Dimitri Company has prepared draft financial results now being reviewed by the accountants. You notice that the financial leverage percentage is negative. You also note that the current ratio is 2.4 and the quick ratio is 3.7. You remember that these financial relationships are unusual. Does either imply that a mistake has been made? Explain.
Answer to relevant QuestionsWhy are the notes to the financial statements important to decision makers? Consider the following two independent situations: 1. A manufacturer reported an inventory turnover ratio of 8.6 during 2013. During 2014, management introduced a new inventory control system that was expected to reduce ...Morksen Corp. has enjoyed modest success in penetrating the personal electronic devices market since it began operations a few years ago. A new line of devices introduced recently has been well received by customers. ...Refer to the financial statements of Canadian Tire Corporation given in Appendix A of this book. From the list of ratios that were discussed in this chapter, select and compute the ratios that will help you evaluate the ...An annual report for Daimler- Chrysler AG (now Daimler AG) includes the statement that “all significant intercompany transactions and balances relating to these majority-owned subsidiaries and variable interests have been ...
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