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stiv31 [10]
2 years ago
8

1. What kind of financial information is a publicly traded company required to provide to its stockholders? Which financial stat

ement do you think provides the best information for investors? 2. (a) Discuss some of the limitations associated with performing ratio (financial statement) analysis. (b) What is the most important ingredient (input) in completing ratio analysis and why? 3. Crooked Golf's most recent income statement shows that net income was $90,000, depreciation was $25,000 and taxes were $60,000. What was Crooked Golf's net cash flow? For this particular question and other problem related questions, YOU MUST show the formula/process that led to the answer/solution. Writing down the answer/solution without a credible process/formula is unacceptable. This is a required practice in a finance course. Please note.
Business
1 answer:
qwelly [4]2 years ago
4 0

Answer:

1. For a public traded company it is required to share its complete set of Financial Statements which include Balance sheet, Profit or loss statement, Cash flow statement, statement of changes in equity and notes to the accounts. For investors the best information comes from Profit or Loss statement because majority of investors are concerned with the profitability of the company which ultimately results in dividend.

2. a. The ratios analysis have some limitations, the ratios are generally compared with past year ratios which neglects the business/ Industry environment and if the ratios are compared with industry norms, past performance of the company is neglected.

b. Profitability ratios are the most important and that is why they are calculated first.

3. Net Cash flow for Crooked Golf is $30,000

Explanation:

1. For a public traded company it is required to share its complete set of Financial Statements which include Balance sheet, Profit or loss statement, Cash flow statement, statement of changes in equity and notes to the accounts. For investors the best information comes from Profit or Loss statement because majority of investors are concerned with the profitability of the company which ultimately results in dividend.

2. a. The ratios analysis have some limitations, the ratios are generally compared with past year ratios which neglects the business/ Industry environment and if the ratios are compared with industry norms, past performance of the company is neglected.

b. Profitability ratios are the most important and that is why they are calculated first.

3. Net Csh flow for Crooked Golf is $30,000.

Calculated as follow,

$90,000 - $60,000

Depreciation is non Cash flow.

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Rajan Company's most recent balance sheet reported total assets of $2.10 million, total liabilities of $0.70 million, and total
andrew11 [14]

Answer:

0.5.

Explanation:

Assets - Liabilities = Owner's Equity.

As the name states, the debt to equity ratio is simply obtained by dividing total debt (liabilities) by the total equity, total assets should not be included:

DER = \frac{0.70}{1.40} =0.5

Rajan Company's  debt to equity ratio is 0.5.

4 0
3 years ago
Explain how and why governments may want to regulate the price setting of a natural monopoly.
Lilit [14]
The government wants to protect the consumer's interest, that is why they are regulating the monopoly. Monopolies have the power to set higher prices than the competitive market. They regulate monopolies to prevent excess prices, quality of service( to ensure the firm receives minimum standard of service), monopoly power,promote competition, and natural monopolies( we cannot encourage competition, and it is essential to regulate firm to prevent monopoly of power). <span />
8 0
3 years ago
Arn.hawkeslearning.com/portal/test/testtaketesti 00:28:59 question 23 of 29 step 1 of 2 mary ann has recently inherited $5100. w
Irina18 [472]

Mary Ann will prefer Account 1

The use of "Compounding interest rate," which involves adding interest to the deposit's principal amount, is the main topic of discussion here.

Mary Ann's balance from account 2 over 3.7 years is $6,261.37

The below calculation is to derive maturity and value when an annual rate of 5.5% is applied.

Principal = $5,100

Annual rate = 5.5% semi-annually for 1 years

A = P(1+r/m)^n*t where n=1, t=2

A = 5,400*(1 + 0.031/2)^1*2

A = 5,400*(1.0155)^2

A = 5,400*1.03124025

A = 5568.69735

A = $5,568.70.

In conclusion, the accrued value she will get years one year for this account is $5,568.70,

When the amount compounds continuously at a rate of 3.4% per year, the maturity value is determined by the calculation below.

Principal = $5,400

Annual rate = 3.4% continuously

A = P.e^rt where n=1

A = 5,400 * e^(0.04*1)

A = 5,400 * 1.04081077419

A = 5620.378180626

A = $5,620.39.

In conclusion, the accrued value she will greater one year for this account is $5,620.39.

Referring to how much would Mary Ann's balance be from Account 2 over 3.7 years. It is calculated as follows:

Annual rate = 3.4% continuously

A = P.e^rt where n=3.7

A = 5,400 * e^(0.04*3.7)

A = 5,400 * e^0.148

A = 5,400 * 1.15951289636

A = 6261.369640344

A = $6,261.37

Therefore, the accrued value she will get after 3.7 years for this account is $6,261.37

Learn more about the Annual rate here

brainly.com/question/14170671

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3 0
2 years ago
Which of the following describes a circumstance in which a large, multinational indirect exporter would be better than a smaller
Nataly [62]

Answer:

A. A large, well-established company wants to get its products into several markets at once.

Explanation:

A multinational indirect exporter is ideal to reach foreign markets with a low level of risk as they already have contacts that might help with the distribution and logistics.

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A decline in the real GDP that occurs for at least two or more quarters is called a _______. a. recession c. recovery b. depress
vagabundo [1.1K]
A decline in the real GDP that occurs for at least two or more quarters is called a depression. The correct option among all the options that are given in the question is option "b". There is a very thin line of difference between recession and depression. when the real GDP falls for a repeated number of periods, then it is depression.
6 0
3 years ago
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