Describe techniques of percentage analysis

Q: Gross profit margin Gross profit margin= Gross profit' revenue*100 Year Gross profit Revenue Gross…

A: Ratio analysis includes the comparison of the ratios with different companies and situations.

Q: Define the term Current ratio with example.

A: Ratio analysis: It is the financial analysis tool for measuring the profitability, liquidity,…

Q: Fixed Asset Turnover Fixed Asset Turnover Ratio = Sales Revenue / Total Fixed Assets Year 2020 2019…

A: given, ratio year   2020 2021 2022 fixed asset 21.82 12.13 11.03 total asset turnover…

Q: Set out and explain the function of the p/e ratio

A: P/E ratio is a vital valuation ratio used in relative valuation methods. The function of pe ratio…

Q: Define Factoring.

A: Accounts Receivable: It refers to the amount of money due to the company from the debtors.

Q: Identify major analytic ratios and describe their calculation

A: Accounting ratios are used by the company in checking the profitability, solvency, credit worthiness…

Q: Explain the reasoning underlying the name of the weighted-average method.

A: The reason in underlying the name of the weighted average method is explained as below,

Q: What is meant by internal benchmarking in ratio analysis

A: Internal benchmarking is a process in which a company or an organisation looks within its own…

Q: Village Shipping Inc. Income Statement Horizontal Analysis For the years ending December 31, 2014…

A: In ratio analysis we calculate the ratios of each year and a comparison is made between the result…

Q: differentiate and give illustrations of the difference between FIFO and Weighted Average.

A: Inventory Valuation - There are three method using which company can value their inventory a. FIFO…

Q: Define current ratio.

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: Accounts Payable Salary Payable Current Liabilities Long Term Debt Total Liabilities Common Stock…

A: In this question, we need to prepare common size balance sheet for the liabilities and equity…

Q: Common-Size Income Statement 2016 Revenues $ 29,970 % Cost of goods sold Gross profit Operating…

A: Common size analysis means where each item of balance sheet is expressed in form of percentage and…

Q: differences between Weighted Average and FIFO methods

A: Weighted Average and FIFO methods are used to value inventory of business.

Q: Current ratio= current assets/ current liabilities Year 2020 | 25,418,057 11,294,181 2.2505 2019…

A: 1. The current ratio is defined as the current assets divided by the current liabilities. Using the…

Q: Define estimates.

A: Estimates are future predictions of something. For example at the beginning of the year a business…

Q: explain what is The current ratio with a comprehensive example.

A: The objective of this question is to understand the concept of the current ratio, which is a key…

Q: analyze how the current rate method and the temporal method aff ect fi nancial statementsand ratios

A: The question is based on the concept of different pricing or cost methods used in accounting process…

Q: Target Corporation Common Size Income Statement Total revenue Cost of sales Selling, general and…

A: Common size statements are used for the analysis of financial statements. The Common Size Income…

Q: Define average collection period (ACP)

A: The formula used for calculating ACP is:

Q: Define the term average collection period?

A: Accounts receivable turnover analyzes the number of times accounts receivables is collected and…

Q: Compare and contrast trend analysis and comparative ratioanalysis

A: The key distinction between analysis and comparative analysis is that analysis may be a procedure in…

Q: Years 2020 2019 Current Assets 11.68 9.51 Current Liabilities 9.95 8.66 Current Ratio 1.17 1.09…

A: Financial Ratio:- These ratios are used in the comparison of data and performance of the two years…

Q: QUESTION 1- Analysis of Financial Statement and Cash Flow The balance shect and income statement for…

A: The ratios are given as follows -