(a)
Efficiency ratio means:
The efficiency ratio is normally used to break down how well an organization utilizes its assets and liabilities inside. An efficiency ratio can figure the turnover of receivables, the reimbursement of liabilities, the amount and use of value, and the general utilization of stock and apparatus.
To compute:
Compute the assets efficiency ratios for Austin Logo Inc. for 2019 and 2018.
(b)
Profitability ratios are a class of budgetary measurements that are utilized to survey a business' capacity to create income in respect to its income, working costs, accounting report resources, and shareholders' equity after some time, utilizing information from a particular point in time.
To discuss:
Compute the profitability ratio for twisted for 2019 and 2018 also determine that how much Twised’s Profitability ratio changed or not.
(c)
A proportion of an organization’s debt to its absolute financing. The debt the board proportion estimates the amount of an organization’s tasks originates from debt rather than different types of financing, for example, stock or individual investment funds
To calculate:
Calculate the debt management ratios for twisted for 2018 and 2019. Discuss wether creditor are as secure in 2019 as they were in 2018.
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Cornerstones of Financial Accounting
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