It520 Unit 1 Assignment 1

b. Comment on the five-year trend in net earnings as a percentage of sales and what this trend means to you as an investor in the company.c. Has the company’s liquidity improved or diminished over the five-year period? Justify your answer.Answer:a.The number of Home Depot stores has stayed rela±vely stable over the 2008-2012 period. The number of stores declined by 30 between 2008 and 2009, then increased slowly in 2010, 2011, and 2012 to a total number of 2,256 stores in 2012. This is near the number of stores in 2008 (2,274).b.The trend in the rela±onship of net earning to sales is strongly favorable, from 2008 to 2012, the percentage has steadily grown from 3.2% in 2008 to 6.1% in 2012. This represents over a 90% increase over the Fve-year period.c.As measured by the current ra±o, liquidity has increased. The current ra±o has improved from 1.20 (to 1) in 2008 to 1.34 (to 1) in 2012, although this ra±o declined from 1.55 (to 1) in 2011 to 1.34 (to 1) in 2012. Total working capital increased duringthe Fve-year period from $2,209 million to $3,910 million, although there was a signiFcant decline from $5,144 million to $3,910 million between 2011 and 2012. Another factor which sheds light on liquidity is that the inventory turnover has increased from 4.0 to 4.5 during the Fve-year period. This indicates how o²en inventory "turns over" or sells and is converted into receivables or cash. Generally, the higher this turnover is, the more liquid is the company because inventory is being converted into cash more rapidly.EXERCISE 14.11Ratios for a Retail StoreSelected financial data for Quick Sell, Inc., a retail store, appear as follows:

Questions? Leave a message!
With summaries written by fellow students, you are guaranteed to be properly prepared for your exams. Over 250,000 specific summaries are at your disposal. Your fellow students know exactly where the pitfalls lie and what the key elements will be to your success in that module. With their assistance, you can become well prepared and can avoid having to retake exams.
Thanks to the summaries written by fellow students specifically for your course and its modules, you will never miss a trick when it comes to your exams. No generic book summaries, but the specific content you need to ace your exams.
Have you written lots of lecture summaries or notes? Earn hundreds of pounds each month by selling your written material to your fellow students. Last year students earned over $ 500,000 from selling their work to other students.
Avoid resits and achieve higher grades with the best study notes written by your fellow students.
Categories: 1

0 Replies to “It520 Unit 1 Assignment 1”

Leave a comment

L'indirizzo email non verrĂ  pubblicato. I campi obbligatori sono contrassegnati *