Loose Leaf for Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158762
Author: John J Wild
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 13, Problem 6QS
Summary Introduction
Concept Introduction:
Financial statements like income statement,
To indicate:if the change in ratio is favorable or not.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
For the return on equity (ROE) and return on assets (ROA) ratios, perform a DuPont decomposition andanalyze the components of the ratios in both years. Comment on which components of the ROE and ROAratios are driving the changes in the ratios you observe.
Here is my ROE for years 2021 (1728.1 / 11,951.5= 14.5%) and 2020 (1066.8 / 9759.1= 11.3%)
Here is my ROA for 2021 (1728.1 / 13,555) * 100 = 12.7488% and 2020 (1066.8 / 11,168.9) * 100 = 9.5515%
What is the difference between cumulative return and annualized return/CAGR). Provide an example
choose:
When a balance sheet amount is related to an income statement amount in comparing a ratio
a. The ratio losses its historical perspective because at the beginning of the year amount is combined with an end of the year amount.
b. The income statement amount should be converted to an average for the year.
c. Comparisons should be converted to market value
d. The balance sheet amount should be converted to an average for the year.
Chapter 13 Solutions
Loose Leaf for Financial Accounting: Information for Decisions
Ch. 13 - Explain the difference between financial reporting...Ch. 13 - Prob. 2DQCh. 13 - Prob. 3DQCh. 13 - Prob. 4DQCh. 13 - Prob. 5DQCh. 13 - Prob. 6DQCh. 13 - Prob. 7DQCh. 13 - Prob. 8DQCh. 13 - Prob. 9DQCh. 13 - Prob. 10DQ
Ch. 13 - Prob. 11DQCh. 13 - Prob. 12DQCh. 13 - Prob. 13DQCh. 13 - Prob. 14DQCh. 13 - Prob. 15DQCh. 13 - Prob. 16DQCh. 13 - Prob. 17DQCh. 13 - Prob. 1QSCh. 13 - Prob. 2QSCh. 13 - Prob. 3QSCh. 13 - Prob. 4QSCh. 13 - Prob. 5QSCh. 13 - Prob. 6QSCh. 13 - Prob. 7QSCh. 13 - Prob. 8QSCh. 13 - Which of the following gains or losses would...Ch. 13 - Prob. 1ECh. 13 - Prob. 2ECh. 13 - Prob. 3ECh. 13 - Prob. 4ECh. 13 - Prob. 5ECh. 13 - Prob. 6ECh. 13 - Prob. 7ECh. 13 - Prob. 10ECh. 13 - Prob. 12ECh. 13 - Prob. 13ECh. 13 - Prob. 14ECh. 13 - Prob. 15ECh. 13 - Prob. 16ECh. 13 - Prob. 1PSACh. 13 - Prob. 2PSACh. 13 - Prob. 3PSACh. 13 - Prob. 5PSACh. 13 - Prob. 6PSACh. 13 - Selected comparative financial statements of...Ch. 13 - Prob. 2PSBCh. 13 - Prob. 3PSBCh. 13 - Prob. 5PSBCh. 13 - Prob. 6PSBCh. 13 - Prob. 13SPCh. 13 - Prob. 2FSACh. 13 - Prob. 3FSACh. 13 - Prob. 1BTNCh. 13 - Prob. 5BTN
Knowledge Booster
Similar questions
- Which of the following theories can be assessed using data that exists at one specific point in time? A. purchasing power parity (PPP) B. international Fisher effect (IFE). C. A and B D. interest rate parity (IRP).arrow_forwardWho uses the original base period for the CPI index?Give an example?arrow_forwardWhen performing a horizontal analysis on an income statement, the percentage change inany individual item is calculated by dividing the dollar amount of the change from the baseperiod to the current period bya. the base period amount.b. the current period amount.c. the amount estimated for the future period.d. the average of the base and the current period amounts.arrow_forward
- In horizontal analysis, if an item has a negative amount in the base year, and a positive amount in the following year, no percentage change for that item can be computed. O True O Falsearrow_forwardCompare your printout from requirement 2 with your printout from requirement 4. From these two sets of ratios, what conclusions can be drawn concerning changes from 2012 and 2013?arrow_forwardWhich of the following condition may indicate that OMR has depreciated to EUR? a. Spot rate of EUR/OMR is equal to future rate of OMR/EUR b. Spot rate of EUR/OMR is less than future rate of EUR/OMR c. None d. Future rate of EUR/OMR is equal to spot rate of OMR/EUR e. Future rate of OMR/EUR is less than Spot rate of OMR/EUR no need to explain ..only give answerarrow_forward
- Match the measures of worth in the first column with one (or more) of the analysis approaches that is (are) appropriate for that measure.arrow_forwardIf Karp had used FIFO instead of LIFO, which of the following ratios computed as of31 December 2009 would most likely have been lower?A. cash ratioB. current ratioC. gross profit marginarrow_forwardA company’s comparative statements are given below. Please conduct the following analyses: a. Horizontal analysis (trend analysis) on the income statement b. Vertical analysis (common size financial statement analysis) on the income statement Note: When the dollar change is positive, it indicates that the value increased and therefore the % change should be positive. Therefore, when calculating % change involving a negative baseline value, use the absolute value of the baseline number in the denominator: % change = (new value - original baseline value)/|baseline value|. Otherwise the % change will be inconsistent with the real change. For example:Let's say item A changed from -10 to +10. Item A increased by 20 and thus should give rise to a positive % change. However, % change based on formula using the original value of -10 is -200% = [10-(-10)]/(-10).Let’s look at another example. Assume item B changed from -10…arrow_forward
- When using annual worth to evaluate the attractiveness of a single alternative, what value is the calculated AW compared to? a. PW b. FW c. 0.0d. MARR.arrow_forwardCompose a financial analysis based on your evaluation of the ratios. Comparison between 2020E ratios and industry averages - (c) Asset utilization ratios; (1) Are the 2020E ratios above, below, or equal to the industryaverages? 2) Is this a good thing or a bad thing for the company? and (3) What can be done to improve the weak ratios or to maintainthe strong ones? (d) Profitability ratios (1) Are the 2020E ratios above, below, or equal to the industryaverages? ( 2) Is this a good thing or a bad thing for the company? and (3) What can be done to improve the weak ratios or to maintainthe strong ones? (e) Market performance ratios. (1) Are the 2020E ratios above, below, or equal to the industryaverages? ( 2) Is this a good thing or a bad thing for the company? and (3) What can be done to improve the weak ratios or to maintainthe strong ones?arrow_forwardDefine each of the following terms: h. Replacement chain; economic life; capital rationing; equivalent annualannuity (EAA)arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Excel Applications for Accounting PrinciplesAccountingISBN:9781111581565Author:Gaylord N. SmithPublisher:Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Cengage Learning