The initialperiod 4dialoguepost has two parts. To complete the first part of your post, read the attached Upstate NY Real Estate .pdffileandindicate your leasing decision. Cite specific ratios and...

1 answer below »

View more »
Answered 4 days AfterApr 27, 2023

Answer To: The initialperiod 4dialoguepost has two parts. To complete the first part of your post, read the...

Sandeep answered on May 01 2023
36 Votes
Yes, PP has sufficient reason to believe that Mission Furniture business are stable and earning with ability to generate cash from Operations to mee the Short-Term Financials obligations.
This is further corroborated by the following Fi
nancial Ratio’s and Analysis:
    Liquidity Measurement Ratios
    20X5
    20X6
    20X7
    
    
    
    
    Current Ratio = Current Assets/Current Liabilities
    2.74
    9.90
    10.94
    
    
    
    
    Quick Ratio= (Current Assets - Inventory)/Current Liabilities
    1.27
    4.45
    4.90
    
    
    
    
    DSO = (AR(Opening) + AR(Closing))2/Revenue/365
    10.17
    9.79
    10.15
    
    
    
    
    DIO = ((Inventory Opening + Inventory Ending)/2)/COGS/365
    76.37
    70.63
    69.01
    
    
    
    
    Operating Cycle = DSO + DIO
    86.54
    80.42
    79.16
    
    
    
    
    DPO = (AP(Opening) + AP(Closing))2/Revenue/365
    10.02
    8.84
    7.86
    
    
    
    
    CCC = DSO +DIO -DPO
    76.52
    71.58
    71.30
    
    
    
    
    Inventory Turnover Ratio=
    2.20
    2.46
    2.50
    
    
    
    
    Receivable Turnover Ratio
    35.88
    37.27
    35.96
    
    
    
    
    Payable Turnover
    16.79
    19.62
    21.91
    Debt Ratios
    
    
    
    
    
    
    
    Debt Ratio = Total Liabilities/Total Assets
    0.262
    0.131
    0.056
    
    
    
    
    Debt Equity Ratio = Total Liabilities/Total Equity
    0.356
    0.150
    0.060
    
    
    
    
    Interest Coverage Ratio =EBIT/Interest Expense
    269.83
    285
    212.75
    
    
    
    
    Operating Performance Ratios
    
    
    
    
    
    
    
    Fixed Asset Turnover= Revenue/NetPPE
    3.27
    3.59
    3.59
    
    
    
    
    Asset Turnover = Revenue/Total Avg. Assets
    1.28
    1.38
    1.41
    
    
    
    
    Cash Flow Indicator Ratios
    
    
    
    
    
    
    
    Operating Cash Flow Sales = Operating Cash Flows/Revenue
    19.34%
    19.32%
    19.36%
    
    
    
    
    Cash Flow Coverage = Operating Cash Flows/Total Debt
    1.81
    40.91
    45.60
    Profitability Indicator Ratios
    20X5
    20X6
    20X7
    
    
    
    
    Gross Profit Margin = Gross Profit/ Revenue
    53.91%
    52.49%
    52.82%
    
    
    
    
    Operating Profit Margin = Operating Income/Revenue
    17.09%
    17.18%
    17.21%
    
    
    
    
    Pre-Tax Profit Margin
    17.03%
    17.12%
    17.13%
    
    
    
    
    Net Profit Margin
    12.18%
    11.04%
    11.57%
    
    
    
    
    NI per EBT=Net Income/EBT
    71.54%
    64.50%
    67.53%
    
    
    
    
    EBT per EBIT =EBT/EBIT
    99.63%
    99.65%
    99.53%
    
    
    
    
    EBIT per Revenue=EBIT/Revenue
    17.09%
    17.18%
    17.21%
My Analysis:
Mission...
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here
April
January
February
March
April
May
June
July
August
September
October
November
December
2025
2025
2026
2027
SunMonTueWedThuFriSat
30
31
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
1
2
3
00:00
00:30
01:00
01:30
02:00
02:30
03:00
03:30
04:00
04:30
05:00
05:30
06:00
06:30
07:00
07:30
08:00
08:30
09:00
09:30
10:00
10:30
11:00
11:30
12:00
12:30
13:00
13:30
14:00
14:30
15:00
15:30
16:00
16:30
17:00
17:30
18:00
18:30
19:00
19:30
20:00
20:30
21:00
21:30
22:00
22:30
23:00
23:30