Imagine that you’ve been asked to explain 1 of the major accounting ratios to a group of high school students who have no background in business or accounting but are eager to learn. Choose 1 of the following ratios and describe how you would explain it in your own words, using a specific example: current ratio asset turnover profit margin on sales
Q: Viva sells its waterproof phone case for $85 per unit. Fixed costs total $102,000, and variable…
A: The contribution margin is calculated as difference between sales and variable costs. The…
Q: Using 2019 values and not averages, answer the following: c) What is the purchase to payment…
A: Cash Conversion Cycle:- There is basic discussion of working capital cycle of a business, which…
Q: 11. Bolsa Co. estimates that 60,000 special zipper will be used in the manufacture of industrial…
A: CALCULATION OF OPPURTUNITY COST Total amount invested = 60,000 special zipper X P6 per zipper…
Q: Question : 1. Which strategy will you recommend to management? Why? Explain your recommendation…
A: The concept of cost volume profit (CVP) analysis will be used and applied here. The CVP analysis…
Q: Required information [The following information applies to the questions displayed below.] Diego…
A: Solution... Variable cost per unit = Direct Material + direct labor + variable overhead +…
Q: Please provide short answers or by saying YES / NO to the following questions: a) All inter-company…
A: There are different terms that are used in accounting and those terms used in the accounting and…
Q: The following data relate to the operations of Picanuy Corporation, a wholesale distributor of…
A: The cash budget is the estimate of inflows and outflows within a specific period, as well as the…
Q: Miami Solar manufactures solar panels for industrial use. The company budgets production of 4,300…
A: Production budget :Sales budget is prepared to show the no. of units to be sold in the future period…
Q: Go to the CANSIM database and download monthly data, from January 1976 to January 2021, on the…
A: The moving point of the yield bend is an indication that market members are expecting an improvement…
Q: Phil took $60,000 coronavirus - related distribution from his qualified retirement plan in 2020…
A: During the Year commencing from January 1, 2020 to December 30, 2020, any qualified individual who…
Q: 0 rences Required information [The following information applies to the questions displayed below.]…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: chine is the current constraint at Jordison Corporation. onstrained resource. Data concerning those…
A: The contribution margin represents the excess of sales revenue over the variable costs. The products…
Q: What are decisions where relevant cost analysis might be used effectively, along with a description…
A: Decision 1: Make or Buy Decision A make or buy decision is a decision where a company must decide…
Q: Predict future total costs when sales volume is (a) 378,000 units and (b) 418,000
A: Introduction: - High-low method is one of the techniques that is used to separate fixed and…
Q: Irma and Darrell were divorced on November 1, 2019, after 22 years of marriage. Their current year's…
A: ANSWER :
Q: V6. Sean Grey acquired a 30% interest in Beau Grey Productions, LLC several years ago for $48,000.…
A: Answer:- Limited liability partnership meaning:- A limited liability partnership (LLP) is basically…
Q: Problem 7-6 Earned Income Credit (LO 7.2) Diane is a single taxpayer who qualifies for the earned…
A: Diane has 2 children. She is a single tax payer. To qualify for earned income tax credit (EITC), she…
Q: 10. A proprietor who just inherited a building is considering using it in a new business venture.…
A: Opportunity Cost :— It means income forgone from the next best alternative, while accepting another…
Q: Question: Is there an “ideal” number of factors in the Evaluation process? Should factors be limited…
A: There is no “ideal” number of factors for the Evaluation process, as it will depend on the scope and…
Q: In which department would an investigation of the materials price variance most likely begin?
A: When the actual price paid for materials used in manufacturing is different from the normal price…
Q: In the Insuring Agreement, what word is used to ensure all conditions are met to meet a condition?…
A: The word used to ensure all conditions are met to meet a condition is and. Option D is correct.
Q: EasyWriter manufactures an erasable ballpoint pen, which sells for $1.75 per unit. Management…
A: Break-even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…
Q: Depreciation is computed by the straight-line method with no salvage value. The company's cost of…
A: PAYBACK PERIOD Payback period is the most popular & widely Recognized traditional Method of…
Q: Levesque Company makes and sells lawn mowers for which it currently makes the engines. It has an…
A: The amount of money that is spent by a company to produce one unit of the product that they sell is…
Q: Questions # 21-22 are based on the following: Clothing Emporium was organized on January 1, 2021.…
A: Stockholder's Equity -Stockholder's Equity includes the amount contributed by shareholders issued in…
Q: Assuming situation (a), prepare the employer's September 30 journal entry to record the employer's…
A: Given in the question: FICA Social Security taxes 6.20% FICA Social Security taxes on…
Q: Required: (1) Compute the operating income or loss (2) What is the company's break-even point in…
A: Break Even Point is that point of sales at which Business Entity earn no profit also suffer no loss.…
Q: A Phil took $60,000 coronavirus -related distribution from his qualified retirement plan in 2020…
A: As per the guidelines of the CARES Act, special distribution schemes are made available for…
Q: Cycle Time and Velocity Bemidii Company has the following data for one of its production…
A: The question has asked to compute the following figures. Cycle time: Cycle time refers to the…
Q: The Owner's Capital has a beginning balance of P626,000. The owner gave P130,000 additional…
A: The transactions recorded in the books are generally based on double entry system of accounting . As…
Q: These are the selected anaswer provide to select accordingly towards the cash statement: decrease…
A: the cash flow statement is prepared under with the recording of the three activity name the…
Q: Assume that your hotel wants to have $1,000,000 in 12 years. Your hotel wants to start investing…
A: Time Value of Money :— According to this concept, value of money in present day is greater than the…
Q: Clothing Frontiers began operations on January stockholders' equity. January 1 Issues 600 shares of…
A: The first step of accounting to record the transactions is said to be journal entries. The shares…
Q: Liza's budgets sales of $42,000 for May and $54,000 for June. Assume 70% of Liza's sales are for…
A: Cash Receipt Budget :— This budget is prepared to estimate the collection of cash and credit sales…
Q: A company has the following: Cash $ 10,000 A/R 20,000 Supplies 5,000 Inventory 35,000 Marketable…
A: Solution: Correct answer : (a) $ 40,000 Working capital = current assets - Current liabilites…
Q: Bridgeport Company has hired a consultant to propose a way to increase the company's revenues. The…
A: Net Present Value :— It is the difference between present value of cash flows and initial capital…
Q: CorpCo gathered the following information at the end of the current fiscal year: Dividends on common…
A: The P-e ratio or price earnings ratio is the one which is determined to know if the per share value…
Q: from income? Answer area C
A: It is necessary for any one to pay the proper amount of taxes and by paying taxes one can have good…
Q: anice Dart signed a 140-day simple discount note at a rate of 9.9% with a maturity value of $82,000.…
A: calculation of Discount on original Note = Maturity value x Interest rate x (No.of days/365) =…
Q: y , U21, Music AT d exchange for a new machine. The note is to be paid in four equal payments of…
A: Installment notes are defined as liabilities. Installment note requires that they are to be repaid…
Q: On January 1, 2022, Affable Co. contracted with a contractor to construct a building for…
A: Capitalized interest is not immediately expensed on a company's income statement, in contrast to…
Q: 4, Below is the common-sized statement for the calendar year for Linen and Such and Household…
A: Common sized income statement is prepared to presents the items of the statement as a percentage of…
Q: Soler Inc. wishes to speed up collection of its receivables. Soler currently offers credit terms of…
A: Company give lot of discount to the customers to reduce the time required to recover money from…
Q: How much is the accounts payable credited if the company purchased merchandise on February 23, 2020,…
A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…
Q: The following data relate to the overhead expenditure of a business at two activity levels. Square…
A: Overhead costs, commonly referred to as overhead or operating expenses, are those expenses incurred…
Q: 40. Jupiter Inc. reports the following information for August: Sale revenue. Variable costs.. Fixed…
A: The contribution margin may be said on a gross or according to-unit basis. It represents the…
Q: On January 1, 2020, Vaughn Manufacturing issued 15,000 shares of $4 par value common stock for…
A: The journal entries are the first step of accounting to record the transactions on the regular…
Q: During Year 1, Evergreen Corporation had been negotiating to purchase all of Pine Company's noncash…
A: a) Computation of Goodwill recorded by Evergreen company Purchase price…
Q: V5. Assume that Nike decides to build a new warehouse complex at significant cost, financed with…
A: IN REPONCE TO NIKE DESISITION GROSS MARGIN Gross margin offers organisations a useful approach to…
Q: Failure to prepare the adjusting entry on accrued income will understate profit.
A: Accural means the expense have been incurred but not paid yet or the income has been earned but not…
In a minimum of 175 words
Imagine that you’ve been asked to explain 1 of the major accounting ratios to a group of high school students who have no background in business or accounting but are eager to learn. Choose 1 of the following ratios and describe how you would explain it in your own words, using a specific example:
current ratio - asset turnover
- profit margin on sales
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Imagine that you’ve been asked to explain 1 of the major accounting ratios to a group of high school students who have no background in business or accounting but are eager to learn. Choose 1 of the following ratios and describe how you would explain it in your own words, using a specific example: current ratio asset turnover profit margin on salesYour Task… Using your assigned financial statements calculate the required ratios below Indicate if the change from year to year is favorable or unfavorable. All values should be accurate to at least two decimal places. The expectation is to submit a professional report free of grammar and spelling errors and easy to read. Think of this as a menu you would be handing to a customer. All calculations are to be represented. Analysis of Profitability Gross Profit Ratio Operating Profit Ratio Net Profit Ratio Sales to Total Assets Ratio Return on Total Assets Return on Equity Earnings Per ShareYou have been asked by your CEO to evaluate, analyse and calculate commonly used ratios relating to a company’s profitability, liquidity, solvency and management efficiency. Requirement: ⦁ Complete the balance sheet and sales data (fill in the blanks), using the following financial data: Debt/net worth 60%Acid test ratio 1.2Asset turnover 1.5 timesDay sales outstanding in accounts receivable 40 daysGross profit margin 30%Inventory turnover 6 times Balance sheet Cash ________ Accounts payable ________Accounts receivable ________ Common stock RM15,000Inventories ________ Retained earnings RM22,000Plant & equipment ________ Total assets ________ Total liabilities ________& capitalSales ________Cost of goods sold ________ ⦁ Explain how do analysts use ratios to analyse a firm’s leverage? Which ratios convey more important information to a credit analyst those revolving around the levels of indebtedness or those measuring the ability to service debt? What is the relationship between…
- Ay 1. Using your financial analysis of Gap Clothing company, Refer to the Annual Reports located in the Class Resources. You will use information in the Form 10-K to complete this assignment. Using the correct formulas and a separate tab for each analysis, calculate the following ratios using Microsoft Excel: Three liquidity ratios for the past 2 years Three solvency ratios for the past 2 years Three profitability ratios for the past 2 yearsYou have been asked by your CEO to evaluate, analyse and calculate commonly used ratios relating to a company’s profitability, liquidity, solvency and management efficiency. Requirement: Complete the balance sheet and sales data (fill in the blanks), using the following financial data: Debt/net worth 60% Acid test ratio 1.2 Asset turnover 1.5 times Day sales outstanding in accounts receivable 40 days Gross profit margin 30% Inventory turnover 6 times Balance sheet Cash ________ Accounts…You have been asked by your CEO to evaluate, analyze and calculate commonly used ratios relating to a company’s profitability, liquidity, solvency and management efficiency. Requirement: Complete the balance sheet and sales data (fill in the blanks), using the following financial data: Debt/net worth 60% x 37,000 = 22,200 (debt) = AP Acid test ratio 1.2 x 22,200 = 26,640 Asset turnover 1.5 times Day sales outstanding in accounts receivable 40 days Gross profit margin 30% Inventory turnover 6 times Balance sheet Cash…
- Assignment 1 : Select a company. It is advised to choose the organization ( if it is listed ) where you are employed for this assignment. If your organization is not listed you may choose any other listed company from your industry or related industry. · Download last 3 years annual report. · Compute the financial ratios for last 3 years and see the trend [ Profitability ratios, Liquidity ratios, Activity Ratios, Financing Ratios, and Market Ratios ] . You need to do this exercise on an excel file. · Provide explanation on the strategic implications of these ratios on your company ’ s financial standing and strategy. You may explain in 2 - 3 lines for each category of ratios. [ Profitability ratios, Liquidity ratios, Activity Ratios, Financing Ratios, and Market Ratios ] . Use the same company as the one mentioned in Assignment 1 . • Part A: Strategic Analysis • Conduct a strategic analysis using PESTLE and Porter ’ s 5 forces tools for understanding the…The following are financial ratios for the company. You are required to answer the following questions. Year 5 Year 6 Year 7 ROA 2.87% 2.60% 4.13% Profit Margin 3.2% 2.9% 3.1% Assets Turnover 0.90 0.88 0.99 Accounts receivable Turnover 6.2 11.5 118.4 Inventory Turnover 6.1 6.0 5.8 Fixed Assets Turnover 1.3 1.4 1.5 collection period 58.6 31.7 3.1 59.6 60.9 62.5 inventory period %change in sales 7.66% 9.68% Between year 5 and 6, the increase in cost of goods sold and the decrease in inventory turnover is an indication of what? Provide evidence to your answer.The following are financial ratios for the company. You are required to answer the following questions. Year 5 Year 6 Year 7 ROA 2.87% 2.60% 4.13% Profit Margin 3.2% 2.9% 3.1% Assets Turnover 0.90 0.88 0.99 Accounts receivable Turnover 6.2 11.5 118.4 Inventory Turnover 6.1 6.0 5.8 Fixed Assets Turnover 1.3 1.4 1.5 collection period 58.6 31.7 3.1 inventory period 59.6 60.9 62.5 %change in sales 7.66% 9.68% 1. Explain the decrease in ROA between year 5 and year 6? And the increase between year 5 and 6?
- Question 1 Mabel is a potter and sells her pottery at stalls that she rents in four tourist information centres across the south of England. Extracts from her financial statements for the years ended 31 December 2021 and 2020 are shown below. Statement of profit or loss for the year ended 31 December: 2021 28,900 |(16,500) 12,400 (3,800) 8,600 |(4,000) 4,600 2020 Revenue 27,200 (14,000) 13,200 (3,600) 9,600 Cost of sales Gross profit Operating expenses Operating profit Non-operating expenses Net profit 9,600 Statement of financial position as at 31 December: 2021 Non-current assets Current assets Total assets 22,660 4,360 27,020 2020 20,920 3,750 24,670 Equity Non-current liabilities Current liabilities Equity and liabilities 20,940 3,000 3,080 27,020 16,340 3,500 4,830 24,670 The following information is also relevant: In July 2021 the rent on one of Mabel's stalls was increased significantly for the third time in three years so she decided not to renew the annual contract. She sold…5. Profitability ratios Profitability ratios help in the analysis of the combined impact of liquidity ratios, asset management ratios, and debt management ratios on the operating performance of a firm. Your boss has asked you to calculate the profitability ratios of Diusitech Inc. and make comments on its second-year performance as compared with its first-year performance. The following shows Diusitech Inc.'s income statement for the last two years. The company had assets of $4,700 million in the first year and $7,518 million in the second year. Common equity was equal to $2,500 million in the first year, and the company distributed 100% of its earnings out as dividends during the first and the second years. In addition, the firm did not issue new stock during either year. Diusitech Inc. Income Statement For the Year Ending on December 31 (Millions of dollars) Year 2 Year 1 2,540 2,000 1,610 1,495 127 80 1,737 803 80 723 181 542 Net Sales Operating costs except depreciation and…According to the information available in Income and Financial position statements (Image), calculate the following ratios for the business Competitors Average: - Net profit margin 31%- Gross profit margin 54%- Current ratio 2.87x- Acid test ratio 1.35x- Accounts receivable collection period 50 days- Accounts payable payment period 72 days
