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Whitepunk [10]
2 years ago
6

Vertical analysis is a tool to evaluate individual financial statement items or a group of items in terms of a specific base amo

unt. When analyzing income statement accounts, the base is usually a. revenueb.expensesc.net income
Business
1 answer:
mylen [45]2 years ago
8 0

Answer:

The correct answers are revenue; assets.

Explanation:

Just as you can use the vertical analysis applied to the Balance Sheet, you can also analyze the Income Statement, for which exactly the same procedure as for the balance sheet is followed, and the reference value will be sales, since it is due Determine how much a certain concept represents (Sales Cost, Operating Expenses, Non-Operating Expenses, Taxes, Net Profit, etc.) with respect to the total sales.

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Imagine that you are a parent, and your child is going to college in 4 years. Tuition fees amount to $16,000 a year for each of
LiRa [457]

Answer:

lump sum money= $52653

Explanation:

Giving the following information:

Your child is going to college in 4 years.

Tuition fees amount to $16,000 a year for each of the 4 years.

You plan on depositing a lump sum of money today in a bank account paying 5% interest a year.

The first tuition fee payment you make will be 4 years from now.

FV= 16000*4= $64000

n= 4 years

i= 0.05

We need to find the annual payments:

PV= FV/(1+i)^n

PV= 64000/1.05^4= $52653

7 0
2 years ago
The way to do inventory on bottles of liquid is:​
babunello [35]

The way to do inventory on bottles of liquid is count the bottles by the way they are positioned. See the bottles as if they are in a graph. Maybe a 5x9. then you know you have 45 bottles!

5 0
3 years ago
What type of activity is the purchase of equipment for cash?
RSB [31]
<span>Acquisition or Procurement is the means on how equipment is bought for businesses and the military. However for peoples own personal use, shopping is the more common everyday word.</span>
6 0
3 years ago
You own a portfolio equally invested in a Rf asset and two stocks. If one of the stocks has a beta of 1.85 and the total portfol
12345 [234]

Answer:

1.15

Explanation:

If investment is made in equal proportions, it means that;

weight in risk free ; wRF = 33.33% or 0.3333

Let the stocks be A and B

weight in stock A ; wA = 33.33% or 0.3333

weight in stock B; wB = 33.33% or 0.3333

Beta of A; bA = 1.85

Let the beta of the other stock be represented by "bB"  

Beta of risk free; bRF = 0

Beta of portfolio = 1 since it is mentioned that "the total portfolio is equally as risky as the market "

The weight of portfolio is equal to the sum of the weighted average beta of the three assets. The formula is as follows;

wP = wAbA + wBbB + wRF bRF

1 = (0.3333 * 1.85) + (0.3333*bB) + (0.3333 *0)

1 = 0.6166 +0.3333bB + 0

1 - 0.6166 = 0.3333bB

0.3834 = 0.3333bB

Next, divide both sides by 0.3333 to solve for bB;

bB = 0.3834/0.3333

w=bB = 1.15

Therefore, the beta for the other stock would be 1.15

5 0
3 years ago
According to the textbook, the only way to know if your product or service is what people want is by ________. talking to them l
vlabodo [156]
The answer is by having to survey the people or the consumers. For this could serve as a basis and to be able to determine the wants of the people and the popular trends in which they will like and what they want, in helping to produce better products and service.
8 0
3 years ago
Read 2 more answers
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