Please use the table above to answer the following questions: a. Discuss the trend analysis on how Cari Farm performed over the period for each ratio category. b. Report on how Cari Farm performed as compared to the industry norms for each ratio category. c. Calculate the return on assets (ROA) as a percent and the return on equity (ROE) as a percent.

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter8: Current And Contingent Liabilities
Section: Chapter Questions
Problem 2MCQ
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Aa v
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Body Text
List Paragraph
No Spacing
Table Par
-Ov A v
Question 1: In the table below, you are given the financial performance indicators forCari Farm
during the period 2018 to 2020.
田
Cari Farm
Industry
Performance Area
2018
2019
2020
2018
2019
2020
Leverage:
Assets/Equity
Debt/Equity (%)
Interest Coverage
0.81
1.21
0.92
1.00
1.20
1.15
101.3
81.5
81.6
73.0
77.0
81.0
1.63
2.78
2.04
4.00
3.50
3.30
Liquidity:
Current Ratio
1.22
1.49
1.45
2.00
1.70
1.50
Acid-test Ratio
1.10
1.30
1.20
1.00
0.90
0.90
Profitability:
Profit Margin (%)
11.77
15.58
10.81
15.60
15.71
15.80
Efficiency:
Revenue/Assets
0.47
0.49
0.50
0.60
0.62
0.68
Please use the table above to answer the following questions:
a. Discuss the trend analysis on how Cari Farm performed over the period for each ratio
category.
b. Report on how Cari Farm performed as compared to the industry norms for each ratio
category.
c. Calculate the return on assets (ROA) as a percent and the return on equity (ROE) as a
percent.
nited States)
O Focus
MacBook Pro
80
000
DII
DD
F3
F4
E5
F6
F7
F8
F9
F10
23
$
%
&
*
3
Transcribed Image Text:Aa v AaBbCcDdEe AaBbCcDdE AaBbCcDdEe Normal Body Text List Paragraph No Spacing Table Par -Ov A v Question 1: In the table below, you are given the financial performance indicators forCari Farm during the period 2018 to 2020. 田 Cari Farm Industry Performance Area 2018 2019 2020 2018 2019 2020 Leverage: Assets/Equity Debt/Equity (%) Interest Coverage 0.81 1.21 0.92 1.00 1.20 1.15 101.3 81.5 81.6 73.0 77.0 81.0 1.63 2.78 2.04 4.00 3.50 3.30 Liquidity: Current Ratio 1.22 1.49 1.45 2.00 1.70 1.50 Acid-test Ratio 1.10 1.30 1.20 1.00 0.90 0.90 Profitability: Profit Margin (%) 11.77 15.58 10.81 15.60 15.71 15.80 Efficiency: Revenue/Assets 0.47 0.49 0.50 0.60 0.62 0.68 Please use the table above to answer the following questions: a. Discuss the trend analysis on how Cari Farm performed over the period for each ratio category. b. Report on how Cari Farm performed as compared to the industry norms for each ratio category. c. Calculate the return on assets (ROA) as a percent and the return on equity (ROE) as a percent. nited States) O Focus MacBook Pro 80 000 DII DD F3 F4 E5 F6 F7 F8 F9 F10 23 $ % & * 3
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