Total asset turnover indicates the company's:
Q: increasing the company's debts on Return on Assets (ROA) and Return on Equity (ROE
A: Debt is the liability incurred by the company by borrowing for its financial needs.
Q: Describe the Ratios that show the relationship of a firm's cash and other assets to its current…
A: Definition: Ratio analysis: It is the financial analysis tool for measuring the profitability,…
Q: Why is depreciation provided on non-current assets? a. so that the business entity concept is…
A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…
Q: What are causes of depreciation on non-current assets? (i) change in its cost of repair (ii) change…
A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…
Q: With the help of accounting ratios, Critically analyse the Solvency performance of the Apple…
A: Solvency can be measured using debt equity ratio. Debt equity ratio can be found out using the…
Q: debt service ratio measures? A. Profitability of the business B. The impact of debt funding to…
A: Debt service ratio means ratio of operating income available for debt service payments like…
Q: The relationship between current assets and current liabilities is a. useful in determining…
A: The answer is as fallows
Q: Liquidity is simply: a. another term for current liabilities O b. another term for cash O c. a…
A: Definition: Liquidity means how quickly you can get your hands on your cash. In simpler terms,…
Q: Ratios that measure how efficiently a firm manages its assets and operations to generate net income…
A: concept. Turnover ratios are useful for evaluating efficiency with which a business utilizes its…
Q: Cost of capital refers to: a. The cost of borrowing money from financial institutions b. The cost of…
A: Cost of capital refers to the cost of financing a company's operations.
Q: Identify which ratio category is best described in each statement. • Ratios that help determine…
A: Ratio analysis is a financial analysis technique that involves calculating and interpreting various…
Q: What do the return on assets measure? The liquidity of a firm's current assets Management's…
A: >Ratio analysis is the study of financial statement data based on certain ratios. >ratio…
Q: Analyze and explain the vertical analysis given below.Make an interpretation of the vertical…
A: The comparative income statement is described as that statement in which the operating results for a…
Q: There was a bit of concern about one of Big Rock's newer entities - Big Rock Paving Company.…
A: Ratio analysis: Ratio analysis helps in understanding and determining the performance of a business.…
Q: by The financial performance of an entity is calculated Select one: A. a decrease in expenditure. B.…
A: The financial performance of the company is the overall standing of the company in the categories of…
Q: The primary objective of financial reporting is to provide informationa. useful for making…
A:
Q: The primary objective of financial management Can be in the form of a. Maximise the entity’s asset…
A: Financial management means management of funds or finance in the business. It is about making future…
Q: Asset utilization ratios A. relate assets to sales. B. measure how much cash is available for…
A: Asset utilization ratio is financial ratio computed to determine the efficiency of total assets.
Q: Contributions to capital from company's owners are
A: Contributions to capital from a company's owners represent the equity or ownership interest that…
Q: In cash flow estimation, depreciation shelters company's income from A. expansion B. salvages C.…
A: The reduction in income tax liability due to depreciation means that the company has more cash…
Q: a. Return on equity b. Total assets turnover c. Return on assets
A: Lets understand the basics. Return on equity ratio shows how much net income is earned using the…
Q: PFRS 9 can an entity classify financial assets that meet the amortized cost criteria as at FVTPL?
A: As per PFRS 9, an entity may classify financial assets initially according to the measurement at…
Q: Which of the following statements is correct? Statement 1. Asset utilization ratios describe how…
A: Assets can be defined as the objects which are held by a firm for the purpose of generating future…
Q: 1.How can exit value accounting be used to assess the financial risk of a balance sheet.…
A: Answer:- Balance sheet meaning:- A balance sheet can be defined as the financial statement that…
Q: 1. The area of finance address the issue of the efficiency of financial market in the allocation of…
A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…
Q: Assuming total asset turnover is revenue divided by average total assets, impairment write downs of…
A: Total asset turnover ratio is calculated as Sales/Average assets and the impairment of a company's…
Q: Networking capital refers to the A) firms investment in total assets B) firms' investment in…
A: There are various heads of balance sheet including current assets, total assets etc
Q: Kindly make a thorough analysis or explanation of this ho
A: Balance sheet shows the financial position of the company. It includes the assets, liabilities, and…
Q: One of the purposes of the statement of cash flows is to ________. A to calculate inventory…
A: Statement of Cash flow : It is one of the financial statements of the business and is prepared for…
Q: Real assets are assets used to produce goods and services always the same as financial assets always…
A: Real assets are tangible / physical assets used in production of goods or services. These assets are…
Q: irm's operating cash flow (OCF) is defined as
A: Cash generated by the operating activities of an organization is called Operating Cash Flow. An…
Q: Profitability ratios: measure the amount of debt the firm uses. measure how effectively a firm is…
A: Profitability ratio shows how well a company utilizes its assets to produce profit and value for…
Q: 7. How is the valuation of current assets affected if th OValuation is based on historical cost.…
A: Current assets are the assets that provide the financial benefit over a year. If the assets is held…
Q: Terminology Matching Asset Turnover Ratio Current Ratio Days in Inventory Ratio Debt to Assets Ratio…
A: Accounting ratios cover a wide array of ratios that are used by accountants and act as different…
Q: The following information is available balances of accounts of Yong Pal Company: Yong Pal, Capital,…
A: Debit balance in the Income Summary account is the net loss.
Q: Return on Assets, or ROA, can be expressed as the product of two ratios. Which two? Select one: a.…
A: Return on Assets (ROA) is an important financial ratio that indicates a company's efficiency in…
Q: 1. Total free assets 2. Net free assets 3. Unsecured liabilities with priority 4. Unsecured…
A: Liquidation refers to winding up of a business. A statement of net affairs is prepared which shows…
Q: Answer the following question a. Return on equity b. Total assets turnover c. Return on assets d.…
A: Return on Equity: It represents a measure of profitability for the firm expressed in percentage…
Q: Why is it important for financial analyst to delve into current assets management cash flow and…
A: Proper current assets management, cash flow and profits are important for companies to operate…
Q: Harkey Corporation's balance sheet and income statement appear below: Comparative Balance Sheet…
A: According to the question given, we need to determine the net cash used in operating activities.Cash…
Q: The return on assets ratio measures: the efficient use of assets by management the liquidity of the…
A: Ratios Analysis The study or analysis of the line items included in the company's financial accounts…
Q: atcments is not an objective of financial reporting? hat is useful in investment and credit…
A: THE OBJECTIVE OF FINANCIAL REPORTING IS TO TRACK ANALYSE AND REPORT YOUR BUSINESS INCOME . THE…
Q: The return on total assets measures A. profitability by combining the effects of the profit margin…
A: Profitability ratios are those ratio which shows the ratio of margins i.e. gross margin, net margin,…
Q: Which of the following ratios would a lender find most useful in monitoring a porrower's ability to…
A: Analysis of various options: 1) P/E ratio - It is used for measuring the price of the stock of a…
Q: None of the above Indicate by letter how each of the following should be classified: Advertising…
A: 1. Advertising expense - General and Administrative expense 2. Amortization of a patent held as an…
Q: With the help of accounting ratios, Critically analyse the Profitability performance of the Apple…
A:
Total asset turnover indicates the company's:
A. Profitability.
B. Ability to use its assets to generate sales.
C. Liquidity.
D. Debt position
Step by step
Solved in 2 steps
- Why might a company’s operating profit in a particular period be different from its cash flow from operationsNet working capital increases when: A. a credit customer pays for his or her purchase B. inventory is sold at cost. C. fixed assets are purchased for cash D. inventory is purchased on creditHow is the income based valuation model important in the business? Discuss sub topics such as economic value added, capitalization of earnings method and discounted cash flow method
- Hirshberg Corporation's comparative balance sheet appears below: Comparative Balance Sheet Assets: Current assets: Cash and cash equivalents Accounts receivable Inventory Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment. Total assets Liabilities and stockholders' equity: Current liabilities: Accounts payable Accrued liabilities Income taxes payable Total current liabilities. Bonds payable Total liabilities Stockholders' equity: Common stock Retained earnings. Total stockholders' equity Total liabilities and stockholders' equity. The company's net cash provided by (used in) investing activities is: Multiple Choice O $41,000 $38,300 O $(9,000) O Ending Balance $(23,000) $ 63,000 36,700 79,300 179,000 362,000 208,000 154,000 $333,000 The company's net income for the year was $14,700 and its cash dividends were $7,100. It did not sell or retire any property, plant, and equipment during the year. $ 39,300 84, 100 67,300…The ability of a business to pay its debts as they come due and to earn a reasonable net income is a. solvency and equity b. solvency and profitability c. solvency and leverage d. solvency and liquidityWhile calculating operating profit which will be added to net profit a. Profit on Sale of Asset b. Increase in General Reserves c. Interest received d. Refund of Tax
- The comparative statements of financial position for Judy Inc. are presented below: JUDY INC. Comparative Statements of Financial Position Assets Cash. Accounts receivable. Inventory. Prepaid expenses. Investments.. Property, plant, and equipment.. Accumulated depreciation..... Total..... Accounts payable. Accrued expenses payable Bonds payable.. Common shares. Retained earnings. Total..... Sales Expenses Cost of goods sold. Operating expenses (excluding depreciation).. Depreciation expense Income tax expense. Net income..... Liabilities and Shareholders' Equity Interest expense Loss on sale of property, plant, and equipment.. Income before income tax.. 2022 $ 68,000 97,000 180,000 5,000 30,000 448,000 (100,000) $728.000 JUDY CORPORATION Statement of Income Year Ended December 31, 2022 $ 76,000 20,000 260,000 100,000 272,000 $728.000 5. Accrued expenses pertain to operating expenses. 6. The bonds were originally issued at face value. $580,000 180,000 30,000 18,000 8,000 2021 $ 36,000…assets that are purchased for use in operations but are not intended to be resold are called a. fixed assets b. income statement c. marketing costs d. proper cash flowWhich of the following should show a profit in order for a financial institution to give a the company a loan a) income statement b) rent expense c) accelerated depreciation d) accounts receivable a) income statement b) rent expense c) accelerated depreciation d) accounts receivable
- Critically analyse the Liquidity performance of the Apple company.Evaluate the financial analysis of the company's working capital and long term debt.6.On a statement of financial affairs, a company's liabilities should be valued at Select one: a.the present value of future cash flows. b.the amount expected to be paid if the company could honor its debts. c.net realizable value. d.the amount required for settlement. e.replacement cost.