Question

Trestone, a guitar manufacturing company, produces a thousand units of electric guitars each year. The company has been able to sell all its guitars by the end of the fiscal year and earn twice the amount spent on production and marketing. The given scenario indicates that Trestone most likely analyzes _____ for its financial planning.

Answer 1

Answer:

probibility ratios

Explanation:

Answer 2

Answer:

Profitability ratios

Explanation:

Profitability ratios are measurements that allow to evaluate the performance of the company and determine if it is able to generate benefits and value for the stockholders from the assets it has. When a company has a high ratio, it means that it has a good financial conditions and is having profits. According to this, the answer is that the given scenario indicates that Trestone most likely analyzes profitability ratios for its financial planning as it was able to determine that the company earned twice the amount spent on production and marketing.