(a) Introduction: Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory. To state: An increase in the gross profit percentage will have a favorable or unfavorable impact.

Question

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Answer 1

Question

Chapter 13, Problem 10Q

To determine

(a)

Introduction:

Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory.

To state:

An increase in the gross profit percentage will have a favorable or unfavorable impact.

To determine

(b)

Introduction:

Inventory turnover ratio measures the number of times a company has sold its inventory.

To state:

Decrease in the inventory turnover ratio will have a favorable or unfavorable impact.

To determine

(c)

Introduction:

Earnings per share (EPS) is profit of the company which is divided by common stock per share. Earnings per share acts as an indicator of a company's profitability.

To state:

Increase in earnings per share will have a favorable or unfavorable impact.

To determine

(d)

Introduction:

Days to collect are the average number of days in which a company collects its accounts receivables in a year.

To state:

Decrease in days to collect will have a favorable or unfavorable impact.

To determine

(e)

Introduction:

Net profit margin ratio is calculated by dividing net income by the net sales. It helps in calculating the net income as a percentage of revenue.

To state:

Increase in net profit margin will have a favorable or unfavorable impact.

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Answer 2

Question

Chapter 13, Problem 10Q

To determine

(a)

Introduction:

Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory.

To state:

An increase in the gross profit percentage will have a favorable or unfavorable impact.

To determine

(b)

Introduction:

Inventory turnover ratio measures the number of times a company has sold its inventory.

To state:

Decrease in the inventory turnover ratio will have a favorable or unfavorable impact.

To determine

(c)

Introduction:

Earnings per share (EPS) is profit of the company which is divided by common stock per share. Earnings per share acts as an indicator of a company's profitability.

To state:

Increase in earnings per share will have a favorable or unfavorable impact.

To determine

(d)

Introduction:

Days to collect are the average number of days in which a company collects its accounts receivables in a year.

To state:

Decrease in days to collect will have a favorable or unfavorable impact.

To determine

(e)

Introduction:

Net profit margin ratio is calculated by dividing net income by the net sales. It helps in calculating the net income as a percentage of revenue.

To state:

Increase in net profit margin will have a favorable or unfavorable impact.

Expert Solution & Answer

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Answer 3

Question

Chapter 13, Problem 10Q

To determine

(a)

Introduction:

Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory.

To state:

An increase in the gross profit percentage will have a favorable or unfavorable impact.

To determine

(b)

Introduction:

Inventory turnover ratio measures the number of times a company has sold its inventory.

To state:

Decrease in the inventory turnover ratio will have a favorable or unfavorable impact.

To determine

(c)

Introduction:

Earnings per share (EPS) is profit of the company which is divided by common stock per share. Earnings per share acts as an indicator of a company's profitability.

To state:

Increase in earnings per share will have a favorable or unfavorable impact.

To determine

(d)

Introduction:

Days to collect are the average number of days in which a company collects its accounts receivables in a year.

To state:

Decrease in days to collect will have a favorable or unfavorable impact.

To determine

(e)

Introduction:

Net profit margin ratio is calculated by dividing net income by the net sales. It helps in calculating the net income as a percentage of revenue.

To state:

Increase in net profit margin will have a favorable or unfavorable impact.

Expert Solution & Answer

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Answer 4

Question

Chapter 13, Problem 10Q

To determine

(a)

Introduction:

Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory.

To state:

An increase in the gross profit percentage will have a favorable or unfavorable impact.

To determine

(b)

Introduction:

Inventory turnover ratio measures the number of times a company has sold its inventory.

To state:

Decrease in the inventory turnover ratio will have a favorable or unfavorable impact.

To determine

(c)

Introduction:

Earnings per share (EPS) is profit of the company which is divided by common stock per share. Earnings per share acts as an indicator of a company's profitability.

To state:

Increase in earnings per share will have a favorable or unfavorable impact.

To determine

(d)

Introduction:

Days to collect are the average number of days in which a company collects its accounts receivables in a year.

To state:

Decrease in days to collect will have a favorable or unfavorable impact.

To determine

(e)

Introduction:

Net profit margin ratio is calculated by dividing net income by the net sales. It helps in calculating the net income as a percentage of revenue.

To state:

Increase in net profit margin will have a favorable or unfavorable impact.

Expert Solution & Answer

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See solution

Answer 5

Chapter 13, Problem 10Q

To determine

(a)

Introduction:

Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory.

To state:

An increase in the gross profit percentage will have a favorable or unfavorable impact.

To determine

(b)

Introduction:

Inventory turnover ratio measures the number of times a company has sold its inventory.

To state:

Decrease in the inventory turnover ratio will have a favorable or unfavorable impact.

To determine

(c)

Introduction:

Earnings per share (EPS) is profit of the company which is divided by common stock per share. Earnings per share acts as an indicator of a company's profitability.

To state:

Increase in earnings per share will have a favorable or unfavorable impact.

To determine

(d)

Introduction:

Days to collect are the average number of days in which a company collects its accounts receivables in a year.

To state:

Decrease in days to collect will have a favorable or unfavorable impact.

To determine

(e)

Introduction:

Net profit margin ratio is calculated by dividing net income by the net sales. It helps in calculating the net income as a percentage of revenue.

To state:

Increase in net profit margin will have a favorable or unfavorable impact.

Answer 6

Chapter 13, Problem 10Q

To determine

(a)

Introduction:

Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory.

To state:

An increase in the gross profit percentage will have a favorable or unfavorable impact.

Answer 7

Chapter 13, Problem 10Q

To determine

(a)

Introduction:

Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory.

To state:

An increase in the gross profit percentage will have a favorable or unfavorable impact.

Answer 8

To determine

(b)

Introduction:

Inventory turnover ratio measures the number of times a company has sold its inventory.

To state:

Decrease in the inventory turnover ratio will have a favorable or unfavorable impact.

Answer 9

To determine

(b)

Introduction:

Inventory turnover ratio measures the number of times a company has sold its inventory.

To state:

Decrease in the inventory turnover ratio will have a favorable or unfavorable impact.

Answer 10

To determine

(c)

Introduction:

Earnings per share (EPS) is profit of the company which is divided by common stock per share. Earnings per share acts as an indicator of a company's profitability.

To state:

Increase in earnings per share will have a favorable or unfavorable impact.

Answer 11

To determine

(c)

Introduction:

Earnings per share (EPS) is profit of the company which is divided by common stock per share. Earnings per share acts as an indicator of a company's profitability.

To state:

Increase in earnings per share will have a favorable or unfavorable impact.

Answer 12

To determine

(d)

Introduction:

Days to collect are the average number of days in which a company collects its accounts receivables in a year.

To state:

Decrease in days to collect will have a favorable or unfavorable impact.

Answer 13

To determine

(d)

Introduction:

Days to collect are the average number of days in which a company collects its accounts receivables in a year.

To state:

Decrease in days to collect will have a favorable or unfavorable impact.

Answer 14

To determine

(e)

Introduction:

Net profit margin ratio is calculated by dividing net income by the net sales. It helps in calculating the net income as a percentage of revenue.

To state:

Increase in net profit margin will have a favorable or unfavorable impact.

Answer 15

To determine

(e)

Introduction:

Net profit margin ratio is calculated by dividing net income by the net sales. It helps in calculating the net income as a percentage of revenue.

To state:

Increase in net profit margin will have a favorable or unfavorable impact.

Answer 16

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Answer 17

Expert Solution & Answer

Answer 18

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Answer 19

Ch. 13 - Prob. 1Q Ch. 13 - Prob. 2Q Ch. 13 - What is ratio analysis? Why is it useful? Ch. 13 - What benchmarks are commonly used for interpreting...Ch. 13 - Prob. 5Q Ch. 13 - Why are some analyses called horizontal and others...Ch. 13 - Slow Cellar’s current ratio increased from 1.2 to...Ch. 13 - From last year to this year. Colossal Company’s...Ch. 13 - From last year to this year, Berry Barn reported...Ch. 13 - Prob. 10Q

(a) Introduction: Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory. To state: An increase in the gross profit percentage will have a favorable or unfavorable impact.

Solution Summary: The author explains gross profit percentage, inventory turnover ratio, earnings per share, and net profit margin.

(a)

Introduction:

Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory.

To state:

An increase in the gross profit percentage will have a favorable or unfavorable impact.

(b)

Introduction:

Inventory turnover ratio measures the number of times a company has sold its inventory.

To state:

Decrease in the inventory turnover ratio will have a favorable or unfavorable impact.

(c)

Introduction:

Earnings per share (EPS) is profit of the company which is divided by common stock per share. Earnings per share acts as an indicator of a company's profitability.

To state:

Increase in earnings per share will have a favorable or unfavorable impact.

(d)

Introduction:

Days to collect are the average number of days in which a company collects its accounts receivables in a year.

To state:

Decrease in days to collect will have a favorable or unfavorable impact.

(e)

Introduction:

Net profit margin ratio is calculated by dividing net income by the net sales. It helps in calculating the net income as a percentage of revenue.

To state:

Increase in net profit margin will have a favorable or unfavorable impact.

Want to see the full answer?

Chapter 13 Solutions

(a) Introduction: Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory. To state: An increase in the gross profit percentage will have a favorable or unfavorable impact.

Solution Summary: The author explains gross profit percentage, inventory turnover ratio, earnings per share, and net profit margin.

(a) Introduction: Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory. To state: An increase in the gross profit percentage will have a favorable or unfavorable impact.

(b) Introduction: Inventory turnover ratio measures the number of times a company has sold its inventory. To state: Decrease in the inventory turnover ratio will have a favorable or unfavorable impact.

(c) Introduction: Earnings per share (EPS) is profit of the company which is divided by common stock per share. Earnings per share acts as an indicator of a company's profitability. To state: Increase in earnings per share will have a favorable or unfavorable impact.

(d) Introduction: Days to collect are the average number of days in which a company collects its accounts receivables in a year. To state: Decrease in days to collect will have a favorable or unfavorable impact.

(e) Introduction: Net profit margin ratio is calculated by dividing net income by the net sales. It helps in calculating the net income as a percentage of revenue. To state: Increase in net profit margin will have a favorable or unfavorable impact.

Want to see the full answer?

Chapter 13 Solutions

(a)

Introduction:

Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory.

To state:

An increase in the gross profit percentage will have a favorable or unfavorable impact.

(b)

Introduction:

Inventory turnover ratio measures the number of times a company has sold its inventory.

To state:

Decrease in the inventory turnover ratio will have a favorable or unfavorable impact.

(c)

Introduction:

Earnings per share (EPS) is profit of the company which is divided by common stock per share. Earnings per share acts as an indicator of a company's profitability.

To state:

Increase in earnings per share will have a favorable or unfavorable impact.

(d)

Introduction:

Days to collect are the average number of days in which a company collects its accounts receivables in a year.

To state:

Decrease in days to collect will have a favorable or unfavorable impact.

(e)

Introduction:

Net profit margin ratio is calculated by dividing net income by the net sales. It helps in calculating the net income as a percentage of revenue.

To state:

Increase in net profit margin will have a favorable or unfavorable impact.