M/b ratios typically exceed one, which means that investors are willing to pay more for stocks than their accounting book values.
The Book value is the carrying amount of the company's assets minus the receivables (such as company liabilities) that exceed common stock. The term book value comes from the accounting practice of accounting for assets at their original costs.
The Book value of a company is total assets minus total liabilities. Total assets and total liabilities are included on the balance sheet of the annual and quarterly reports.
Book value refers to the value of the asset reported on the balance sheet, that is, the value of the asset after the accumulated depreciation has been recorded. Every company owns multiple assets. Therefore, every business also has a book value, which is the present value of the asset minus the liability or accrued debt.
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Answer:
1. Annual demand ( D) = 100,000 bags
Ordering cost per order (Co) = $15
Holding cost per item per annum (H) = 15% x $2 = $0.30
EOQ = √<u>2DCo</u>
H
EOQ = √<u>2 x 100,000 x $15</u>
0.30
EOQ = 3,162 units
2. Maximum inventory
= Safety stock + EOQ
= 1,500 + 3,162
= 4,662 units
3. Average inventory
= EOQ/2
= <u>3,162</u>
2
= 1,581 units
4. Number of order
= <u>Annual demand</u>
EOQ
= <u>100,000</u>
3,162
= 32 times
Explanation:
EOQ is the square root of 2 multiplied by annual demand and ordering cost per order divided by holding cost per item per annum.
Maximum inventory is the aggregate of safety stock and EOQ.
Average inventory is economic order quantity divided by 2
Number of order is the ratio of annual demand to economic order quantity.
An income statement that expresses each line item as a percentage of a base amount is known as a common-size income statement
<h3>What is common-size statement?</h3>
An income statement that expresses each line item as a percentage of a base amount is known as a common-size income statement. Typically, this refers to overall earnings or total sales. Financial ratio analysis's objective is comparable to that of a common-size income statement. Items are shown as a percentage of a common base amount, such as total sales revenue, in a financial statement of common size. This kind of financial statement makes it simple to compare one company to another or different time periods within the same company.
The common-size statement refers to expressing each value as a percent of sales:
Sales 3,340 100.000%
income 274 8.234% (274 divided by 3340 times 100)
fixed assets 2,699 80.809%
current assets 836 25.030%
Inventory 417 0.12485 (417/3,340)
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Answer:
B the responsiveness of quantity demanded of a good due to a change in its price.
Explanation:
B ...
