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Oliga [24]
3 years ago
14

If you were interested in evaluating the profitability of a company and could have only limited historical data, would you prefe

r to know operating income or net income for the past five years?
Business
1 answer:
Rudik [331]3 years ago
5 0
I will prefer to know the OPERATING INCOME. Operating income refers to the operating profits of a company before the taxes and interests are removed. It reflects the true situation of the company and can be used to analyse if a company is making profits from its manufacturing process or not. The net income of a company has some expenses and costs that do not reflect the core operations of the company. 
You might be interested in
Yellow Enterprises reported the following ($ in 000s) as of December 31, 2018. All accounts have normal balances. Deficit (debit
horsena [70]

Answer:

The shareholders equity as of 31 December, 2018 is $32,240

Explanation:

Here for calculating the shareholders equity we will first have to find the total paid in capital of the Yellow enterprises and after that we will subtract the deficit balance that is remained in the retained earnings account, by doing this we will get the total paid in capital and retained earnings. Now we just have to subtract the treasury stock from the total paid in capital and retained earnings to get the remaining balance , which would be the shareholders equity of the Yellow enterprises.

so first step would be taking out total paid in capital =

                         common stock

                                   +

                         paid in capital(excess of par)

                                   +

                        paid in capital treasury stock

=       2700 + 31,500 + 1300

Total paid in capital = $35,500

Next step is to subtract deficit balance in retained earnings from this to get the total paid in capital and retained earnings =

   total paid in capital - deficit balance in retained earnings

Total paid in capital and retained earnings = $35,500 - $3000

                                                                        = $32,500

Now the last step for taking out shareholders equity we will subtract the treasury stock from the total paid in capital and retained earnings,

Shareholders equity = total paid in capital and retained earnings

                                                          -

                                              treasury stock at cost

                                   = $32,500 - $260

                                    = $32,240

3 0
3 years ago
An asset was purchased for $126,000 on January 1, Year 1, and originally estimated to have a useful life of 8 years with a resid
katrin [286]

Answer:

The correct answer is $23,663

Explanation:

Spreadsheet is attached with the calculus.  

Depreciation expense is the difference between the cost of the asset and the residual value, divided by the useful life of the asset.

Depreciation expense=(original cost-residual cost) /useful life

In this case,  conditions change at third year.  First, we must calculate the depreciation expense with the first situation. The first 2 years , we are going to decrease the asset value  with this depreciation expense.

Situation 1  Depreciation expense 14375

At third year ,  we must recalculate the depreciation expense.  The final value of second years is the  new "original value".

Situation 2

Original Value  97250

Residual Value  2600

Useful life  4

Depreciation expense= (97250 - 2600 )/4

Depreciation expense= 23,663

Download xlsx
4 0
3 years ago
Nori is writing an essay to analyze an advertisement for a piece of athletic equipment. What elements should he include in order
Anettt [7]

Answer:

2. the advertising techniques used to persuade the viewer. In order to do this, Nori need to determine whether the advertisers using a visual or principle attraction method for this product

4. what tools the advertiser uses to sell the product. This could range from newspaper, billboard, television, or phamplets

5. the purpose of the advertiser's message. Nori need to do this in order to find out the customer segmentation of the product

4 0
2 years ago
Read 2 more answers
Suppose that you won a lawsuit and were awarded a series of payments of $10,000 a year for 10 years. Assuming an interest rate o
DochEvi [55]
Okay. So it's $10,000 per year, which is $100,000 in 10 years. I'm not so sure how to solve it exactly, but I found a lump sum calculator online. I put the information on that and according to the calculator, today's payment in a lump sum would be $50,894.93. The future value is $100,000 with 10 periods (in this case, years) of the interest rate of 7% once per year. I think that the answer is $50,894.93.
4 0
3 years ago
The Wiz Co. owes $60 to its bondholders. The company expects to have a cash flow of $136 if the economy continues as is but that
Schach [20]

Answer:

$24

Explanation:

Calculation for the amount that the bondholders

will paid in the case of a recession

Using this formula

Amount to be paid by Bondholder=Decreased in cash flow- Legal and other fees

Let plug in the formula

Amount to be paid by Bondholder = $54 − $30

Amount to be paid by Bondholder= $24

Therefore the amount that the bondholders will paid in the case of a recession is $24

3 0
3 years ago
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