Financial Accounting: Information for Decisions
Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158809
Author: Wild, John
Publisher: MCGRAW-HILL HIGHER EDUCATION
Question
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Chapter 13, Problem 2FSA
Summary Introduction

Concept Introduction:

Financial ratios: Ratio helps investor and the company to analyze the growth of the business. It helps to take decisions to management of business and helps investor in taking the decision of investment. Financial ratio also helps to compare the company with previous data and from other companies.

Requirement-1:

To Calculate:

Common size percents of above data.

Summary Introduction

Concept Introduction:

Financial ratios: Ratio helps investor and the company to analyze the growth of the business. It helps to take decisions to management of business and helps investor in taking the decision of investment. Financial ratio also helps to compare the company with previous data and from other companies.

Requirement-2:

To Comment:

Dividend payment reduces or increases the percentage of retained earnings on total assets.

Summary Introduction

Concept Introduction:

Financial ratios: Ratio helps investor and the company to analyze the growth of the business. It helps to take decisions to management of business and helps investor in taking the decision of investment. Financial ratio also helps to compare the company with previous data and from other companies.

Requirement-3:

To Comment:

Which company has higher gross margin ratio.

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