All categories

3 years ago

When you are interpreting financial ratios, it is useful to compare a company's ratios to some form of standard. true?

1 answer:

5 0

The statement is true. A financial ratio or also known as the accounting ratio is a relative size of two chose numerical esteems taken from a venture's monetary articulations. Regularly utilized as a part of bookkeeping, there are numerous standard proportions used to endeavor to assess the general monetary state of a partnership or other association.

You might be interested in

Griffin's Goat Farm, Inc., has sales of $796,000, costs of $327,000, depreciation expense of $42,000, interest expense of $34,00

worty [1.4K]

Answer:

A. Earning Per Share = $3.88 per Share

B. Dividend per Share = $1.99 per Share

Explanation:

Step 1: Calculate the Net Income Before Tax

Sales= $796,000, Cost= $327,000, Depreciation = $42,000, Interest = $34,000

Net Income Before Tax= Income for the period - Expenses

Net Income Before Tax= Sales- Costs- Depreciation- Interest

= $796,000-$327,000-$42,000-#34,000

=$393,000

Step 2: Calculate the Net Income After tax

Net Income After Tax = Net Income Before Tax - Tax for the period

Percentage for Tax (tax rate) = 21%

Tax for the Period = $393,000 x 21%

= $82,530

Net Income After Tax = $393,000- $82, 530

= $310,470

Step 3: Calculate Earnings Per Share

Number of Outstanding Shares = 80,000 Shares

Dividend paid = $95,000

Earnings Per Share = Net Income After Tax/ Number of Shares

= $310,470/80,000

=3.880875 Per Share (intermediate calculations not rounded)

=$3.88 Per Share (rounded to 2 decimal places)

Step 4: Calculate Dividends Per Share

Dividend Per Share = Cash Dividend Paid/ Number of Shares

= $95,000/80,000

=$1.1875 (intermediate calculations not rounded)

=$1.19 Per Share (rounded to 2 decimal places)

6 0

3 years ago

g 2. Problems and Applications Q2 Indicate whether each of the following transactions represents an increase in net exports, a d

Scrat [10]

Answer and Explanation:

a. Since an american buys a sony tv so it would decrease the net exports as we know that net exports would be determined by deducting the imports from exports. Here the sony is an import so if an import is increase the net export would decrease

b. As the american purchase a sony stock share so it would increase the net capital outlow as the financial asset and stock would be shown in the capital account. as the money is given to sony so it would increase the net capital outflow

c. Sine the Japanese car would build a factory in Ohio so it decrease the net capital outflow as it is an imported good

d. As German citizen purchase an apple computer so it would rise the net exports as export would increase

6 0

3 years ago

A hurricane hits the coast of the United States, destroying oyster farms. Afterward,

Free_Kalibri [48]

Answer: C. Scarcity

The situation is an example of scarcity.

5 0

2 years ago

Read 2 more answers

Timothy was tasked with creating the budget for the next fiscal year. He had to create a cost-profit analysis report of all the

nlexa [21]

The position held by Timothy within his company is FINANCE MANAGER because in summary, his duty was to produce financial reports (he had to create a cost-profit analysis report of all the current product lines of the company), direct investment activities (he was tasked with creating the budget for the next fiscal year), and develop strategies and plans for the long-term financial goals of their organization (He also had to identify avenues for possible cost reduction in the budget).

3 0

3 years ago

A down payment deposit from a potential buyer must be held in: Group of answer choices The seller's bank account The salesperson

Andreyy89

Answer:

The explanation and solution of this question is given below in explanation section.

Explanation:

The correct option of this question is :

The broker’s escrow trust account.

This method mostly used in freelancing. Upwork is one of the freelancing websites. It uses escrow trust account where potential buyer deposit the down payment and this deposit payment will be released to a potential client as he completes the contract with the buyer.

Why other options are not correct.

The amount does not directly deposited in the seller's bank account. because it is chances that the seller either will not work or complete the work and take the money away.

A salesperson bank account is also an incorrect option.

4 0

3 years ago