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olganol [36]
2 years ago
6

The CFO of James Jeans Co. has asked you to perform an analysis to assess how the company is performing relative to its two larg

est competitors. Which vertical analysis approach will provide the most effective evaluation to the CFO
Business
1 answer:
damaskus [11]2 years ago
8 0

The vertical analysis approach that will provide the most effective performance evaluation of James Jeans Co. and its two largest competitors is <u>Option B.</u>

<h3>What is a vertical analysis?</h3>

A vertical analysis is a financial statement analysis with each line item listed as a percentage of the base figure from the financial statement.

For example, the vertical analysis calculates the balance sheet percentage by dividing each asset line item by the total assets.  

<h3>Answer Options:</h3>

A. Review the stock price performance of the three companies over the last several years and the Wall Street Analyst buy/sell recommendations: compare debt ratings: review messages on key business websites and blogs to learn what is being said about the company and competitors.

B. Calculate cost of goods sold, selling and administrative expenses, and net income as a percentage of net sales for James Jeans and the two largest competitors; draw conclusions from these results and highlight similarities and differences.

C. Identify the structure of the sales and marketing team of each company, gather information about customer product reviews, and review product warranty claims to understand the comparative performance.

D. Analyze the size of each company's balance sheet and income statement accounts by calculating how much larger or smaller the competitors are compared to James Jeans Co. summarize observations about what might be the reasons for these size differences.

Thus, the vertical analysis approach that will provide the most effective performance evaluation of James Jeans Co. and its two largest competitors is <u>Option B.</u>

<em>"Calculate the cost of goods sold, selling and administrative expenses, and net income as a percentage of net sales for James Jeans and the two largest competitors; draw conclusions from these results and highlight similarities and differences."</em>

<em />

Learn more about vertical analysis at brainly.com/question/15694796

#SPJ1

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Which of the following statements about Treasury Stock is correct? Multiple Choice The balance in the Treasury Stock account inc
DedPeter [7]

Answer:

The balance in the Treasury Stock account reduces total Stockholders' Equity

Explanation:

Treasury stock also known as reacquiring stock refers to outstanding shares which were previously owned by a company which is then bought back by shareholders of that company. Treasury stock do not have much value but provide  means of  raising the price of share which in turn provides profits for investors.  

Treasury stock is normally recorded in the shareholders equity section of the balance sheet representing the number of repurchased shares from the open market, thereby reducing shareholder's equity by the amount paid for the stock

8 0
3 years ago
Loree manages the service desk and makes routine decisions related to customer refunds and merchandise returns. Loree also overs
Eva8 [605]

Answer:

First-line manager.

Explanation:

A first-line manager is a person within a company who is directly above all other personnel who are not managers. They have various obligations, such as the aforementioned routine decisions, service desk, feedback, work satisfaction, etc. When it comes to some more serious decisions, this type of a manager is not allowed to make them but rather only advise higher ups.

8 0
3 years ago
As an it professional you may support databases, but not do any application coding, why do you think it is still important to un
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3 0
2 years ago
Shawna wins the lottery and her income increases by 60 percent. she used to buy 10 pints of cottage cheese per month and now she
Dmitriy789 [7]

Answer: Her income elasticity of demand for cottage cheese is <em><u>0.3333</u></em> making it a <em><u>normal and necessary</u></em> good.

The income elasticity  of demand is given by :

\mathbf{YED = \frac{percentage change in demand}{percentage change in income}}

The percentage change in income is given as 60%. We calculate the percentage change in quantity demanded as follows:

\mathbf{percentage change in quantity demanded = \frac{Q_{1}-Q_{0}}{Q_{0}}}

\mathbf{percentage change in quantity demanded = \frac{12-10}{10}}

\mathbf{percentage change in quantity demanded = 0.2}\\

Substituting the value above in the income elasticity demand formula we get,

\mathbf{YED = \frac{0.20}{0.60}}

<u>YED = 0.33333</u>

Since the income elasticity is positive, and since Shawna buys more cottage cheese after an increase in income, we can classify this good as a normal good.

Since the income elasticity is between 0 and 1 we can also conclude that cottage cheese is also a essential good or a necessity.

7 0
3 years ago
Year 1 Year 2 Amounts billed to clients for services rendered $ 182,000 $ 232,000 Cash collected from clients 154,000 184,000 Ca
Advocard [28]

Answer:

Explanation:

Year 1:

Cash collected from clients $154,000

Salaries paid to employees for services rendered during the year $27,000

Utilities $84,000

Purchase of insurance policy $58,200

So, in order to find net cash flow, $(154000-27000-84000-58200)=-15200

Year 2:

Cash collected from clients $184,000

Salaries paid 34000

Utilities paid 94000

Insurance paid is 0

So, net cash flow $184000-$(34000+94000)=$56000

Year1 paid 27000 in salaries, accrued =32000

So still 5000 has to be paid in year 2

Year 2 paid 34000 ⇒ so accrued is 29000

Insurance accrued for each year is 58200/3=19400

Income statement for year 1 and 2

                                         year1   year2

Revenue:  

Income from services 182000 232000

Expense

Salary 84000 94000

Utilities 32000 29000

Insurance 19400 19400

Net income 46600 89600

5 0
3 years ago
Read 2 more answers
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