Reference no: EM131976726

Question: Current Liabilities and Cash Flow

Activity Context: Revisit the Course Alignment Map to review how all activities assist you in achieving the course competencies and overall program outcomes.

Activity Instructions: In this assessment, you will compute working capital and the quick ratio. Based on your computations, you will interpret and explain the implications of working capital and the quick-ratio results.

CP9-2 Finding Financial Information

Refer to the financial statements of Urban Outfitters given in Appendix C at the end of this book.

Required: 1. What is the amount of accrued compensation at the end of the most recent reporting year? (Dollars in thousands.)

2. As reported on the Statement of Cash Flows, by what amount did accounts payable, accrued expenses and other current liabilities change over the most recent reporting year? (Dollars in thousands.)

How did this change affect cash flows from operating activities during the most recent reporting year?

3. What is the amount of long-term liabilities at the end of the most recent reporting year? (Dollars in thousands.)

E13-5 Matching Each Ratio with Its Computational Formula

Match each definition with its related ratios or percentages by selecting the appropriate letter in the drop down provided.

Definitions:

A. Net Income (before extraordinary items) ÷ Net Sales

B. Days in Year ÷ Receivable Turnover ratio

C. Net Income ÷ Average Stockholders' Equity

D. Net Income ÷ Average Number of Shares of Common Stock Outstanding

E. Return on Equity - Return on Assets

F. Quick Assets ÷ Current Liabilities

G. Current Assets ÷ Current Liabilities

H. Cost of Goods Sold ÷ Average Inventory

I. Net Credit Sales ÷ Average Net Receivables

J. Days in Year ÷ Inventory Turnover Ratio

K. Total Liabilities ÷ Stockholders' Equity

L. Dividends per Share ÷ Market Price per Share

M. Market Price per Share ÷ Earnings per Share

N. [Net Income + Interest Expense (net of tax)] ÷ Average Total Assets

O. Cash from Operating Activities (before interest and taxes) ÷ Interest Paid

P. Net Sales Revenue ÷ Net Fixed Assets

Q. (Net Income + Interest Expense + Income Tax Expense) ÷ Interest Expense

Information related to above question is enclosed below:

Attachment:- Information.rar