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IrinaVladis [17]
3 years ago
5

Based on the following information from ABC Company's financial analysis, which one of the following statements is NOT true?

Business
1 answer:
Vlada [557]3 years ago
5 0

Answer:

ABC Company

Financial Analysis:

A. The cost of goods sold has been increasing over the five years.

Explanation:

The gross profit ratio was 58.3% in year 1 and continued a downward spiral to 41.3% in year 5.  This depicted an underlying fact that the cost of goods sold had been increasing over the years.  The cost of goods sold influences the gross profit, and with the sales value remaining stable over the years, the ability of the company to generate enough profit out of its sales had been impaired greatly.  Fortunately, for ABC Company, the increasing cost of goods sold did not increase alongside the fixed costs of running the business.  This resulted to an increasing net profit ratio over the same period.

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Susan opened a savings account with $750 at 2.9 percent annual interest. If she keeps the money in the account for 2 years, what
Andrews [41]

Answer:

The answer is $793.50

Explanation:

To solve this, we will use the annual interest formula for simple interest, which is:

A = P(1 + <em>rt</em>)

Where:

  • A is the final amount including principal
  • P is the principal amount = $750
  • <em>r</em> is the rate per year = 2.9% or 0.029 (that is 2.9 divided by 100)
  • <em>t</em> is the number of years = 2 years

Next, we input these into the equation as follows:

A = 750(1 + 0.029 x 2)

A = 750(1 + 0.058)

A = 750(1.058)

A = 793.5

Therefore, Susan earns $793.50

7 0
3 years ago
In January 2020, Livingston Publishing sells three-year subscriptions to its annual publication to 500 customers for $30 each. U
Ray Of Light [21]

Answer:

A credit to Deferred subscription revenue for $15,000

Explanation:

6 0
2 years ago
A company paid Jen Rogers, its sole stockholder, a total of $25,000 in dividends during the current year. The entry needed to cl
sergiy2304 [10]

Debit Income Summary and credit Dividends for $25,000.

Answer: Option 5.

<u>Explanation:</u>

The balancing account of the company or an organisation is where the entries of the company are made and recorded so that at then end of the year the financial position of the company becomes clear to the stake holders of the company.

It is a double entry book keeping record where single entry is made on two sides of the book, the debit side and the credit side. This makes the book in balance for every entry. Entry on the debit and the credit side is made with the same amount to maintain the balance.

7 0
3 years ago
How can I start building my credit
vodka [1.7K]

Answer:

Use a credit card and pay off something each month.

For example, a spotify membership with a student discount is $5 a month, these monthly payments will help increase your credit.

Explanation:

4 0
3 years ago
A stock has an expected return of 12.2 percent, the risk-free rate is 6 percent, and the market risk premium is 10 percent. What
matrenka [14]

Answer:

Beta  = 0.62

Explanation:

<em>The capital pricing model establishes the relationship between expected return from a stock and its systematic  risk . The systematic risk is that which affects all players (businesses and firms) in the entire market, such risks are occassioned by changes in interest rate, exchange rate e.t.c</em>

<em>According to the model , the expected return is computed as follows</em>

E(r)   = Rf  + β(Rm-Rf)

Rf- risk -free rate, Rm-Rf - market premium

  E(r)     = 12.2%,  Rm-Rf  = 10,  β- ?

12.2 = 6%  + β× 10

10β = 12.2 -6

β=  (12.2-6)/10

     = 0.62

3 0
3 years ago
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