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Bas_tet [7]
3 years ago
6

What types of questions can be answered by analzying financial statements?

Business
2 answers:
NARA [144]3 years ago
6 0
- Would an investment generate attractive returns?
- What is the degree of risk inherent in the investment?
- Should existing investment holdings be liquidated?
- Will cash flows be sufficient to service interest and principal payments to support the firm's borrowing needs?
- Does the company provide a good opportunity for employment, future advancement, and employee benefits?
 - How well does this company compete in its operating environment?
- <span>Is this firm a good prospect as a customer?</span>
sattari [20]3 years ago
6 0
If indeed the books are straight forward, you may learn the general health of the business itself by analyzing the growth patterns.  Of course the in the "black" and in the "red" is a clear indication of the finanacial health.  Areas of concern can be discovered by preparation of a 'bottom line' or to learn exactly how much cash is flowing, not how much is only on paper.  Breaking down the books involves a detailed analysis of each category to eventullay learn the net worth of a venture.  After examining the books, compare them to the actual tax returns for at least 5 years prior.  Examine the companies internal auditor's reports but do so with a jaundiced eye since the person preparing those books may have been influenced a tiny bit when they recieved their pay check.  An auditor's background and reputation should be taken into consideration.  Ask to see more than the actual company books, ask for the original documents that were generated during large transactions and don't be put off by a non-disclosure agreement.  
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ipn [44]
<span>1 candy cost 1 2 candies cost 1+.50=1.50 ( here D is not an integer, hence we cannot buy 2 candies . so we can reject all cases where D is non Integer) 3 candies cost 1.50 +1 =2.50 4 candies cost 2.50+.50= 3 5 candies cost 3+1= 4 6 candies cost 4+.50= 4.50 7 candies cost 4.50+1=5.50 8 candies cost 5.50.+.50= 6 9 candies cost 6+1= 7 ..... 13 candies cost =10 (i) D is prime D=3 and N=4 (N is even) D=7 N=9 (N is odd ) not sufficient (ii) D is not Divisible by 3 D=1 N=1 D=4 N =5 D=7 N=9 D=10 N=13 so we see if D is not divisible 3 then N is always odd.</span>
6 0
3 years ago
Which of the following statements concerning the cash budget is CORRECT? a. Depreciation expense is not explicitly included, but
Ostrovityanka [42]

Answer:

a. Depreciation expense is not explicitly included, but depreciation's effects are reflected in the estimated tax payments.

Explanation:

The cash budget is the budget that represents the receipts and payment of transactions held in cash

It includes the interest and dividend payment as it shows the outflow of cash if payment is made in cash

Moreover, it also affects the DSO and includes cash inflows with related to the long term sources such as issuance of bonds

But as we know that the depreciation is a non cash expense so it not much included but its effects are projected in the payment of tax

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3 years ago
Given the acquisition cost of product ALPHA is $20, the net realizable value for product ALPHA is $17, the normal profit for pro
Anna [14]

Answer:

LCM = $15.5

Explanation:

RC = $14

Ceiling: NRV = $17

Floor: NRV – PM

Net realizable value for product ALPHA -Normal profit for product ALPHA

= $17 – $1.50= $15.5

Market= $15.5

LCM = $15.5

Therefore the proper per unit inventory value for product ALPHA applying LCM will be $15.5

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Most likely not but its a nice thing to do.
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4. Analyze. What is wrong with this statement:
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