In composite analysis, the items in the Profit and Loss alc are expressed as a percentage of * Balance Sheet total O Total sales O Net Profit O Gross Profit
Q: Which of the following is NOT one of the ratios in Profitability group? Select one: a. Quick ratio…
A: Profitability ratios are those ratios which helps in measuring and determining the profitability of…
Q: r to create a common size statement for the Statement of Profit and Loss, all items must: a. Divided…
A: The correct answer is e. Divided by sales
Q: What is the order of the subtotals that appear on a multi-step income statement? Gross Profit,…
A: Multi step income statement: A multiple step income statement refers to the income statement that…
Q: Why is the income statement called the "profit and loss statement"?
A: Income Statement is called the profit and loss statement because it records all the incomes and…
Q: Compute for the consolidated net income.
A: Calculation of Consolidated Net Income to be shown in Consolidated Financial Statements of Quail…
Q: Compute for the consolidated net income
A: The consolidated net income is the combined income of both the parent company and its subsidiaries.…
Q: This ratio is used to reflect t profit earning performance firm's assets return on assets net profit…
A: Solution: Profit earnings performance of the company's assets means that how much of the company's…
Q: All of the following are the factors affecting the gross profit except O cash flow O volume O…
A: Gross Profit = Sales revenue - Cost of goods sold
Q: Which of the following financial ratios is not a measure of operating profitablitlity? Return on…
A: Formula: Return on Assets = Net income / Total Assets.
Q: Using the da
A: Common size income statement analyse every item of income statement as a percentage of sales. This…
Q: The calculation of earnings and profits is used primarily to determine, which of the following: O a.…
A: Every company will try to increase the profitability from its operations. The company will earn…
Q: The elements that are directly related to the measurement of profit are assets, liabilities, and…
A: The profit is recognized by an entity at the instance where the assets are increasing, or the…
Q: Options I have for denominator are - average accounts receivable, net average total assets cost…
A: The profit margin ratio can be calculated by dividing profit by net sales. It indicates the…
Q: calculated the current ratio, acid test ratio, account receivable turnover ratio, net profit margin…
A: Ratio analysis is a method to know the liquidity, profitability and operational efficiency of the…
Q: Profitability ratios include all of the following EXCEPT a.current ratio. b.asset turnover. c.return…
A: The profitability ratios measures the ability of the company to generate income with respect to…
Q: Comparative Profit and Loss Statement:
A: Joint costs are costs incurred up to the point of separation of Products. In this case, joint costs…
Q: Which of the following is an item found on a company's balance sheet? a. Net Income b. Owners'…
A: SOLUTION- OWNERS EQUITY- IT IS THE AMOUNT THAT BELONGS TO THE OWNERS OF THE BUSINESS AS SHOWN ON THE…
Q: Briefly explain the concepts ‘Profit and loss, Other Comprehensive Income and Total Comprehensive…
A: Profit and loss: The profit and loss is a statement which is being prepared by the entities to know…
Q: A multistep income statement divides revenues and expenses further to show. Select one: a. subtotals…
A: An income statement that categorizes incomes and expenses into operational and non-operating heads…
Q: Define each of the following terms: d. Forecasted financial statement approach using percentage of…
A: Forecasted financial statement approach using percent of sales: This process begins with future…
Q: The format recommended by the International Financial Reporting Standards for the preparation of a…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: indicate whether the statement describes a multiple-step income statement or asingle-step income…
A: Multiple step income statement: Multiple step Income statement, as the name suggests, is an income…
Q: income statement, statement of retained earning and balance sheet of the following
A: Financial statements are the ones that are prepared to record all the financial information in a…
Q: how is profit or loss calculated on an income statement?
A: Profit and loss is calculated as below-
Q: In horizontal analysis, each item is expressed as a percentage of the: Choose net income amount nt…
A: "Since you have posted multiple questions, we will solve the first question for you. To get the…
Q: Net net profit is computed in the
A: Net profit in computed in the Income statement or profit and loss statement . The format of the…
Q: RATIO CALCULATIONS Assune the following relationships for hhe Brauer Cop Sales total assets Retum on…
A: Ratio analysis is the study of financial statements to determine the financial health and the…
Q: indicate whether the statement describes a multiple-step income statement or asingle-step income…
A: Net income: The bottom line of income statement which is the result of excess of earnings from…
Q: alculate the following from the additional information given G Gross profit H Net profit
A: We need to compute gross and net profit of the firm.
Q: Explain the difference between gross income, gross profit, operating income and comprehensive…
A: Gross Income means the amount of the total revenue from sales of goods or provision of services.…
Q: Express the following income statement information in common-size percents and assess whether this…
A: Income statement shows the net profit earned or loss incurred during the year.
Q: record the share in the profit
A: A partnership is a form of business in which two or more persons come together with a common…
Q: Which of the following is a solvency ratio? a. Times interest earned. b. Inventory turnover ratio.…
A: The correct option is (A) Times Interest Earned Explanation: This ratio is the measure of a…
Q: Calculate Gross profit ratio
A: Gross profit ratio = Gross profit/ Sales *100
Q: profitability ratios
A: Gross profit ratio = Gross profit * 100/Net sales Operating profit ratio = Operating income *…
Q: Which of the following statements are true? A) Common-size balance sheet shows relative value of…
A: Common size statement , also known as component percentage statement is a financial tool for…
Q: mpute the consolidated gain or loss on a lidated income statement for at the end 20
A: The main objective of the income statement is to show how much gain or loss an organization…
Q: Profitability ratios: 1. 2. 3. 4. 5. 6. Return on equity Return on assets Gross profit percentage…
A: Ratio analysis is a technique of analysis and interpretation of financial statements. It is the…
Q: 23. n a single period common sized statement, the base amount is net sales in the Statement of…
A: Solution:- Common sized statement is a statement where each item is shown as percentage of a common…
Q: In a DuPont analysis, what are the components of return on assets?a. Net Profit Margin Ratio and…
A: Formula of Return on assets in Du Pont analysis is as follows:Return on assets=Net profit…
Q: Which of the following is notan acceptable way of displaying the components of other comprehensive…
A:
Q: The main purpose of the statement of profit or loss is to determine O the amount of income and…
A: A profit and loss statement is a financial statement that is prepared so as to determine the…
Q: Interpret the results: • Return on equity • Return on assets • Gross profit margin • Operating…
A: The financial ratios are used as a measure of the financial health of the company.
Q: Comprehensive income is defined as plus other * .comprehensive income Gains And Losses Net Income…
A: Income means the amount earned by an entity after deducting the expenses.
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- which of the following comes first in the income statement O a. finance cost O b. gross profit O C. C. cost of sales O d. distribution costWhen using vertical analysis, we express income statement accounts as a percentage of a. Net income. b. Sales. c. Gross profit. d. Total assets.Using the information from 27A prepare the following ratios: gross profit margin profit margin return on assets earnings per share current ratio acid test ratio debt ratio Indicate what each is used for (ie: measuring efficiency, solvency etc)
- Question: What is the formula for calculating the net profit margin? a. Net Profit / Revenue b. Revenue / Net Profit c. Net Profit / Total Assets d. Total Assets / Net ProfitBased on the income statement given calculate and explain the :profitability ratioa. Gross profit ratio = gross profit/net salesb. Operating margin ratio =operating income/net salesc. Asset Turnover ratio = net sales / total assetsd. Return on equity ratio = net sales/ shareholders equity Leverage ratioa. interest coverage ratio =operating income / interest expensesThe income statement line gross profit will appear on which income statement format? Select one: a. Receipt and payment account b. Multiple step income statement c. Single step income statement d. Income and expenditure account
- Compute the following ratio analysis: Return on Equity Return on Assets Gross Profit Margin Write your interpretation after the computation.Based on the income statement given calculate and explain the :profitability ratioa. Gross profit ratio = gross profit/net salesb. Operating margin ratio =operating income/net salesc. Asset Turnover ratio = net sales / total assetsd. Return on equity ratio = net sales/ shareholders equity Leverage ratioa. interest coverage ratio =operating income / interest expensesb. Debt service ratio=operating income/debt serviceFinancial Statement Analysis Compute for Profitability Ratio with Substantial Analysis: a. Gross Profit Margin b. Profit Margin c. Return on Total Assets d. Return on Equity
- explain the impact on financial statement using FIFO, weighted avverage and LIFO. When would the three methods give similar profit figures? when would they give indentical profit figure?Which of the following is a measure of profitability?a. Quick (acid-test) ratiob. Net salesc. Inventory turnoverd. Return on assets (ROA)A vertical common-size income sheet expresses each category of the income statement as a percentage of A. assets. B. equity. C. revenue. D. operating income.