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77julia77 [94]
3 years ago
7

A financial ratio by itself tells us little about a company since financial ratios vary a great deal across industries. There ar

e two basic methods for analyzing financial ratios for a company: time trend analysis and peer group analysis. Why might each of these analysis methods be useful? What does each tell you about the company’s financial health?
Business
1 answer:
Sergio [31]3 years ago
3 0

Answer:

When doing time trend analysis for financial ratios we can know how a company's ratio's have changed over time or if they have remained the same, so for example if a company's current ratio was less than 1 a year ago and is 3 now it means that the company was not very liquid a year ago but since then has made changes because of which it is liquid now, so we can see how a company has performed over a certain period of time.

On the other hand peer group analysis tells us how a company is performing compared to other companies in the same industry. For example if our cement company has a profit margin of 7% but the industry average is 15% we know that our company is doing something wrong  or different as compared to the industry and we can look into it.

Explanation:

You might be interested in
A company is considering two designs for a machine in its manufacturing line. The first, called machine A, will cost $160000 in
ExtremeBDS [4]

Answer:

The indifference point is 1,410 units

Explanation:

Giving the following information:

Machine A:

Fixed costs= $160,000

Unitary variable cost= $80

Machine B:

Fixed costs= $270,000

Unitary variable cost= $2

<u>First, we need to structure the total cost formula for each machine:</u>

Machine A= 160,000 + 80x

Machine B= 270,000 + 2x

x= number of units

<u>Now, we equal both formulas and isolate x:</u>

160,000 + 80x = 270,000 + 2x

78x = 110,000

x= 110,000/78

x= 1,410 units

The indifference point is 1,410 units

6 0
3 years ago
You need a 35-year, fixed-rate mortgage to buy a new home for $295,000. Your mortgage bank will lend you the money at an APR of
Anika [276]

Answer:

$434,780.69

Explanation:

The computation of the large the ballon payment would be is determined by using the future value formula i.e. to be shown in the attachment

Provided that

Present value = $295,000

Rate of interest = 5.9% ÷ 12 months  = 0.49166%

NPER = 35 years × 12 months = 420 months

PMT = $1,350

The formula is shown below:

= -FV(Rate;NPER;PMT;-PV;type)

So, after applying the above formula, the future value is $434,780.69

8 0
3 years ago
Ellis Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just comple
shusha [124]

Answer:

It is the Cost of Goods Manufactured that should be transferred to the Finished Goods account. As both of them are asset account, adding to the Finished Goods account would debit it and taking from the Work in Process account would credit it.

Date                 Account Title                                          Debit                Credit

XX-XX-XXX     Finished Goods                                $1,469,000

                        Work in Process                                                       $1,469,000

4 0
3 years ago
In an annual report, management's views on significant events, trends, and uncertainties pertaining to the company's operations
Art [367]

Answer:

The correct answer is: Management Discussion and Analysis.

Explanation:

Management Discussion and Analysis or MD&A is the section of the financial statement that provides a subjective point of view of the firm's perspective on the same organization. The MD&A is part of the Securities Exchange Commission (<em>SEC</em>) form 10-K and highlights the company's expectations on its operations, liquidity, and capital resources.

5 0
3 years ago
When Austin, Texas decides to implement a new tax code that will impose a new tax on business owners within its city limits, whi
Alex_Xolod [135]

The applicable law in the instance when Austin, Texas decides on imposing a new tax code on business owners within the city is <u>B. Public law.</u>

<h3>What is Public Law?</h3>

Public law concerns all matters pertaining to the relationship between the city government and legal entities or persons residing or doing businesses in the city. Public law, therefore, governs the relationship between the city and its subjects, which include individuals and organizations within the city.

<h3>Answer Options:</h3>

A. Private law

B. Public law

C. Federal law

D. Criminal law

E. State law

Thus, the applicable law in this instance is public law and not private, federal, criminal, or state laws.

Learn more about public laws at brainly.com/question/26332646

5 0
2 years ago
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