If a company’s current ratio declined in a year during whichits quick ratio improved, which of the following is the mostlikely explanation?a. Inventory is increasing.b. Inventory is declining.c. Receivables are being collected more rapidly than inthe past.d. Receivables are being collected more slowly than inthe past.

Q: g of accounts receivable shows the following: P300,000 already 1-30 days past due; P200,000 already…

A: The accounts receivables are amount of money to be received from the customers those have purchased…

Q: This year your company has purchased less expensivemerchandise inventory but has not changed its…

A: Gross Profit is a difference between Net sales and Cost of goods sold. The formula for calculating…

Q: Use the following information for the Exercises below. (Algo) [The following information applies to…

A: Lets understand the basics. There are two types of analysis are made by the entity which are, (1)…

Q: When analytical procedures disclose unexpected changes in financial relationships relative to prior…

A: Analytical procedures are those procedures or processes which are being used by the auditor in order…

Q: Problem The manager of the company X would like to check the evolution of Profit rate for 2…

A: Profit ratio refers to the financial ratio that is helpful in estimating the financial position of…

Q: t 2 of 3-B Suppose the following model describes changes in Company ABC's sales: AABCt = 0.078 -…

A: The sales growths are changing and change in sales depends on the change in sales of previous change…

Q: ames Madison was brought in as assistant to Computron’s chairman, who had the task of getting the…

A: Average inventory=2019 inventory+2020 inventory2=$1,546,252+$1,779,5722=$1,662,912

Q: Assume that you are the president of your company and paid a year-end bonus according to the amount…

A: Inventory can be valued under any of three methods. They are 1.FIFO 2. LIFO 3.Weighted average…

Q: Use the formulas you learned about in the previous stage of the problem to answer the following…

A: Ratio analysis is a quantitative method to determine liquidity, operational efficiency, and…

Q: A sales manager collected the following data on x = years of experience and y = annual sales…

A: To address the problem, let's break it down step by step:(a) Compute SST, SSR, and SSESST (Total…

Q: Which of the following changes in credit standards and terms would cause a decrease in profit? A)…

A: Changes in credit standards and credit terms have a meaningful impact on the profitability of the…

Q: What is the comparison (analysis) of the Quick Ratio of Industry Average Ratio and the Company A…

A: Quick ratios is one of the liquidity ratios that helps the investors and the managers to analyze the…

Q: Answer each of the questions in the following unrelated situations. (a) The current ratio of a…

A: Since you have posted multiple questions, we will provide the solution only to the first question as…

Q: What relationship exists between the average collection period and accounts receivable turnover?…

A: Introduction:- Accounts receivable turnover ratio tells the number of times a company collects its…

Q: Inventory levels decreased from 2008 to 2009 for all of the following reasons except:A. LIFO…

A: C. fluctuations in foreign currency translation rates.

Q: Explain why some companies can influence many of their ratios simply by choosing their fiscal…

A: Solution Concept Financial ratios are the tools and technique used to measure the performance of the…

Q: Which of the following is NOT a correct explanation for turnover ratios and periods calculated based…

A: Receivable turnover, Inventory Turnover and Payables turnover are three important turnover ratios…

Q: Accounts payable turnover for Blue Industries increased from 10 to 12 during 2018. Whichof the…

A: Accounts payable turnover refers to the measure of the company’s liquidity and is used by the…

Q: Which of the following would not be considered an analytical procedure?

A: The correct answer is: (A) Projecting an error rate by comparing the results of a statistical sample…

Q: Prior to the end of the fiscal year a company decides to increase its sales by loosening its credit…

A: Accounts receivable- It includes those persons to whom entity sold goods on credit basis. For…

Q: A.Establish the Total Sales and Average Sales at an appropriate area in the spreadsheet. B.In an…

A:

Q: 11. You are using a waterfall chart to measure the change in Annual Recurring Revenue (ARR) from…

A: Waterfall chart visually represents the change in a metric (like ARR) over time.It starts with a…

Q: In 2013, Coca-Cola had a receivables turnover ratio of9.3. Which of the following actions could…

A: Receivables turnover ratio: It refers to a measure of accounting that is used to determine the…

Q: Suppose that a company has experienced two years of declining ROI. Give an example to show how data…

A: Balanced Scorecard is a one of the performance management tools that provides a comprehensive view…

Q: Problem 8. Persian Corporation is planning to introduce changes in its collection procedures. The…

A: 1. Option C . 900000 Explanation : Total  Budgeted Sales is P32,400,000 Average Accounts Receivable…

Q: Another metric of operational efficiency that your book also talks about is Days' Sales in…

A: The days' sales in accounts receivable is a metric that tells you the number of days it took on…

Q: An auditor noted that client sales increased 10 percent for the year. At the same time, Cost of…

A:

Q: a. Prepare a comparative income statement with horizontal analysis, indicating the increase…

A:

Q: ABC's sales for this year were $32,250,000 and the Accounts Receivable Turnover Ratio was 15.5. Next…

A: Given, ABC's sales for this year were $32,250,000  &  Accounts Receivable Turnover Ratio was…

Q: Which of the following problems can be most ea client's year-end sales cutoff?

A: Sales revenue represents the revenue of the company by selling the products produced by the company.…

Q: In the audit of the Worldwide Wholesale Company, you didextensive ratio and trend analysis. No…

A: Financial statements are the written records that show the financial performance of the business…

Q: Wilco Inc. is seeking new ways to expand sales. Mike Norvell, Executive Vice President of Sales,…

A: In the pursuit of business growth and increased revenue, companies often explore various strategies…

Q: If the gross profit of a business is lower than it was in the previous year, which one of the…

A: The profit a business makes after subtracting the expenses related to manufacturing, marketing, and…

Q: Imagine that you are the financial analyst for XYZ Company. The organization is trying to determine…

A: Accounts receivable is a type of asset that represents the amount of money owed to a business by its…

Q: r, yet the current ratio at the end of the year is lower that at the beginning of the year.

A: Current ratio In financial accounting, current ratio is an example of liquidity ratio and current…

Q: Suppose a firm has had the following historic sales figures. Year: 2009 2010 2011 2012 2013 Sales…

A:

Q: Gray Company’s year-end balance sheets follow. (1) Express the balance sheets in common-size…

A: The question is based on the concept of Financial Accounting.

Q: Which of the following generally indicates an improvement in a company’s financial position? The…

A: Financial position is defined as the current balances of the recorded the equities, liabilities, and…

Q: A condensed income statement for Stock Storage and a partially completed vertical analysis are…

A:

Q: 15 - If a company's EBIT margin is increasing while its net profit margin is decreasing, which of…

A: EBIT: It is the number of earnings before interest and tax of the organization. It includes all the…

Q: the best sentence reflect the decrease in trade receivables balance at the end of the year : إختر…

A: Current ratio = Current Assets / Current Liabilities Quick Ratio = [ Current Assets - Inventory ] /…

Q: 6- If a company's EBIT margin is increasing while its net profit margin is decreasing, which of the…

A: First we need to define both terms so that we can answer this question. Earning Before Interest and…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.