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3 years ago

One reason that a common-sized statement is a useful tool in financial analysis is that it enables the user to do what?

Business

1 answer:

Nonamiya [84]3 years ago

6 0

Answer:

It helps to compare two companies in the same industry.

Explanation:

A common-size statement is a critical tool in the financial analysis, as it helps to compare two companies with different size. It is a type of income statement where every feature is represented in the percentage, which helps to compare two companies effectively. Overall, it is an important indicator to measure strength and weakness in a company.

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Greg and Joyce have an adjustable rate mortgage on their home. What is the key feature of this type of loan?

vladimir1956 [14]

Answer: Interest rate can vary

Explanation: Based on the description of Greg's and Joyce's mortgage loan, the key term is the adjustable nature of the loan used to finance the mortgage. Being adjustable simply means not fixated. Hence, the interest on the loan is bound to change throughout the entire period of the loan. This type of mortgage loans are called ADJUSTABLE RATE MORTGAGE or FLOATING mortgage. The change in the interest rate applied on the outstanding balance of is usually at intervals which could be annually, semianually or monthly basis as the case may be.

6 0

3 years ago

Prime Corporation liquidates its 85% owned subsidiary Bass Corporation under the provisions of Secs. 332 and 337. Bass Corporat

aliya0001 [1]

Answer:

$20000 gain for John Corporation and $10000 loss for Bass Corporation.

Explanation:

John Corporation gain(loss) = FMV of property - Liability assumed - Stock basis

= 55000-10000-25000

= 20000

Bass Corporation gain/loss = 55000-65000

= - 10000

Therefore, $20000 gain for John Corporation and $10000 loss for Bass Corporation.

5 0

3 years ago

Wendell’s Donut Shoppe is investigating the purchase of a new $40,000 donut-making machine. The new machine would permit the com

Komok [63]

Solution and Explanation:

Answer:1 The total annual cash inflows associated with the new machine for capital budgeting purposes is:

$=\$ 5200+(2000 * \$ 2.40 \text { per dozen })$

=$10000

Answer:2 The internal rate of return promised by the new machine to the nearest whole percent is:

Particulars Year Amount ($)

Cash outflow 0 -40000

Cash inflow 1 10000

2 10000

3 10000

4 10000

5 10000

6 10000

IRR 13%

=13% using IRR function in excel.

Answer:3 IRR=17%

with salvage value

Particulars Year Amount ($)

Cash outflow 0 -40000

Cash inflow 1 10000

2 10000

3 10000

4 10000

5 10000

6 22000

IRR 17%

using IRR function in excel.

5 0

3 years ago

A company planned to sell 100 canoes for the month of April at an average sales price of $600. Midway through the month, the com

andreyandreev [35.5K]

Answer:

flexible budget amount for canoe sales revenue for April is $72000

Explanation:

given data

sell = 100 canoes

average sales price = $600

sold = 65

total sales = 130

canoes at an average price = $595

actual sales = 120 canoes

to find out

flexible budget amount for canoe sales revenue for April

solution

we know here for flexible budget april sale unit are = 120

and selling price is $600

so that April sales will be here = 120 × 600

April sales = 72000

so flexible budget amount for canoe sales revenue for April is $72000

3 0

3 years ago

Behaving in an acceptable manner within a workplace environment is refered to as workplace etiquette.

alexandr402 [8]

True because workplace etiquette is behaving with manners and kindness

8 0

3 years ago

Read 2 more answers