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3 years ago

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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At the end of the year, Dahir Incorporated’s balance of Allowance for Uncollectible Accounts is $2,400 (credit) before adjustmen

mafiozo [28]

Answer:

The adjustment Dahir would record for Allowance for Uncollectible Accounts:

Debit Bad debts expense $9,600

Credit Allowance for Doubtful Accounts $9,600

Explanation:

At the end of the year, before adjustment, Dahir Incorporated’s balance of Allowance for Uncollectible Accounts is $2,400 (credit).

The company estimates uncollectible accounts to be $12,000

Bad debts expense = $12,000 - $2,400 = $9,600

The adjustment to record Allowance for Uncollectible Accounts:

Debit Bad debts expense $9,600

Credit Allowance for Doubtful Accounts $9,600

8 0

3 years ago

Based on the spreadsheet below, what is the net cash flow? A 2-column spreadsheet showing Cash Inflows and Cash Outflows. Total

Vadim26 [7]

The net cash flow is <u>A. $290.</u>

The net cash flow is the difference between the cash inflows and the cash outflows. It can be positive or negative. When the cash inflows are greater than the cash outflows, the net cash flow is positive. The opposite is the case when the cash outflows exceed the cash inflows.

<h3>Data and Calculations:</h3>

Total Cash Inflows = $2,040
Total Cash outflows = $1,750
Net cash flows = $290 ($2,040 - $1,750)

Thus, the net cash flow based on the spreadsheet is <u>A. $290.</u>

Learn more about the net cash flow here: brainly.com/question/4326360

6 0

2 years ago

15. If, in the economy described, government spending increases by $200 million, what will be the associated change in equilibri

iris [78.8K]

Answer:

$200 (million)

Explanation:

If the government spending increases by $200 million, then associated change in equilibrium income will be $ 200 million, assuming that Marginal Propensity to Consume (MPC) is 1

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3 years ago

EZ Electronics Inc., Neo Digital Inc., and Techno Products Corp. are all companies that manufacture and sell consumer electronic

VikaD [51]

Answer is Industry

Explanation:

An industry is a group of companies whose primary business activities like production, marketing, procurement and product design are related. In order words, an industry is a group of companies that sells related goods and services to satisfy similar customer needs in a particular economy.

Since EZ Electronics Inc., Neo Digital Inc., and Techno Products Corp., are all grouped as manufacturers and sellers of consumer electronics, it describes their similarities, of which their relative attractiveness or consumer preference can be compared with each other. Therefore, they are a part of an industry.

8 0

3 years ago

Which resource management activity identifies and verifies that personnel are qualified.

Naddika [18.5K]

Credentialing resource management activity identifies and verifies that personnel is qualified.

<h3>What is management?</h3>

Management (or managing) is the process of overseeing the operations of a company, nonprofit, or governmental entity.
It is both the science and the art of managing a company's resources.
Setting an organization's strategy and managing employee (or volunteer) efforts to achieve goals through the use of available resources, such as financial, natural, technological, and human resources, are included in management.

<h3>What roles does management play?</h3>

Planning, organizing, staffing, leading, and managing are the five general responsibilities that make up management at its most basic level.
These five responsibilities are a part of a corpus of guidelines and management-related beliefs.

Learn more about management here:

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4 0

2 years ago