Question

Question 27 3 pt Zebra Company reports the following figures for the years ending December 31, 2019 and 2018: 2019 2018 Net Sales $61,000 $46,000 Cost of Goods Sold 44.000 33.000 Gross Profit $17,000 $13,000 What are the percentage changes from 2018 to 2019 for Net Sales, Cost of Goods Sold and Gross Profit, respectively? (Round your final answers to one decimal place, X.X%) 32.6%, 33.3%, 30.8% 100%, 30.8%, 33.3% 100%, 0.8%, 0.8% 30.8%. 32.6% 33.3% Question 28 3 pts Hull Company reports the following data

Answer 1

Solution 27. X100) % Change- Difference (Diff/2018 2018 2019-2018 46000 15000 32.6% 33000 11000 33.3% 13000 4000 30.8% 2019 61000 44000 17000 Net Sales Cost of Goods sold Gross Profit Thus Option-1: 32.6%, 33.3%, 30.8% is the correct answer Solution 28. Total Operating Expenses to Net Sales is the ratio between Operating expense and the Turnover for the year. Higher the expenses, higher will be the ratio. However, if Sales also increases with the same rate as of Expense, then there would be not Impact on the ratio. Option -3: The Company is loosing cntrol of Operating expenses is the correct answer. Solution 29. Accounts receivable Turnover Ratio is the ratio of Credit sales to Average Receivables Higher the Accounts Rec Turnover ratio, higher the Collections made. Thus a higher Accounts Receivable turnover ratio is preffered. American future Co is having Accounts Rec turnover ratio-20, Industry's Accounts rec-10 Thus, Option 3- "American Furniture Company collects accounts receivable faster than the Industry average." is the correct answer. Solution 30. Du Pont analysis, Leverage ratio done to compute the finnancial impact on the company. Option -2: The impact of leveragae on Company's financial position is the correct answer. Solution 31. 1 Debts to Assets ratio is a liquidity ratio 2 Dividend Yield is Stock market ratio 3 Net Margiin ratio is Profitabilty ratio 4 Current Ratio is Liquidity ratio FALSE TRUE TRUE TRUE Liquidity ratios are the ratio representing Company's ability to pay quick debts. Thus, Option 1- Debts to assets ratio is a Liquidity Ratio is Correct Option

Solution 32 The correct Option will be: Option 1-There is Too much debt As it is risky to Invest in a company having huge Debts Solution 33. A/R Turnover ratio and Inventory Turnover ratio are falling, while Fixed aseets turnover ratio is increasing. The fall in ratio is not favorable for the company. Thus, Option-4: The company's A/R and Inventory turnover ratios are decreasing and this is an unfavourable trend for these two ratios. Is the correct answer.

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