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- How much net income did H&M’s tool, incorporated, generate during 2021? What was the net profit margin? Is the company financed primarily by liabilities or stock holders equity? What is its current ratio?1. Calculate the number of shares outstanding for the company and the market price per share at the end of 2020.2. Calculate the cash flow from operations, net capital spending, and the change in NWC to calculate the cash flow from assets. Then, calculate the cash flow to creditors and cash flow to shareholders to calculate the cash flow from assets from the “uses” side and confirm that the cash-flow identity is satisfied.1. What is the firm's net income in the current year? 2. What is the firm's dividend payment in the current year? 3. What is the firm's cash flow from operations? 4. What is the firm's cash flow from financing? What is the firm's cash flow from investing? 6. What is the firm's total change in cash from the prior year to the current year? Item Accounts payable Accounts receivable Accruals Cash Common Stock COGS Current portion long-term debt Depreciation expense Interest expense Inventories Long-term debt Net fixed assets Notes payable Operating expenses (excl. depr.) Retained earnings Sales Taxes Prior year 8,191.00 6,088.00 1,024.00 ??? 10,543.00 12,656.00 4,917.00 2,500 733 4,193.00 13,811.00 51,233.00 4,358.00 13,977 28,930.00 35,119 2,084 Current year 7,716.00 6,770.00 1,571.00 ??? 12,675.00 18,298.00 5,033.00 2,811.00 417 4,815.00 13,612.00 54,050.00 9,914.00 18,172 29,327.00 47,003.00 2,775
- Required: 1. What accounting events trigger changes in the retained earnings account?2. Explain the differences between cash flows from operating, financing, and investing activities. It is based on the statement of cash flows presented.3. If a company increases its accounts payable compared to the previous year, what will be the effect on the cash account?4. How do increases in fixed assets from one period to the next affect the cash account?5. List at least three working capital accounts that represent sources of cash for the firm and the changes the financial manager would have to make to those accounts to improve the cash account for the next firm's closing period.6. What does “decrease in short-term notes” mean in Davis Corporation, LLC's financial statement and how does it affect the cash balance at the end of the period?7. From Davis Corporation, LLC's statement of cash flows, discuss what may have caused the greatest change in the company's cash flow position for 20x9 compared…Using the data from Years n and n-1 below, answer the following questions. What are the company's assets, liabilities, and shareholder equity in Year n and n- I? What story does the balance sheet tell about changes in short term investments from Year n-1 to Year n? What story does the balance sheet tell about changes in notes payable from Year n-I to Year n? What is the company's net income in Year n and n-I? please provide answer and explain in detail for all answer all requirements with all working answer in textCalculation and interpretation of ratios. Data for White Star Limited: Net operating profit after tax is $25 million (2018: $38 million). 1. Use the information above to calculate for 2019 and 2018: a working capital b current ratio c quick ratio d debt-to-equity ratio e return on equity ratio f earnings per share ratio. 2. Identify two warning signals that could have negative implications with respect to the company ’ s ability to generate cash flows to meet its future needs. In each case, explain why the signal you have identified could reflect a cash flow problem. 3. At the annual general meeting of White Star, the managing director, Ms Rose Dawson, made the following statement: ‘ Recently a number of articles in the financial press have questioned the financial position of our company. This criticism is totally unjustified. Net profit was $25 million and total assets have increased by $160 million. These results show that 2019 was a very successful year for White Star. ’ Comment on…
- Required: Compute the necessary Liquidity Ratios for this year and last year to find out the liquidityposition of the company and justify the company's liquidity position in terms of growth and declineswith ratio proprtions.Under what situation will return on equity be higher than return on investment? a. When assets exceed liabilities. b. When the debt to equity ratio is greater than 1.0. c. When net income is higher than it was in the previous year. d. When a company earns more on borrowed money than the interest it must pay.based on the ratios what can you say about the company's liquidity? Is it liquid enough to convert its asset in to cash immediately or within one year?
- Following are the current asset and current liability sections of the balance sheets for Freedom Incorporated at January 31, 2023 and 2022 (in millions): Current Assets Cash Accounts receivable Inventories Total current assets Current Liabilities Note payable Accounts payable other accrued liabilities Total current liabilities Req A January 31, January 31, 2023 2022 $9 6 9 7 11 $ 22 $ 26 3 $5 $5 5 2 4 $ 14 Required: a. Calculate the working capital and current ratio at each balance sheet date. b. Evaluate the firm's liquidity at each balance sheet date. c. Assume that the firm operated at a loss during the year ended January 31, 2023. How could cash have increased during the year? Req B and C Working capital Current ratio Complete this question by entering your answers in the tabs below. 01/31/2023 4 $ 11 Calculate the working capital and current ratio at each balance sheet date. Note: Enter "Working capital" in millions of dollars (i.e., 10,000,000 should be entered as 10). Round your…Finding operating and free cash flows Consider the balance sheets and selected data from the income statement of Keith Corporation that follow. a. Calculate the firm's net operating profit after taxes (NOPAT) for this year. b. Calculate the firm's operating cash flow (OCF) for the year. c. Calculate the firm's free cash flow (FCF) for the year. d. Interpret, compare and contrast your cash flow estimate in parts (b) and (c). Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Assets Cash Marketable securities Accounts receivable Inventories Total current assets Gross fixed assets Less: Accumulated depreciation Net fixed assets Total assets Liabilities and Stockholders' Equity Accounts payable Notes payable Accruals Keith Corporation Balance Sheets Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity December 31 Income…If during the year a company has high cash flows from its operations, does this meanthat cash on its balance sheet will be higher at the end of the year than it was at thebeginning of the year? Explain.
