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34kurt
2 years ago
7

The calculations for some profitability ratios are the same as the calculations for common-size analysis of the income statement

. Which of the following profitability ratios would also be determined through a common-size analysis of the income statement?
a. Acid-test ratio
b. Debt-to-equity ratio
c. Earnings per share
d. Gross profit ratio
Business
1 answer:
Lelechka [254]2 years ago
8 0

Answer:

d. Gross profit ratio

Explanation:

In the case of common size income statement analysis, the each and every item display in the income statement should be recognized as the percentage of sales

Also the formula of gross profit is

= Gross profit ÷ Sales

Therefore the option d is correct

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MATCH EACH TERM WITH EACH DEFINITION
aliya0001 [1]

Answer:

grace period = 2

credit report= 4

secured card = 3

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8 0
2 years ago
Sara’s Salsa Company produces its condiments in two types: Extra Fine for restaurant customers and Family Style for home use. Sa
Len [333]

Answer:

1.$4.29 per cases

2. Extra Fine $14.29

Family Style $13.29

3a. Extra Fine $4.71

Family Style $0.29

3b. What might the management conclude about the Family Style Salsa product line is that Family Style salsa are not yielding profit which may may inturn make make the company to stop the production of the product in a situation where either the cost are not reduced or where the price.

Explanation:

1. Computation for the overhead cost that is assigned to each case of Extra Fine Salsa and each case of Family Style Salsa using Plantwide overhead rate

Using this formula

Overhead cost=Total overhead cost/Total volume

Let plug in the formula

First step is to calculate the Total overhead cost

Total overhead cost = $130,800 + $349,000 +$206,000

Total overhead cost =$685,800

Second step is to calculate the Total volume

Total volume= 35,000 + 125,000 cases

Total volume=160,000 cases

Now let calculate the Overhead cost

Overhead cost=$685,800/160,000 cases

Overhead cost=$4.29 per cases (rounded)

Therefore since we are making use of plantwide rate which means that same overhead cost of the amount of $4.29 per cases will be assigned to each of the two case .

2. Calculation to determine the total cost per case for the two products

Extra Fine Family Style

Direct materials + Direct Labor $ 10.00 $ 9.00

Add Overhead $4.29 $4.29

Manufacturing cost per case $ 14.29 $ 13.39

Therefore the the total cost per case for the two products will be:

Extra Fine $14.29

Family Style $13.29

3-A Calculation to determine the gross profit per case for each product.

Extra Fine Family Style

Selling price per case $ 19.00 $ 13.00

Less Manufacturing cost per case $14.29 $13.29

Gross profit (loss) per case $ 4.71. $ (0.29 )

Therefore the gross profit per case for each product will be ;

Extra Fine $4.71

Family Style $0.29

3-b. Based on the above Calculation What might the management conclude about the Family Style Salsa product line is that Family Style salsa are not yielding profit which may may inturn make make the company to stop the production of the product in a situation where either the cost are not reduced or where the price.

3 0
3 years ago
The cost of meeting SEC and possibly additional state reporting requirements regarding disclosure of financial information, the
Rama09 [41]

Answer:

True.

Explanation:

Danger of losing control, and the possibility of an inactive market and an attendant low stock price are potential disadvantages of going public.

Companies that seeks to sell its stock on different stock markets or other major public exchanges must meet and maintain numerous listing requirements. Failure to comply with these mandates on an ongoing basis could cause the stock to become delisted from the exchange. The chief purpose of these requirements is to increase market transparency in an effort to foster investor confidence.

8 0
3 years ago
Read 2 more answers
A data analyst at a construction company is working on a report for a quickly approaching deadline. Why might they choose to ana
damaskus [11]

A data analyst of a construction company chooses to analyze the historical data as the construction project is for a very short time period.

<h3>What is a construction company?</h3>

A construction company is an entity that takes on construction projects of making buildings, towers, bridges, flyovers, etc.

When the construction project is for a short duration, then the data analyst decides to analyze the historical data, that is, the data that is based on past figures and has not been affected by any market fluctuations. It helps the data analyst to make a report in a quick manner without any kind of further delay.

Therefore, the historical data can be studied by a data analyst where the construction project is completed in a short span of time.

Learn more about the data analyst in the related link:

brainly.com/question/26253705

#SPJ1

8 0
2 years ago
Dudley Savings Bank wishes to take a position in Treasury bond futures contracts, which currently have a quote of 110 − 100. Dud
Aneli [31]

Answer:

a. Long

b. $375.00

Explanation:

a. If interest rates decrease over the period of investment, Treasury bond prices will increase. Thus, Dudley Savings Bank should take a long position in the futures contracts on the Treasury bonds. As T-bond prices go up, so will T-bond futures prices.

b. Given a long position:

Net profit = Sale price of futures − Purchase price of futures

= $107,687.50 − $107,312.50 = $375.00

Purchase price of futures = 107 − 100 = 107 10/32% × $100,000 = $107,312.50

Sale price of futures = 107 − 220 = 107 22/32% × $100,000 = $107,687.50

Explanation:

3 0
2 years ago
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