Current asset

Once the vehicle is sold, the dealer is required to pay Ford the balance (Auto Blog, 2008). Before going further it should be explained Ford Motor Company has two distinct divisions on its annual financial reports: automotive and financial services (Ford Motor Credit). The annual report contains both consolidated and sector income statements, balance sheets, and statements of cash flow. The ratios calculated on Appendix F are from the consolidated reports and have combined assets and liabilities in those…

Having an allowance for doubtful accounts gives a lower net realizable value for accounts receivable. This reduces both current assets and the current ratio. The new current ratio is listed in Figure 3. However, accounts receivable is involved in another special ratio—days to collect receivables. This ratio is shown on Figure 5 at the top of the next page and can be found by dividing 365 by the accounts receivable turnover. As you can see, the number of days to collect receivables has increased…

Current assets divided by current liabilities will yield the current ratio. In an example from the financial statement of the University of Chicago Medical Center (UOCMC), of June 30, 2012 and 2011 the total current assets of $356,442 divided by the total liabilities of $190,257 in 2012 yielded a current ratio of 1.87. A current ratio of 1.5 is considered good in most industries. As the number reaches or goes under one, this identifies the company has a negative working capital (Kennon, J.…

In the past year, the company GAP has seen a steady decrease in their stock prices which has been caused by a couple of different things. A change in management and poor communication within new management has caused sales to steadily decrease. One effect of this poor communication in management is that GAP’s inventory is not well organized, which hurts the net cash flow of the company. The old system used to order inventory was “by gauging the response [to the product], the management [was]…

Conclusions • Current ratio is within the industry’s healthy range but ideally should be over 2. There has been a sufficient decrease in current ratio in comparison to the previous year indicating your business may have problems meeting your short-term obligations. • Quick ratio is below the industry average and decreased from the previous year. The business does not have enough adequate current assets, without inventory, to cover short-term debt. • Inventory turnover is lower from the previous…

its principle banks that Mr. Winthrop pressed for their business. The company has proven itself to be a sustainable business, and a low risk borrower for lenders. Additionally, the company’s current ratio, a ratio that divided current assets by current liabilities to show a businesses ability to meet its current obligations, is currently a strong 5.99 (Appendix 1). Also, the current ratio has increased every month for the past seven months (Oct. 1990-March 1991, excel sheet). The current ratio…

Operations is a pretty large company, with total dollar sales of $900.5 million (Cara Reports Q2 2016 Results, 2016). Market capitalization is equal to the current share price of the company multiplied by the number of outstanding shares of the company. Cara’s current stock price is $24.84 and their number of shares outstanding are 24.43M. Therefore, Cara’s market capitalization would be $24.84 x 24.43M = $606.8M. CHL will continue to hold 14,492,906 Multiple Voting Shares, representing…

constrained. Tesla intends to enhance their influence on the current markets with their current products. They also market their electric powertrain components to other automakers (2014).” Tesla is really focusing on working on market penetration and all related to it, so the company wants to penetrate in the market using their current products and offering tis product to other car companies. However, it is important note that the company not only make cars, but also works on technology, design,…

12% of their total expenses. In terms of solvency, Lincoln Electric’s ratios are strong. Their current ratio is 2.31, which is well above 1, showing that they are able to pay off short-term obligations. The quick ratio is also above 1, but not as high as the current ratio. However, Lincoln Electric still has more than enough liquid assets to cover short-term obligations. When looking at long-term solvency there seems to be no issues because the company does not have any long term debt. Lincoln…

After reviewing the information about A-1’s company, it is evident that due to it reaching capacity at its current facility and nearly exhausting its customer market, A-1 must make a change if it wants to continue to improve profits. Although there are several paths that A-1 could take, the best one is as follows: A-1 should purchase another facility in a location just outside of its current customer base. One facility should be used for the finishing of metal products and the other devoted to…