explain the main reason for the change in the profitability for each company over the two years.
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explain the main reason for the change in the profitability for each company over the two years.
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- Assume that a company has decided to include "employee turnover" and "residual income" as performance measures within its balance scorecard. Which of the following choices reflects management's most likely expectations regarding how these measures should change over time? A) B) C) D) Employee turnover Increase Increase Decrease Decrease Multiple Choice. O O O O Choice A Choice B Choice C Choice D Residual Income Increase Decrease Increase DecreaseThe following information relates to a company for two periods: year 1; profit- GHC131250, sales- GHC1375000; year 2; profit- 225000, sales- GHC1750000. What is the sales level to earn a profit of GHC262500? O A. GHC2000000 OB. GHC1500000 OC. GHC1900000 D. GHC1000000choose true or false
- Suppose the following model describes changes in Company ABC’s sales: ∆ ABCt = 0.078 - 0.095(∆ ABCt-1) The current change (first difference) in the company’s sales growth rate is 0.04. Use this information to answer the questions below. (NB: For all the questions below, give your final answers to 3 decimal places.) 1. Calculate the mean-reverting level for changes in the company’s sales growth rate. (Give your answer in decimals). 2. What is the best prediction of the next change? (Give your answer in decimals) 3. What is the prediction of the change following the next change? (Give your answer in decimals) 4. blanks. Suppose we want to compute the four-quarter moving average of Company ABC’s sales as of the beginning of the first quarter of 2022. ABCs sales in the previous four quarters were as follows: 1Q 2021, R 1,200,000; 2Q 2021, R 800,000; 3Q 2021, R 750,000; and 4Q 2021, R 1,600,000. Calculate the four-quarter moving average of sales as of the beginning of the first…need both answerWhich of the following is most likely true concerning the stability and trend of earnings? 1. require at leaset 5 years of historical data to be meaningful 2. are not factored in the analysis of revenues 3. depend on the trend of a dingle industry 4. are key factors when calculating cost of sales
- As you review the ratio analysis of your company, you see that the Days Sales Outstanding over the last 2 years has gone from 37 to 44. List three things that could have caused this. Give specific examples.A colleague of yours has been reviewing the second-quarter income statements for a number of companies and is questioning a number of the expense items included in the statements. For each of the following independent questions, provide a written response to your colleague’s questions.1. A footnote accompanying Company A’s second-quarter income statement states that $360,000 was expended on research and development during the quarter on activities that should benefit operations over the next 24 months. Why does the second quarter reflect an expense of $120,000 rather than $15,000?2. Company B reported pretax income in both the first and second quarters, and the statutory tax rate during those periods and for the balance of the year is 30%. Assume that there were no net operating losses in prior years for tax purposes. However, both of the quarters reported an effective tax rate of less than 30%. What could possibly explain this?3. Assume the same facts as in part (2) except that the…
