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mixer [17]
3 years ago
15

A vertical analysis calculates percentages to compare the parts of an individual statement to the whole. For example, on an inco

me statement, each item could be shown as a percentage of net sales.1. True2. False
Business
1 answer:
vichka [17]3 years ago
7 0

Answer:

1. True

Explanation:

Vertical analysis the the percentage calculation of each item of Income statement with Gross revenue. We calculate the percentage of Gross margin which is the percent of Gross income and gross sales. Just like this the COGS to sales, Net income margin, operating income margin and operating expenses to sales ratio are calculated in vertical analysis to check the sensitivity of each part of the income to the gross income.

Ye it is true that A vertical analysis calculates percentages to compare the parts of an individual statement to the whole. For example, on an income statement, each item could be shown as a percentage of net sales.

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Because Toyota's investment eventually increases the level of R&D spending for his given level of sales revenue what would t
dsp73

Available Options Are:

a. Increasing ROIC by increasing return on sales

b. Decreasing ROIC by increasing return on sales

c. Decreasing ROIC by decreasing return on sales

d. Increasing ROIC by decreasing return on sales

Answer:

Option C. Decreasing ROIC by decreasing return on sales

Explanation:

The return on sales would be reduced as the research expenses have increased substantially. The implications of increased research expenses on the ROIC can be understood by analyzing the ROIC formula which is given as under:

ROCI  =  Operating Income (1 - Tax Rate) / Book Value of Invested Capital

As revenue expenditure (Research and Development expenses) of the company has increased, this would decrease the operating income of the company which means that the numerator would be decreased and as a result the ROIC would decrease.

6 0
3 years ago
Last year, Tinklenberg Corporation's variable costing net operating income was $52,400 and its inventory decreased by 1,400 unit
mihalych1998 [28]

Answer:

The correct option is D,$41,200

Explanation:

The fact that inventory reduced by 1,400 units implies that the  fixed costs of 1,400 units added to closing inventory under absorption costing method has now been released into income statement as an additional cost in the current year,as result profit under absorption costing method reduce by the increased fixed costs:

net operating income under variable costing   $52,400

less:additional fixed costs (1,400*$8)                  ($11,200)

Profit under absorption costing method              $41,200

The correct option is D,$41,200

8 0
3 years ago
People earn what by working to produce goods and services
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People eatn money or income
7 0
3 years ago
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Devin wants to purchase DEF stock for a specified price of $40.00 or less, and he understands this request will be executed afte
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Answer:

He should use a limit order.

Explanation:

Limit order is given to a broker to buy a stock at a specified price or a price that is better that the specified price. Here Debin order will be executed at a price $40 or below when he places a limit order .

Therefore, He should use a limit order.

3 0
3 years ago
A concrete block making company is developing an aggregate capacity plan from the following sales forecast for its 6” and 8” con
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