Current Ratio : It shows whether company will be able to pay their current liabilities out of their current asset or not. It comes after dividing current liabilities from current assets. Profit Margin Ratio: It shows how much company is earning for every dollar of their revenue. It comes after dividing net sales from revenue in percentage terms. 1. a. Profit margin.

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Answer 1

Question

Chapter 3, Problem 2BTN

To determine

Current Ratio:

It shows whether company will be able to pay their current liabilities out of their current asset or not. It comes after dividing current liabilities from current assets.

Profit Margin Ratio:

It shows how much company is earning for every dollar of their revenue. It comes after dividing net sales from revenue in percentage terms.

1.

a.

Profit margin.

To determine

Profit margin.

To determine

2.

To explain: Company with better performance on the basis of profit margin.

To determine

3.

Current ratio of both companies of both years.

To determine

4.

To explain: Which company has the better ability to pay short term obligation.

To determine

5.

To explain: Condition of current ratio of both companies for past two years.

To determine

6.

To explain: Condition of current ratio of both companies as comparison to industry average.

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Answer 2

Question

Chapter 3, Problem 2BTN

To determine

Current Ratio:

It shows whether company will be able to pay their current liabilities out of their current asset or not. It comes after dividing current liabilities from current assets.

Profit Margin Ratio:

It shows how much company is earning for every dollar of their revenue. It comes after dividing net sales from revenue in percentage terms.

1.

a.

Profit margin.

To determine

Profit margin.

To determine

2.

To explain: Company with better performance on the basis of profit margin.

To determine

3.

Current ratio of both companies of both years.

To determine

4.

To explain: Which company has the better ability to pay short term obligation.

To determine

5.

To explain: Condition of current ratio of both companies for past two years.

To determine

6.

To explain: Condition of current ratio of both companies as comparison to industry average.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 3, Problem 2BTN

To determine

Current Ratio:

It shows whether company will be able to pay their current liabilities out of their current asset or not. It comes after dividing current liabilities from current assets.

Profit Margin Ratio:

It shows how much company is earning for every dollar of their revenue. It comes after dividing net sales from revenue in percentage terms.

1.

a.

Profit margin.

To determine

Profit margin.

To determine

2.

To explain: Company with better performance on the basis of profit margin.

To determine

3.

Current ratio of both companies of both years.

To determine

4.

To explain: Which company has the better ability to pay short term obligation.

To determine

5.

To explain: Condition of current ratio of both companies for past two years.

To determine

6.

To explain: Condition of current ratio of both companies as comparison to industry average.

Expert Solution & Answer

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See solution

Answer 4

Question

Chapter 3, Problem 2BTN

To determine

Current Ratio:

It shows whether company will be able to pay their current liabilities out of their current asset or not. It comes after dividing current liabilities from current assets.

Profit Margin Ratio:

It shows how much company is earning for every dollar of their revenue. It comes after dividing net sales from revenue in percentage terms.

1.

a.

Profit margin.

To determine

Profit margin.

To determine

2.

To explain: Company with better performance on the basis of profit margin.

To determine

3.

Current ratio of both companies of both years.

To determine

4.

To explain: Which company has the better ability to pay short term obligation.

To determine

5.

To explain: Condition of current ratio of both companies for past two years.

To determine

6.

To explain: Condition of current ratio of both companies as comparison to industry average.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 3, Problem 2BTN

To determine

Current Ratio:

It shows whether company will be able to pay their current liabilities out of their current asset or not. It comes after dividing current liabilities from current assets.

Profit Margin Ratio:

It shows how much company is earning for every dollar of their revenue. It comes after dividing net sales from revenue in percentage terms.

1.

a.

Profit margin.

To determine

Profit margin.

To determine

2.

To explain: Company with better performance on the basis of profit margin.

To determine

3.

Current ratio of both companies of both years.

To determine

4.

To explain: Which company has the better ability to pay short term obligation.

To determine

5.

To explain: Condition of current ratio of both companies for past two years.

To determine

6.

To explain: Condition of current ratio of both companies as comparison to industry average.

Answer 6

Chapter 3, Problem 2BTN

To determine

Current Ratio:

It shows whether company will be able to pay their current liabilities out of their current asset or not. It comes after dividing current liabilities from current assets.

Profit Margin Ratio:

It shows how much company is earning for every dollar of their revenue. It comes after dividing net sales from revenue in percentage terms.

1.

a.

Profit margin.

Answer 7

Chapter 3, Problem 2BTN

To determine

Current Ratio:

It shows whether company will be able to pay their current liabilities out of their current asset or not. It comes after dividing current liabilities from current assets.

Profit Margin Ratio:

It shows how much company is earning for every dollar of their revenue. It comes after dividing net sales from revenue in percentage terms.

1.

a.

Profit margin.

Answer 8

To determine

Profit margin.

Answer 9

To determine

Profit margin.

Answer 10

To determine

2.

To explain: Company with better performance on the basis of profit margin.

Answer 11

To determine

2.

To explain: Company with better performance on the basis of profit margin.

Answer 12

To determine

3.

Current ratio of both companies of both years.

Answer 13

To determine

3.

Current ratio of both companies of both years.

Answer 14

To determine

4.

To explain: Which company has the better ability to pay short term obligation.

Answer 15

To determine

4.

To explain: Which company has the better ability to pay short term obligation.

Answer 16

To determine

5.

To explain: Condition of current ratio of both companies for past two years.

Answer 17

To determine

5.

To explain: Condition of current ratio of both companies for past two years.

Answer 18

To determine

6.

To explain: Condition of current ratio of both companies as comparison to industry average.

Answer 19

To determine

6.

To explain: Condition of current ratio of both companies as comparison to industry average.

Answer 20

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Answer 21

Expert Solution & Answer

Answer 22

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Answer 23

Ch. 3 - Prob. 1MCQ Ch. 3 - Prior to recording adjusting entries, the Supplies...Ch. 3 - Prob. 3MCQ Ch. 3 - Prob. 4MCQ Ch. 3 - If a company had $ 15,000 in net income for the...Ch. 3 - What is the difference between the cash basis and...Ch. 3 - Why is the accrual basis of accounting generally...Ch. 3 - What type of business is most likely to select a...Ch. 3 - Prob. 4DQ Ch. 3 - Prob. 5DQ

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Profit margin.

2.

To explain: Company with better performance on the basis of profit margin.

3.

Current ratio of both companies of both years.

4.

To explain: Which company has the better ability to pay short term obligation.

5.

To explain: Condition of current ratio of both companies for past two years.

6.

To explain: Condition of current ratio of both companies as comparison to industry average.

Want to see the full answer?

Chapter 3 Solutions

Videos

Profit margin.

2. To explain: Company with better performance on the basis of profit margin.

3. Current ratio of both companies of both years.

4. To explain: Which company has the better ability to pay short term obligation.

5. To explain: Condition of current ratio of both companies for past two years.

6. To explain: Condition of current ratio of both companies as comparison to industry average.

Want to see the full answer?

Chapter 3 Solutions

2.

To explain: Company with better performance on the basis of profit margin.

3.

Current ratio of both companies of both years.

4.

To explain: Which company has the better ability to pay short term obligation.

5.

To explain: Condition of current ratio of both companies for past two years.

6.

To explain: Condition of current ratio of both companies as comparison to industry average.