Chapter 11
Financial Statement Analysis
554
b) What does Crew Company’s quick ratio suggest about the company’s performance?
AP-11A (
5
)
Bo Kyung Company had a debt-to-equity ratio last year of 1.46. This year, the ratio is 2.0. Are
things getting better or worse? Explain your answer.
AP-12A (
4
5
)
Presented below are select figures from the balance sheet of Edison Company for 2016 and
2015.
Edison Company
Balance Sheet
As at August 31
2016
2015
Total Assets
$286,633 $203,311
Total Liabilities
119,006 69,873
Shareholders' Equity
167,627 133,438
In 2016, Edison Company had sales of $413,000 and net income of $46,500. Calculate the
ratios for 2016 as indicated below.
Return on Assets
Asset Turnover
Debt‐to‐Equity
Debt‐to‐Assets
