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4 years ago

Select the correct option(s):

1 answer:

6 0

Answer: a. The common-size balance sheet allow for comparison of firms with different levels of total assets by introducing a common denominator.

Explanation: The common-size balance sheets are those balance sheets in which the structure of each part of the assets, liabilities and equity major categories are detailed, each one with their absolute value (the amount) and their relative value (percentage of the total).

For example, assets are 5 million dollars, capital 3 million and liabilities 2 million. Cash is 1 million. So in the common-size balance sheet you will see Cash (or liquidity) for 1 million dollars and 20%.

This way you can compare two or more firms with different ammount of assets (one with 8 million with one of just 1 million, for example) as indicating which is the percentage of liquidity for each one, or their percetage of liabilities, etc. The relative value, which is made in the common-size balance sheets makes this comparisson possible.

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Answer:

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3 years ago

The first three activities of the human resource management (hrm) process are about ________

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3 years ago

An economy has the following money demand function: (M/P)d = (1/3)Y/i. Suppose the announcement of a new head of the central ban

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Answer:

r - 2%

Explanation:

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Nominal Interest rate = real interest rate + expected inflation rate

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therefore,

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3 years ago

An analyst gathered the following information about a company: 01/01/04 - 50,000 shares issued and outstanding at the beginning

Ray Of Light [21]

Answer:

Company A

The company's weighted average number of shares outstanding at the end of 2004 is:

= 53,188 shares.

Explanation:

a) Data and Calculations:

Date Description Weight Weighted Average

01/01/04 - 50,000 shares issued

and outstanding 12/12 = 50,000

04/01/04 - 5% stock dividend (2,500) 9/12 = 1,875

10/01/04 - 10% stock dividend (5,250) 3/12 = 1,313

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3 years ago

Peyton's Palace has net income of $13.4 million on sales revenue of $114 million. Total assets were $80 million at the beginning

Romashka [77]

Answer:

Return on Assets = 159.52%

Profit Margin = 11.75%

Asset Turnover Ratio = 1.36 times

Explanation:

The computation of return on assets, profit margin, and asset turnover ratios is shown below:-

a. Return on assets

Average Total Assets = Assets in the beginning + Assets at the end ÷ 2

= ($80 million + $88 million) ÷ 2

= $168 ÷ 2

= $84 million

Return on Assets = Annual Net Income ÷ Average Total assets

= $13.4 million ÷ $84 million

= $159.52 million

b. Profit Margin

Profit Margin = Net Income ÷ Net Sales

= $13.4 million ÷ $114 million

= 11.75%

c. Assets turnover ratio

Average Total Assets = Assets in the beginning + Assets at the end ÷ 2

= ($80 million + $88 million) ÷ 2

= $168 ÷ 2

= $84 million

Asset Turnover Ratio = Net Sales ÷ Average Total assets

= $114 million ÷ $84 million

= 1.36 times

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3 years ago