Excel Applications for Accounting Principles
4th Edition
ISBN: 9781111581565
Author: Gaylord N. Smith
Publisher: Cengage Learning
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Textbook Question
Chapter 15, Problem 3R
- a. What information does a comparison of the
current ratio and acid test ratio provide? - b. Is the company using leverage to its advantage? Explain.
- c. What other observations can be made comparing Global Technologyʼs ratios to the following industry norms:
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Which of the following does ratio analysis in an industry set-up help compare? (Note: More than one option(s) may
be correct.) ans1:A company's performance between different time period ans2:A company's performance to another
ans3:A company to industry standard ans4:None of the above
Give typing answer with explanation and conclusion
Financial analysis is more meaningful if the ratios can be compared to an appropriate benchmark such as
Select one:
a. Industry averages
b. Economic industry sector
c. Changes over time
d. All of the options are appropriate benchmarks
what is the benchmark profitability ratio for the telecom industry?
please attach a reference.
Chapter 15 Solutions
Excel Applications for Accounting Principles
Ch. 15 - The comparative financial statements of Global...Ch. 15 - The comparative financial statements of Global...Ch. 15 - a. What information does a comparison of the...Ch. 15 - Prepare a ratio analysis for Global Technology for...Ch. 15 - Compare your printout from requirement 2 with your...Ch. 15 - With the 2013 data still on the screen, click the...
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- Which financial ratios would you recommend to evaluate a company's solvency? Once these ratios are computed, what do you recommend comparing them to?arrow_forwardWhat does a relatively high ratio compared with those of competitors in the same industry indicate?arrow_forwardSusan is looking for a method of how she could calculate and interpret the financial ratio so as to have an analysis and monitoring of the firm's performance. Susan should use a. Benchmarking b. Ratio Analysis c. Cross Sectional Analysis d. Quick Ratio Analysisarrow_forward
- Compare current performance of firms to its past performance is called cross-sectional. Select one: O True O Falsearrow_forwardHow do managers, bankers, and security analysts use (a) trend analysis, (b) benchmarking,(c) percent change analysis, and (d) commonsize analysis?arrow_forwardWhat is the usefulness of using Ratio analysis in financial reporting? What is industry average? How it benefits?arrow_forward
- which of the following ratios would a supplier most likely monitor to assess the ability of a company to pay for its purchases in a timely manner? PE ratio price-to-sales ratio current ratio return on equity times interest earned ratioarrow_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_forwardWhat is the relevance and importance of industry ratings?arrow_forward
- Which of the following is required by the Sarbanes-Oxley Act? a.common-sized statement b.price-earnings ratio c.report on internal control d.vertical analysisarrow_forwardAn investor worried about a company’s long-term solvency would most likely examine its:A . current ratio.arrow_forwardExplain what Return on Assets (ROA) measures? Will two firms with the same EBIT have the same ROA?arrow_forward
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