All categories

3 years ago

Selecting a base year and expressing each amount as a percent of the base year amount is called:

1 answer:

4 0

The process of selecting a base year and expressing the amount as a percent of the base year amount is referred to as trend analysis. Percentage change can be calculated between two periods or over a longer period of time.

Percentage change between two periods:

Subtract the earlier year from the later year. A negative difference means the change is a decrease. A positive difference means it is an increase. Then divide the change by the earlier year's balance.

Percentage change over a longer period of time:

1. Select the base year.

2. Divide the amount in each nonbase year (for each line item) by the amount in the base year and multiply by 100.

You might be interested in

The _______ method of reporting the statement of cash flows reports net income and then adjusts it for items that do not affect

marissa [1.9K]

Answer: Indirect

Explanation: the indirect method reports net income then adjusts it.

7 0

2 years ago

To avoid the difficulties involved in starting a business from scratch, Sana decides to obtain the rights to operate an outlet o

Mariana [72]

Answer:

Franchisee

Explanation:

A franchise business is a form of business arrangement where a business owners , who is known as the franchisor , sells the right to operate its business to another entity known as the Franchisee.

This business arrangement is legally binding an it gives right to the use of the business name , logo ,and model to third party retail outlet.

This explains the type of business arrangement that Sana is planning , considering the explanation given in the question.

8 0

4 years ago

Read 2 more answers

Sheridan Company is planning to sell 900 boxes of ceramic tile, with production estimated at 670 boxes during May. Each box of t

lisabon 2012 [21]

Answer:

$3,685

Explanation:

Calculation to determine the total amount to be budgeted for manufacturing overhead for the month

Using this formula

Total budgeted for manufacturing overhead =(Estimated boxes)(Quarter Hour Direct labor)(Per hour cost)*(Overhead applied rate)

Let plug in the formula

Total budgeted for manufacturing overhead =(670) (.25) ($20) (1.1)

Total budgeted for manufacturing overhead =$3,685

Therefore the total amount to be budgeted for manufacturing overhead for the month is $3,685

5 0

3 years ago

Credit risk measures using the structural model: assume a company has the following characteristics.

Alexeev081 [22]

Answer:

a ) Probability of default of debt over the time to maturity is 12.92%

(b ) Expected loss: $39.53

(C ) Present value of expected loss is $45.59

Explanation:

a ) Probability of default of debt over the time to maturity is 12.92%

(b ) Expected loss: $39.53

(C ) Present value of expected loss is $45.59.

Values calculated as shown in my detailed step by step answer at the attachment.

please kindly refer to attachment.

4 0

3 years ago

Balance Sheet

anyanavicka [17]

Answer:

a. current ratio = 1.98

b. average collection period = 32.85 days

c. debt ratio = 35,56%

d. total asset turnover ratio = 1.11 times

e. operating profit margin = 47,50%

f. inventory turnover ratio = 2 times

Explanation:

a. current ratio

Current ratio = Current Assets / Current Liabilities

= 3,075,000 / 1,550,000

= 1.98

b. average collection period.

Average collection period = Accounts Receivable / (Sales / 365)

= 900,000 / (10,000,000 / 365)

= 32.85 days

c. debt ratio.

Debt ratio = Interest bearing debt / Total Assets × 100

= (700,000+2,500,000)/ 9,000,000 × 100

= 35,56%

d. total asset turnover ratio.

Total asset turnover ratio = Sales / Total Assets

= 10,000,000 / 9,000,000

= 1.11 times

e. operating profit margin

Operating profit margin = Operating Profit / Sales × 100

= (4,550,000+200,000) / 10,000,000 × 100

= 47,50%

f. inventory turnover ratio

Inventory turnover ratio = Cost of Sales / Inventory

= 3,000,000 / 1,500,000

= 2 times

7 0

4 years ago