What does the relative times interest earned between all three companies indicate? What does the realtive fixed charge coverage for each company indicate?

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: Question: How to find contribution margin ratio Question: How to calculate accounts receivable…

A: 1. Contribution Margin Ratio represents the percentage of sales remaining after we consider all…

Q: Profitability ratios Profit margin Return on assets Return on equity Market value ratios -…

A: Current Ratio / Quick Ratio / Operating Cash Flow Ratio Current Ratio - Current Asset / Current…

Q: What does it mean when there are claims on the economic resources

A: Economic resource refers to the factors that help in producing goods and services. The economic…

Q: How do companies account for long-term contracts that qualify for revenue recognition over time?

A: The companies use the following two methods to record the long term contract when it turns out to be…

Q: Why What kind of stream of income does a debt security pay for the duration of the security? A fixed…

A: The Answer

Q: How should the financial statement user explain the reference to revenue growth?

A: When explaining revenue growth in a financial statement, the user should consider the following…

Q: What are lines of credit? From the viewpoint of a short-term creditor, why do lines of credit…

A: Financial statements: Financial statements are condensed summary of transactions communicated in the…

Q: U2 Ltd is considering whether to offer trade credit to A1 Ltd. The ratio from A1's accounts that…

A: The financial ratio is one of the important tools for analyzing financial statements. The financial…

Q: what is the meaning of debt-to-asset ratio?

A: Debt is the amount of liability which arises from past or present event for which a business is…

Q: What is the usefulness of using Ratio analysis in financial reporting? What is industry average? How…

A: Ratio Analysis: Ratio analysis is a quantitative means of obtaining insight into a business's…

Q: Which of the following is business income for NOL purposes?    Interest earned on savings account.…

A: If your deductions for the year are more than your income for the year, you may have a net operating…

Q: Increases to owner's equity may be from what?

A: Owners' Equity: This is the amount the investors have invested in business to get the ownership. The…

Q: Describe how operating and capital leases affects all three of the financial statements. How might…

A: Operating Lease In a simple word operating lease is defined as there are two parties involved in the…