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3 years ago

Do these ratio values and ratios look strong, weak or in between?

Business

1 answer:

kvasek [131]3 years ago

5 0

Answer:

Ratio values cannot be judged in isolation. For example, the Phone Corporation's ratios calculated previously have no industry benchmarks against which they can be compared. The ratios for competitor can also be used for comparison. Again, the ratios were calculated for only one period in each case. There should be a trend analysis and computation of ratios over some years in order to assess their strengths and weaknesses.

Overall, they do not look strong. But, one should not be too quick to conclude on this issue.

Explanation:

Ratio analysis is a technical method of gaining insight into a company's liquidity, operational efficiency, and profitability by comparing the elements of its financial statements such as the balance sheet and income statement. While ratio analysis is a cornerstone of fundamental equity analysis, it must be noted that the values produced are just relative measures which cannot be meaningful without being related to some benchmarks or compared over a number of years.

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Call Systems Company, a telephone service and supply company, has just completed its fourth year of operations. The direct write

shepuryov [24]

Answer:

Year Sales Written Off Accounts

Year of Origin

Uncollectible 1 2 3

1st $ 900,000 $4,500 $4,500

2nd 1,250,000 9,600 3,000 $6,600

3rd 1,500,000 12,800 1,000 3,700 $8,100

4th 2,200,000 16,550 1,500 4,300 $10,750

Year <u> Bad Debt Expense </u>

Expense Actually Expense Increase Balance of Allowance

Reported Estimated (Decrease) Account Year End

1) $4500 $ 9000 $4500 $ 4500

2) $ 9600 $12500 1900 $ 6400

3) $12800 15000 2200 $ 8600

4) 16550 22000 5450 14,050

Explanation:

The actual write off accounts originating in the years were

1) ( $ 4500+ $ 3000+ $ 1000+ $ 1500)= $ 9500

2) ( $ 6600+ 3700+ 4300) = $ 14600

3) ($ 8100+ $ 10,750)= $ 18,850.

Only the first year written off accounts are close to expense if it would have been calculated to 1% of sales ( 1% of $ 900,000) = $ 9000

4 0

3 years ago

Consider the case of a good with external benefits. If you plant trees in front of your house, the neighborhood is more attracti

Veronika [31]

Answer:

1. b. Tax homeowners who plant trees.

2. Win - society and consumer

Loose - tax payers and producers.

Explanation:

1. a). If the good creates a positive externalities, then the $\text{private benefits from the good are less than the social benefits}$ from the good.

In the context, the following would not help to correct the problem :

Taxing the homeowners who plant the trees.

If the government taxes or takes some money form the people or the house owners who plant trees in their neighborhood will discourage the people to plant the trees and would not help in correcting the problem.

2. If the government pays for the program that helps to increase the planting the trees, then,

the one who will win from this program is : society and the consumers

the one who will loose : tax payers and the producers as the government would impose more tax in order to fuel the project.

6 0

3 years ago

Question 8 of 10

jolli1 [7]

Answer:B. A touch screen computer

Explanation:

8 0

3 years ago

If nothing is stated to the contrary in terms of an auction, an auction is presumed to be ________.

KATRIN_1 [288]

Answer: with reserve

Explanation: If nothing is stated to the contrary in terms of an auction,an auction is presumed to be ________.

A)non-binding

B)a quasi-contract

C)without reserve

D)with reserve

E)an implied-in-law contract

An auction is presumed to be with reserve if nothing is stated to the contrary (in terms of an auction). What this means is that the seller is merely expressing or showing his intent to receive offers. In contrast, however, if an auction is without reserve, the lowest bid must be accepted by the auctioneer but if it is with reserve, the auctioneer may refuse to sell the item if he is not satisfied with the size of the highest bid.

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3 years ago

In a closed economy, the values for GDP, consumptionspending, investment spending, transferpayments, and taxes are as foll

V125BC [204]

Answer:

Option (C) is correct.

Explanation:

Private saving refers to the savings of the households which cannot be used for the consumption and tax payment.

Public saving refers to the savings of the government.

Private savings:

= Income - Consumption - Taxes + Transfer payments

= $12 - $9 - $3 + $2

= $2 trillion

Public savings:

= Taxes - Transfer payment

= $3 trillion - $2 trillion

= $1 trillion

5 0

3 years ago

Do these ratio values and ratios look​ strong, weak or in​ between?

Do these ratio values and ratios look strong, weak or in between?