Which of the following statements about earnings per share (EPS) iscorrect?Multiple ChoiceEPS is an indicator of how well a company willperform in the future.Net income in dollar amount is a better measureto use in comparing different companies.EPS can be used to compare companies ofdifferent sizes.EPS is expected to remain constant over aperiod of time.

Earnings per share (EPS): The amount of net income available to each shareholder per common share…

Answered: Which of the following statements about…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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choose true or false
What is the comparison (analysis) of the Returned on Invested Capital (ROIC) of Industry Average Ratio and the Company A Ratio? THE ROIC ratios has decreased and increased. Why? Industry Average ROIC 2015: 4.30% 2016: 4.90% 2017: 3.00% 2018: 2.58% 2019: 4.02% Company A Total ROIC 2015: 3.77% 2016: 1.46% 2017: 2.90% 2018: 2.94% 2019: 2.24%
5. Profitability ratios Profitability ratios help in the analysis of the combined impact of liquidity ratios, asset management ratios, and debt management ratios on the operating performance of a firm. Your boss has asked you to calculate the profitability ratios of Petroxy Oil Co. and make comments on its second-year performance as compared with its first-year performance. The following shows Petroxy Oil Co.'s income statement for the last two years. The company had assets of $9,400 million in the first year and $15,037 million in the second year. Common equity was equal to $5,000 million in the first year, and the company distributed 100% of its earnings out as dividends during the first and the second years. In addition, the firm did not issue new stock during either year. Petroxy Oil Co. Income Statement For the Year Ending on December 31 (Millions of dollars) Year 2 Year 1 5,080 4,000 1,855 1,723 254 160 Net Sales Operating costs except depreciation and amortization Depreciation…
A company has been in business for a number of years. Merkel has the following financial ratios: return on equity (ROE) = 85%Net profit margin= 19%total asset turnover= 4.9earnings quality= 0.5debt-to-equity ratio= 4.2 question: Prepare an analysis of this company. Discuss and interpret the financial ratios above. what at the strengths AND weaknesses of the company? are there any troubling signs?
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…
You are asked to briefly answer the following questions:Profitability ratios are a set of ratios that indicate how profits relate to sales and the size of a company's capital, and this category includes various ratios such as: Gross Profit Margin Ratio, Net Profit Margin Ratio, Return on Assets Ratio and Return on Equity Ratio of funds. One of the top executives at the company where you work is asking for your help in understanding the following:1. How the above efficiency indicators are calculated.2. The company decided to pay cash to suppliers to achieve better purchase prices. What is the effect of this fact on the value of the aforementioned efficiency indicators?3. Could (beyond the above fact) be affected in any way positively the figures in question for the company where you work?
Time le The profitability and financial position of a firm can be judged to be improving, or deteriorating related to competitors in the industry by: OA. Measures of the past performance of the business B. Measures of both the past and current performances of the business O C. Comparing with industry average D. Rate of thumb measures Next p e
Which 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
7,8,9,10
Compute the following profitability ratios of the company for the most recent two years, show all values in the computations: 1.Asset Turnover 2.Profit margin ratio(Net Income/Net Sales) 3.Return on total assets (Net Income/Average Total Assets) 4.Return on stockholders’ equity 5.Basic Earnings per share (EPS) Based on the results above, what conclusions can you make about the company’s overall profitability and efficient use of assets?
What is the comparison of Earnings Per Share (EPS) between Alex Company and the industry Average? Which one is better in terms of performance? Alex company 2015: $5.70 2016: $3.30 2017: $6.21 2018: $6.20 2019: $4.91 Industry Average 2015: $39.57 2016: $38.90 2017: $36.70 2018: $28.20 2019: $13.90
A firm's current ratio is above the previous year; however, the firm's quick ratio is below the previous year. What do these ratios suggest about the firm? Has relatively more total current assets and even more inventory than the previous year Is very efficient at managing inventories in the current year Has liquidity that is superior to the average firm in the industry None of these is correct

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