In general, which of the following statements is correct about different ratios? Group of answer choices...
In general, which of the following statements is correct about different ratios? Group of answer choices Low current ratio is beneficial for hospitality companies so that they can pay their current liabilities. Creditors are interested in low ratios of interest coverage. A firm is called “solvent” when its total liabilities exceed its total assets. A high inventory turnover is desired because it means that the establishment is able to operate with strong sales volume and efficient buying.
Homework Answers
| A high inventory turnover is desired because it means that the establishment is able to operate with strong sales volume and efficient buying. |
| A high inventory turnover indicates that the company is able to sell its inventory very quickly and the product has a strong demand. |
| Low current ratio is not beneficial as it indicates inability to pay their current liabilities. |
| Creditors are interested in high ratios of interest coverage as it indicates company has good earnings to cover interest charges. |
| A firm is insolvent when its total liabilities exceed its total assets. |
| Option D is correct |
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In general, which of the following statements is correct about
different ratios? Group of answer choices...
Correctly answer is part of question 3 Aa Aa 3. Asset management ratios Asset management ratios...
Correctly answer is part of question 3
Aa Aa 3. Asset management ratios Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has invested in a particular type of asset (or group of assets) to the amount of revenues the asset is generating. Examples of asset management ratios include the average collection period (also called the days sales outstanding ratio), the inventory turnover ratio, the fixed asset turnover ratio,...
Ratios are mostly calculated using data drawn from the financial statements of a firm. However, another...
Ratios are mostly calculated using data drawn from the financial statements of a firm. However, another group of ratios, called market-based ratios, relate to a firm’s observable market value, stock prices, and book values, integrating information from both the market and the firm’s financial statements. Consider the case of Green Caterpillar Garden Supplies Inc.: Green Caterpillar Garden Supplies Inc. just reported earnings after tax (also called net income) of $95,000,000, and a current stock price of $28.50 per share. The...
CENGAGE MINDTAP Assignment 03 - Analysis of Financial Statements Which of the following is true about...
CENGAGE MINDTAP Assignment 03 - Analysis of Financial Statements Which of the following is true about the leveraging effect? Interest on debt can be deducted from pre-tax income, resulting in a greater taxable income and a smaller available operating income. Interest on debt is a tax deductible expense, which means that it can reduce a firm's taxable income and tax obligation Red Snail Satellite Company has a total asset turnover ratio of 6.00x, net annual sales of $25 million, and...
3. Asset management ratios Asset management ratios are used to measure how effectively a firm manages...
3. Asset management ratios Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has invested in a particular type of asset (or group of assets) to the amount of revenues the asset is generating. Examples of asset management ratios include the average collection period (also called the days sales outstanding ratio), the inventory turnover ratio, the fixed asset turnover ratio, and the total asset turnover ratio. Consider the following...
LITU. ASSI CI L'Alloy SIS UI Pillalillal slaternells 2. Asset management ratios Asset management ratios are...
LITU. ASSI CI L'Alloy SIS UI Pillalillal slaternells 2. Asset management ratios Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has invested in a particular Lype of asset (or group of assets) to the amount of revenues the asset is generating. Examples of asset management ratios include the average collection period (also called the days sales outstanding ratio), the inventory turnover ratio, the fixed asset turnover ratio, and...
Chapter 4 Assignment 2. Asset management ratios Asset management ratios are used to measure how effectively...
Chapter 4 Assignment 2. Asset management ratios Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has invested in a particular type of asset (or group of assets) to the amount of revenues the asset is generating. Examples of asset management ratios include the average collection period (also called the days sales outstanding ratio), the inventory turnover ratio, the fixed asset turnover ratio, and the total asset turnover ratio....
3. Asset management ratios Aa Aa E Asset management ratios are used to measure how effectively...
3. Asset management ratios Aa Aa E Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has invested in a particular type of asset (or group of assets) to the amount of revenues the asset is generating. Examples of asset management ratios include the average collection period (also called the days sales outstanding ratio), the inventory turnover ratio, the fixed asset turnover ratio, and the total asset turnover ratio....
A2. The following data are extracted from the financial statements of Frozen Limit and Tarzan Limited...
A2. The following data are extracted from the financial statements of Frozen Limit and Tarzan Limited for the year ended 31 March 2019. Closing inventory Trade receivables Total current assets Trade payables Total current liabilities Sales Cost of sales Gross profit Profit before tax Frozen Limited S000 10,300 3.800 16,300 4,600 6.920 62,500 50.100 12.400 4.600 Tarzan Limited S'000 9,500 2,300 13,400 4,500 7,810 58,900 51,300 7,600 1,900 Frozen Limited and Tarzan Limited have a similar size and structure. They...
2. Asset management ratios Asset management ratios are used to measure how effectively a firm manages...
2. Asset management ratios Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has invested in a particular type of asset (or group of assets) to the amount of revenues the asset is generating. Examples of asset management ratios include the average collection pericod (also called the days sales outstanding ratio), the inventory turnover ratio, the fixed asset turnover ratio, and the total asset turnover ratio. Consider the following...
can you please give feed back to this.. like add something or give a comment about...
can you please give feed back to this.. like add something or give a comment about the following posts. 1) Profit Margin = NetincomeSales Profit margin is very useful in analyzing the financial health of the firm because it indicates how much money is generated per every dollar in sales. A higher profit margin means there are low expense ratios relative to sales. In other words, it tells us how a company uses its income. When a company has a...
Correctly answer is part of question 3
Aa Aa 3. Asset management ratios Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has invested in a particular type of asset (or group of assets) to the amount of revenues the asset is generating. Examples of asset management ratios include the average collection period (also called the days sales outstanding ratio), the inventory turnover ratio, the fixed asset turnover ratio,...
CENGAGE MINDTAP Assignment 03 - Analysis of Financial Statements Which of the following is true about the leveraging effect? Interest on debt can be deducted from pre-tax income, resulting in a greater taxable income and a smaller available operating income. Interest on debt is a tax deductible expense, which means that it can reduce a firm's taxable income and tax obligation Red Snail Satellite Company has a total asset turnover ratio of 6.00x, net annual sales of $25 million, and...
LITU. ASSI CI L'Alloy SIS UI Pillalillal slaternells 2. Asset management ratios Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has invested in a particular Lype of asset (or group of assets) to the amount of revenues the asset is generating. Examples of asset management ratios include the average collection period (also called the days sales outstanding ratio), the inventory turnover ratio, the fixed asset turnover ratio, and...
Chapter 4 Assignment 2. Asset management ratios Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has invested in a particular type of asset (or group of assets) to the amount of revenues the asset is generating. Examples of asset management ratios include the average collection period (also called the days sales outstanding ratio), the inventory turnover ratio, the fixed asset turnover ratio, and the total asset turnover ratio....
3. Asset management ratios Aa Aa E Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has invested in a particular type of asset (or group of assets) to the amount of revenues the asset is generating. Examples of asset management ratios include the average collection period (also called the days sales outstanding ratio), the inventory turnover ratio, the fixed asset turnover ratio, and the total asset turnover ratio....
A2. The following data are extracted from the financial statements of Frozen Limit and Tarzan Limited for the year ended 31 March 2019. Closing inventory Trade receivables Total current assets Trade payables Total current liabilities Sales Cost of sales Gross profit Profit before tax Frozen Limited S000 10,300 3.800 16,300 4,600 6.920 62,500 50.100 12.400 4.600 Tarzan Limited S'000 9,500 2,300 13,400 4,500 7,810 58,900 51,300 7,600 1,900 Frozen Limited and Tarzan Limited have a similar size and structure. They...
2. Asset management ratios Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has invested in a particular type of asset (or group of assets) to the amount of revenues the asset is generating. Examples of asset management ratios include the average collection pericod (also called the days sales outstanding ratio), the inventory turnover ratio, the fixed asset turnover ratio, and the total asset turnover ratio. Consider the following...
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