Question

Which of the following can you NOT learn from the balance sheet? How a business is...

  1. Which of the following can you NOT learn from the balance sheet?

    1. How a business is being financed

    2. How much a business spends on cost of goods sold

    3. How much a business might be worth

    4. Whether the business is likely to meet their current payment obligations

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Option A is correct


i.e How a business is being financed

Because

For a given date, the Balance sheet shows the following for the company:

Firstly, total Assets. Items of value the firm owns or controls, which it uses to earn revenues.
Secondly, total Liabilities. What the firm owes.
Thirdly, total Owners Equities. What the firm owns outright.
More accurately, the Balance sheet shows end-of-period balances in the firm's Assets, Liabilities, and Owners Equity accounts. However, its name includes "Balance" for another reason.

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
You have the following balance sheet and income statement information for Epic Corp.: Balance sheet $...
You have the following balance sheet and income statement information for Epic Corp.: Balance sheet $ Accounts receivable (A/R) 2,200 Inventory 3,400 Accounts payable (A/P) 870 Income statement $ Sales 6,800 Cost of goods sold (COGS) 5,440 All sales and purchases were on credit. 1. How long is the days' sales in inventory (in days)? 2. How long is the average collection period (in days)? 3. How long is the average payment period (in days)? 4.How long is the cash...
Indicate which of the financial statements (Income Statement, Statement of cash flow, Balance Sheet, statement of...
Indicate which of the financial statements (Income Statement, Statement of cash flow, Balance Sheet, statement of Changes of in equity) each of the following would be reported? Select as many as are appropriate. Cash Unearned revenue Net income Cost of goods sold Dividends declared Prepaid insurance Service revenue Warranty obligations Dividends paid
BALANCE SHEET ANALYSIS Complete the balance sheet and sales information using the following financial data: Total...
BALANCE SHEET ANALYSIS Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.3x Days sales outstanding: 38 daysa Inventory turnover ratio: 4x Fixed assets turnover: 2.5x Current ratio: 2.3x Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 30% aCalculation is based on a 365-day year. Do not round intermediate calculations. Round your answer to the nearest cent. Balance Sheet Cash $   Current liabilities $   Accounts receivable    Long-term debt 65,000...
Your company had the following balance sheet and income statement information for 2003: Balance sheet: Cash                        &nb
Your company had the following balance sheet and income statement information for 2003: Balance sheet: Cash                                        $    20 A/R                                         1,000 Inventories                           5,000 Total C.A.                              $ 6,020                       Debt          $ 4,000 Net F.A.                                  2,980                        Equity          5,000 Total Assets              $ 9,000                       Total claims $ 9,000 Income statement: Sales                                       $10,000 Cost of goods sold    9,200 EBIT                                       $   800 Interest (10%)                         400 EBT                                         $   400 Taxes (40%)                             160 Net Income                           $   240 The industry average inventory turnover is 5. You think you can...
Section 2: Assume the following Balance Sheet for a company: BALANCE SHEET ASSETS Cash $ 5,000...
Section 2: Assume the following Balance Sheet for a company: BALANCE SHEET ASSETS Cash $ 5,000 Accounts Receivable $125,000 Inventory $200,000 Land $70,000 Buildings $200,000 Less: Accumulated Depreciation $100,000 Total Assets $500,000 LIABILITIES AND EQUITY Accounts Payable $100,000 Income Tax Payable $50,000 Mortgage Loan $200,000 Common Stock $100,000 Retained Earnings $50,000 Total Liabilities and Equity $500,000 Compute the current ratio for this company. Group of answer choices 3.25 2.20 3.30 2.17 Using the same Balance Sheet from the prior question,...
The following information is from a firm’s 2018 income statement and balance sheet. Use it to...
The following information is from a firm’s 2018 income statement and balance sheet. Use it to calculate the Cash Conversion Cycle (8 points) Sales 122,800 Cost of Goods Sold 104,380 Accounts Receivable 10,900 Inventory 1,420 Accounts Payable 22,640
​(Pro forma balance sheet construction​) Use the following​ industry-average ratios to construct a pro forma balance...
​(Pro forma balance sheet construction​) Use the following​ industry-average ratios to construct a pro forma balance sheet for​ Karen's Beauty​ Products, Inc.: ​(Pro forma balance sheet construction​) Use the following​ industry-average ratios to construct a pro forma balance sheet for​ Karen's Beauty​ Products, Inc.: Total asset turnover 1.6 times Average collection period​ (assume 365-day​ year) 14 days Fixed asset turnover 6 times Inventory turnover​ (based on cost of goods​ sold) 3 times Current ratio 1.9 times Sales​ (all on​ credit)...
The following information is from a firm’s 2018 income statement and balance sheet. Use it to...
The following information is from a firm’s 2018 income statement and balance sheet. Use it to calculate the Cash Conversion Cycle. (Please show your work) Sales 122,800 Cost of Goods Sold 104,380 Accounts Receivable 10,900 Inventory 1,420 Accounts Payable 22,640
What information from the list below can I get from the Balance Sheet? to. Liquidity and...
What information from the list below can I get from the Balance Sheet? to. Liquidity and solvency of the business b. Earnings in a given period c. Percentage of food cost d. Beverage cost percentage
Balance Sheet: Cash $       20 A/R 1,000 Inventories     2,000 Total current assets $ 3,020 Net...
Balance Sheet: Cash $       20 A/R 1,000 Inventories     2,000 Total current assets $ 3,020 Net fixed assets     2,980 Total assets $ 6,000 Income Statement: Sales $10,000 Cost of goods sold     9,000 EBIT $ 1,000 Interest (10%)        600 EBT $     400 Taxes (40%)        160 Net Income $     240 The industry average DSO is 18 (360-day basis). Collins plans to change its credit policy so as to cause its DSO to equal the industry average, and this...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT