Question

Answer true or false to the following statements 7. The current ratio is a measure of all the...

Answer true or false to the following statements 7. The current ratio is a measure of all the ratios calculated for the current year.

8. Inventory turnover measures the number of times on the average the inventory was sold during the period.

9. Profitability ratios are frequently used as a basis for evaluating management's operating effectiveness.

10. The rate of return on total assets will be greater than the rate of return on common stockholders' equity if the company has been successful in trading on the equity at a gain.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

7- FALSE- The current ratio is a measure of all the ratios calculated for the current year.

Current ratio is the ratio of current asset to current liability.it is calculated by dividing the current asset by current liability

8- TRUE-Inventory turnover measures the number of times on the average the inventory was sold during the period

It shows the relationship between cost of goods sold and stock

9- TRUE- Profitability ratios are frequently used as a basis for evaluating management's operating effectiveness.

Profitability refers to the ability of a firm to earn maximum profits.if the management is efficient then only the firm can earn profit

10- FALSE- The rate of return on total assets will be greater than the rate of return on common stockholders' equity if the company has been successful in trading on the equity at a gain.

this is not the true indicator.ROE should be greater than ROA.then only can say that the company in a good position

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Answer true or false to the following statements (Due 3/4/2020 - Please submit your answer)) 1.Intracompany...
Answer true or false to the following statements (Due 3/4/2020 - Please submit your answer)) 1.Intracompany comparisons of the same financial statement items can often detect changes in financial relationships and significant trends. 2.Analysis of financial statements is enhanced with the use of comparative data. 3. Horizontal, vertical, and circular analyses are the most common tools of financial statement analysis. 4. Another name for trend analysis is horizontal analysis. 5. In the vertical analysis of the income statement, each item...
The _____________ analysis involves taking all of the absolute figures on the company’s financial statements and...
The _____________ analysis involves taking all of the absolute figures on the company’s financial statements and converting them to percentages. ratio trend common-size All of the above. Which of the following is a category in ratio analysis? market ratios profitability ratios liquidity ratios All of the above. With ___________ analysis, you choose a particular base year and set every single figure in that year’s financial statement equal to 100%. You then look at subsequent years, comparing each individual line in...
The following data were taken from the financial statements of Gates Inc. for the current fiscal...
The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Property, plant, and equipment (net) $1,154,400 Liabilities: Current liabilities $177,000 Note payable, 6%, due in 15 years 888,000 Total liabilities $1,065,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during year) $1,597,500 Common stock, $10 par (no change during year) 1,597,500 Retained earnings: Balance, beginning of year $1,704,000 Net income 633,000 $2,337,000 Preferred dividends $63,900 Common dividends 143,100 207,000 Balance, end of...
Coca-Cola Purpose Financial ratio analysis is one of the best techniques for identifying and evaluating internal...
Coca-Cola Purpose Financial ratio analysis is one of the best techniques for identifying and evaluating internal strengths and weaknesses. Potential investors and current shareholders look closely at firms’ financial ratios, making detailed comparisons to industry averages and to previous periods of time. Financial ratio analyses provide vital input information for developing an IFE Matrix Financial Ratios for Coca-Cola (2018) Liquidity Ratios: - Current ratio: - Quick ratio: Leverage Ratios: - Debt-to-total-assets ratio: - Debt-to-equity ratio: - Long-term debt-to-equity ratio: -...
TRUE/FALSE Simply calculating the various ratios tells everything you need to know about a company. You...
TRUE/FALSE Simply calculating the various ratios tells everything you need to know about a company. You would expect a produce market to have a low inventory turnover ratio. The Acid Test Ratio uses only the most liquid current assets in its calculation. The Current Ratio uses only the most liquid current assets in its calculation. The Inventory Turnover Ratio indicates the number of times Accounts Receivable are turned into cash during the period. The Return on Sales Ratio indicates how...
Which one of the following ratios is a measure of a firm's liquidity? Group of answer...
Which one of the following ratios is a measure of a firm's liquidity? Group of answer choices Return on assets Current ratio Asset turnover Net profit margin Debt-equity ratio
Current Ratio= 2.33 Operating Profit Margin= 2.3% Quick Ratio= 0.8488 Total Debt to Equity= 1.21 Inventory...
Current Ratio= 2.33 Operating Profit Margin= 2.3% Quick Ratio= 0.8488 Total Debt to Equity= 1.21 Inventory Turnover= 4.12 Return on Assets= 1% Average Collection Period= 37.79 days Return on Equity= 2.22% Total Assets Turnover= 2.31 TIE= 1.46 Select two of the ratios you derived in Corrigan Corporation. Without re-stating the formula itself, explain what the ratio means in terms of the corporation’s financial health. The industry norms are provided below to use as comparative information. Points will be awarded based...
The ability of a company to collect receivables is measured by which ratio?      A. Day's sales...
The ability of a company to collect receivables is measured by which ratio?      A. Day's sales in receivables      B. Inventory turnover ratio C. Current ratio       D. Acid-test ratio The ability of a company to sell inventory is measured by which of the following ratios?      A. Inventory turnover ratio      B. Current ratio C. Day's sales in receivables      D. Acid-test ratio A company's ability to pay liabilities with current assets is measured by which of the following ratios?      A. Inventory turnover ratio     ...
Q9 to Q12- Write the formula for the following ratios and what each ratio measures: Return...
Q9 to Q12- Write the formula for the following ratios and what each ratio measures: Return on equity (ROE) Return on assets (ROA) Gross profit Gross margin Profit margin (also called the “net profit margin”) Asset turnover Fixed-Asset Turnover Inventory Turnover Inventory Period (also called “days inventory outstanding”) Collection Period (also called “account receivable period”) Payables Period (also called “account payable period”) Operating Cycle Cash Conversion Cycle Financial Leverage (also called “equity multiplier” ) Debt-to-assets ratio Debt-to-equity ratio Times interest...
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common...
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.80 on December 31, 20Y2. Question not attempted. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 1 20Y2 20Y1 2 Retained earnings, January 1 $3,716,000.00 $3,266,000.00 3 Net income 610,000.00 560,000.00 4 Total $4,326,000.00 $3,826,000.00 5 Dividends: 6 On preferred stock $10,000.00 $10,000.00 7 On common stock 100,000.00 100,000.00 8 Total dividends $110,000.00 $110,000.00 9...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT