3) The average collection period (in days) of ALMARAEI is computed by:
Running head: RATIOS CALCULATION OF ALMARAEI AND ALSAFI, INC.
Average net accounts receivable
Net sales / 365
$7,525
Average collection period =
$65,357 / 365
Average collection period = 42.02 days
Average collection period =
Similarly, the average collection period (in days) of ALSAFI, Inc. is computed by:
Average net accounts receivable
Net sales / 365
$4,025
Average collection period =
$408,214 / 365
Average collection period = 3.60 days
Average collection period =
(4) The inventory turnover of ALMARAEI is computed by:
Cost of goods sold
Average inventory
$45,583
Inventory turnover =
$6,942
Inventory turnover = 6.57
Inventory turnover =
The inventory turnover of ALSAFI, Inc. is computed by:
Cost of goods sold
Average inventory
$304,657
Inventory turnover =
$33,836
Inventory turnover = 9.00
Inventory turnover =
(5) The days in the inventory of ALMARAEI is computed by:
Average inventory
Cost of good...