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Anon25 [30]
3 years ago
5

Which of the following statements regarding financial statement analysis is incorrect? A. The profit margin can be viewed as a m

easure of expense control. B. The two most popular measures of company size are net sales revenue and total assets. C. A profitability ratio provides a comparison of an income measure and a size measure. D. In DuPont analysis we break return on assets down into two other ratios that can be compared to their own industry average benchmarks. E. The current ratio measures a company’s effectiveness in using fixed assets to support sales.
Business
1 answer:
irina1246 [14]3 years ago
3 0

Answer: The current ratio measures a company’s effectiveness in using fixed assets to support sales.

Explanation:

The statement regarding a financial statement analysis that is incorrect is option E "the current ratio measures a company’s effectiveness in using fixed assets to support sales".

The current ratio is used by a company to know if there are enough resources that are available in order to meet the short term obligations of the company.

This is done through the comparison of the current assets of the company to the current liabilities of the company.

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Organizing Select one:
kaheart [24]

Answer:  Option C

Explanation:  Organizing is the administrative role that typically follows after planning, from the point of view of businesses. Organizing includes assigning tasks and assigning authority to accomplish goals and objectives with sufficient accountability and allocating resources throughout the organization.

Organizing includes creating deliberate task structures by defining and listing the tasks necessary to achieve a company's objectives. In simple words,  Organizing is creating successful relationships of power between specified employers, people, and workplaces so that the community can work effectively together. Or the separation of work into branches and divisions.

Thus, from the above we can conclude that the correct option is C .

8 0
3 years ago
Badger corp. declared a stock dividend to all shareholders of record on march 25 of this year. shareholders will receive one sha
Maru [420]
<span>Answer to part a of this question is "The stock dividend is not taxable because it is pro rata to all the shareholders."

</span>Answer to 2nd question is "The new stock is allocated part of the tax basis of the old stock based on relative fair market value.
After the stock dividend, Madison will own 1,100 shares of Badger stock (1,000 + 1,000/10), each with the same fair market value.
Her basis in each <span>share of stock will be $91, computed as (1,000 shares x $100 basis) / 1,100."</span>
3 0
4 years ago
Read 2 more answers
On January 1, 2021, Avondale Lumber adopted the dollar-value LIFO inventory method. The inventory value for its one inventory po
Gelneren [198K]

Answer:

Avondale Lumber

Rebasing the Inventory at year-end using the dollar-value LIFO inventory method:

Year Ended     Inventory year     Cost index                Inventory Amount

December 31   end costs       (relative to base year)     at year-end

2021                  $340,000                  1.02                       $333,333

2022                   350,000                  1.06                       $330,189

2023                   400,000                  1.07                       $373,832

2024                   430,000                  1.10                       $390,909

Explanation:

a) Data:

Year Ended     Inventory year     Cost index

December 31   end costs       (relative to base year)

2021                  $340,000                  1.02

2022                   350,000                  1.06

2023                   400,000                  1.07

2024                   430,000                  1.10

b) The inventory at year-end costs is rebased using the cost index that is relative to the base year, by dividing the inventory costs by the cost index.

7 0
3 years ago
ABC Inc needs to raise $111 million to expand operations. The CFO plans to sell 15-year zero-coupon bonds to fund the project. B
oee [108]

Answer:

$207.06 million

Explanation:

First and foremost, it should be borne in mind that the price of a zero-coupon bond is the present value of its face value since the bond does not pay any coupons over its tenor as shown thus:

PV of bonds=FV/(1+i)^n

PV of bonds=amount required=$111 million

FV=face value=the unknown

i=semiannual yield = 4.2%/2=2.1%

n=number of semiannual periods in 15 years=15*2=30

$111=FV/(1+2.1%)^30

FV=$111*(1+2.1%)^30

FV=$207.06 million

7 0
3 years ago
A pizza delivery worker purchased a used motor scooter that had been driven 12100 miles. He drives the motor scooter only on day
stira [4]
I think the answer is D
4 0
3 years ago
Read 2 more answers
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