College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
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Chapter 24, Problem 5CE
To determine
Compute return on assets using the two basic components and return on common
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Conduct a vertical analysis from the Balance Sheet below and select the INCORERECT observation
Balance Sheet
Particulars
1. Equity And Liabilities:
1. Shareholder's Funds
(a) Share Capital
(b) Reserve and Surplus
2. Non-Current Liabilities
3. Current Liabilities
II. Assets:
1. Non-Current Assets
2. Current Assets
Total
Note
No.
Amount
A Ltd.
8 Ltd.
4,00,000
5,40,000
2,00,000 2,60,000
3,00,000 2,50,000
1,00,000 1,50,000
10,00,000 12,00,000
4,00,000 7,00,000
6,00,000 5,00,000
www.Totalgoel 10,00,000 12,00,000
O a. In comparison to B. Ltd, A Ltd's existing liabilities are (10%) are in a stronger way (12.50%)
O b. In comparison to A Ltd, B Ltd has a higher share capital
O c. B Ltd's Non Current Assets are 18.33% higher than A Ltd
O d. In comparison to A Ltd, B Ltd has a stronger long term status
O e. B Ltd's Current Assets are 18.33% higher than A Ltd
A vertical common-size income sheet expresses each category of the income statement as a percentage of
A.
assets.
B.
equity.
C.
revenue.
D.
operating income.
Capital structure refers to
Select one:
a. Total assets minus Liabilities
b. Shareholders' equity
c. Long-term debt, preferred stock, and common stock equity
d. Current assets and Current liabilities
Chapter 24 Solutions
College Accounting, Chapters 1-27
Ch. 24 - A comparison of amounts for the same item in the...Ch. 24 - Prob. 2TFCh. 24 - Prob. 3TFCh. 24 - Prob. 4TFCh. 24 - Prob. 5TFCh. 24 - Prob. 1MCCh. 24 - Prob. 2MCCh. 24 - Working capital is a measure of (a) liquidity. (b)...Ch. 24 - Prob. 4MCCh. 24 - Prob. 5MC
Ch. 24 - Prob. 1CECh. 24 - Prob. 2CECh. 24 - Compute the following profitability measures for...Ch. 24 - Prob. 4CECh. 24 - Prob. 5CECh. 24 - Prob. 6CECh. 24 - Prob. 1RQCh. 24 - Prob. 2RQCh. 24 - Prob. 3RQCh. 24 - Prob. 4RQCh. 24 - Prob. 5RQCh. 24 - Prob. 6RQCh. 24 - Prob. 7RQCh. 24 - Prob. 8RQCh. 24 - Prob. 9RQCh. 24 - Prob. 10RQCh. 24 - Prob. 11RQCh. 24 - Prob. 12RQCh. 24 - Prob. 13RQCh. 24 - Prob. 1SEACh. 24 - Prob. 2SEACh. 24 - ANALY SIS OF PROFITABILITY Based on the financial...Ch. 24 - ANALY SIS OF LEVERAGE Based on the financial...Ch. 24 - Prob. 5SEACh. 24 - Prob. 6SEACh. 24 - Prob. 7SEACh. 24 - Prob. 8SPACh. 24 - Prob. 9SPACh. 24 - RATIO ANALY SIS OF COMPARATI VE FIN ANCIAL STATE...Ch. 24 - Prob. 1SEBCh. 24 - Prob. 2SEBCh. 24 - Prob. 3SEBCh. 24 - Prob. 4SEBCh. 24 - Prob. 5SEBCh. 24 - Prob. 6SEBCh. 24 - Prob. 7SEBCh. 24 - Prob. 8SPBCh. 24 - Prob. 9SPBCh. 24 - RATIO ANALY SIS OF COMPARATI VE FIN ANCIAL STATE...Ch. 24 - Prob. 1MPCh. 24 - This problem challenges you to apply your...
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- Can you help me with #11-#13?arrow_forwardWhen using vertical analysis, we express balance sheet accounts as a percentage of a. Total assets. b. Total liabilities. c. Total stockholders’ equity. d. Sales.arrow_forwardThe return on equity is calculated using which of the following formulas? Multiple Cholce Net Income - Common Stock Net Income + Retalned earnings Net Income + Stockholders' equity Net Income - Average stockholders' equityarrow_forward
- In a common-size Balance Sheet, all items on the statement are divided by _________. a. total assets b. total liabilities c. net sales d. total shareholders' equityarrow_forwardDescribe the purpose of the five primary financial statements. Statement of Comprehensive Income Income Statement Balance Sheet Statement of Cash Flows Statement of Shareholder's Equity Give an example of a profitability, liquidity, and solvency ratio and explain the components and which financial statement would provide the informationarrow_forwardThe return on equity is calculated using which of the following formulas? Multiple Choice Net income Stockholders' equity Net income - Average stockholders' equity Net income ÷ Common Stock Net income ÷ Retained earningsarrow_forward
- Match each computation to one of the profitability measures in the table. Profitability Measures Computations Asset turnover Return on total assets Return on stockholders’ equity Return on common stockholders’ equity Earnings per share on common stock Price-earnings ratio Dividends per share Dividend yieldarrow_forwardA common-size balance sheet shows the firm's assets and liabilities as a percentage of ____. a. stockholders' equity b. total assets c. industry averages d. net salesarrow_forwardWhich financial ratio does the DuPont equation help to explain? ROA (return on assets) ROE (return on equity) EPS (earnings per share) DPS (dividends per share)arrow_forward
- Organize the following under Income Statement, Share Holder's Equity, and Balance Sheet. a. Interest Receivable b. Interest Revenue c. Accounts Payable d. Accumulated Depreciation e. Wage Payablearrow_forwardThe metrics based on financial numbers produced by the accounting system are ________. A. quantitative factors B. qualitative factors C. stakeholders D. stockholdersarrow_forwardDefinitional problems: Listed are eight terms that relate to financial statements:1. Balance-sheet statement2. Income statement3. Cash-flow statement4. Operating activities5. Investment activities6. Financing activities7. Treasury account8. Capital accountChoose the term from the list that most appropriately completes each of the following statements:1. As an outside investor, you would view a firm's____________ as the most important financial report for gauging the quality of earnings.2. Retained earnings as reported in the________ represent income earnedby the firm in past years that has not been paid out as dividends.3. The_________ is designed to show how a firm's operations have affectedits cash position by providing actual net cash flows into or out of the firmduring some specified period.4. Typically, a firm's cash flow statement is categorized into three activities:________ ,________and ___________,5. When you issue stock, the money raised beyond the par value is shown in the…arrow_forward
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