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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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The Baldrige Award aims to: (I) publicize successful quality programs. (II) recognize quality achievements of U.S. companies. (I
CaHeK987 [17]

Answer: The Baldrige award aims to publicize successful quality programs, recognize quality achievements of United States companies and stimulate efforts to improve quality. (Option C)

Explanation:

The Malcolm Baldrige National Quality Award is an award that is given to United States organizations in several sectors such as manufacturing, education, services healthcare, business and non profit organizations that have performed exceptionally well. The award recognize companies for excellent performances. It is the only formal recognition of quality performance of private and public organizations that is given by the United States president.

The Baldrige award's goal is to recognize the quality achievements of organizations in the United States, publicize successful quality programs and enhance efforts to improve quality.

3 0
3 years ago
Determine the order in which the following budgets are generally prepared.
xenn [34]

Answer:

The order in which the following budgets are generally prepared are as arranged below:

1. Sales budget

2. Production budget

3. Material purchases budget

4. Budgeted income statement

In an attempt to expatiate the decision above. We must observe that income statement starts with revenue. Similarly here, the budget will starts with sales. The revenue section is followed by production budget which from which various budgets like material, direct labor and overhead budget are prepared from. After the Production budget, follow the Material purchase budget, then Budgeted Income Statement

5 0
3 years ago
Consider the relative liquidity of the following assets: Assets 1. A $50 bill 2. The funds in a savings account 3. A boat you ow
zheka24 [161]

Answer:

1,2,4,3

Explanation:

Liquidity measures how quickly an asset can be converted and used as a medium of exchange.

$50 bill is the most liquid because it can be readily used as a medium of exchange without any conversion.

The funds in a savings account is the second most liquid because because it must first be withdrawn from a bank account before it can be used as a medium of exchange. It can be converted to a medium of exchange within a day.

A bond issued by a publicly traded company is the third most liquid because it takes a longer period for it to be converted to cash.

A boat is the least liquid because it takes a long while to find a buyer for a boat.

I hope my answer helps you.

4 0
3 years ago
Prepare a classified balance sheet. Assume that $13,600 of the note payable will be paid in 2023.The following items are taken f
Aliun [14]

Answer:

A) See attached file for Balance Sheet

B) Current ratio = 1.26

C) Debt to Asset ratio = 18%

The Current ratio tells us that the company has 1.26 dollars of current assets to cover 1 dollar of current debt. That is a good thing, but to know if it´s enough covers, further information is needed. Others ratios can help to complete the picture as for example, quick ratio, assets turn over, inventory turn over, receivables turn over, etc. The debt to assets ratio. Tells us that the company owes 18% of its assets. The rest belongs to the stockholders. Again, it´s a good thing, but further information can help us to know if the company can invest in new projects, financing it with debt in a profitable way, for example, if Return on Assets is higher than debt rate.

Explanation:

B) Current ratio = Current Assets / Current Liabilities

   Current ratio = 52,140 / 41,400

   Current ratio = 1.26

C)Debt to Asset ratio = (Total Liabilities / Total Assets)*100

   Debt to Asset ratio = (121,400 / 691,400)*100

   Debt to Asset ratio = 18%

The current ratio measures a company's ability to pay short-term obligations or those due within one year, by relating current assets with current liabilities (liquidity ratio). The debt to total assets ratio shows the percentage of a company's total assets that were financed by creditors (financial ratio).  

3 0
3 years ago
Who was the researcher who identified three types of travelers on a continuum
irinina [24]
Stanley Plog was the researcher who identified 3 types of travelers
7 0
3 years ago
Read 2 more answers
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