Financial Analysis ProjectName:Hassan Isse Answer Sheet SHOW ALL YOUR WORKJ •Calculate the 2021 (year ended 12/31/21) current ratio for Twitter. ( 6 pts) Current Ratio = Current Assets Current Liabilities Current Ratio = $7,918,370 $1,343,867 Current Ratio = 5.89 •Calculate the 2021 (year ended 12/31/2021) current ratio for Meta. (6 pts) Current Ratio = Current Assets Current Liabilities Current Ratio = $66,666 $21,135 Current Ratio = 3.15 •Which company has a better current ratio and why?Explain in a short paragraph. ( 4 pts) Twitter has a better current ratio in contrast to that of Meta predominantly because the higher the current ratio, the better. A higher current ratio is an indication of lower risk and implies that the company has enough cash to pay off its immediate debts and liabilities.
•Calculate the 2021 accounts receivable turnover ratio for Twitter. (6 pts) Accounts Receivable Turnover Ratio = Net Credit Sales Average Accounts Receivables Accounts Receivable Turnover Ratio = $5,077,482 ($1,217,404+$1,041,743) 2 Accounts Receivable Turnover Ratio = 4.495 times •Calculate the 2021 accounts receivable turnover ratio for Meta. (6 pts) Accounts Receivable Turnover Ratio = Net Credit Sales Average Accounts Receivables Accounts Receivable Turnover Ratio = $117,929 ($14,039+$11,335) 2 Accounts Receivable Turnover Ratio = 9.295 times •Calculate the average collection period for each company. (8 pts) Show answer as number of days plus 2 decimals. Average Collection Period = 365 Accounts ReceivableTurnover Ratio Average Collection Period (Twitter) = 365 4.495 Average Collection Period (Twitter) = 81.20 days
Expert's Answer
Chat with our Experts
Want to contact us directly? No Problem. We are always here for you
Your future, our responsibilty submit your task on time.
Order Now
Get Online
Assignment Help Services
