Do you think that Macy’s or Wal-Mart has the higher inventory turnover ratio? Why? Which company do you think has the higher gross margin ratio? Why? (Find these firms’ financial statements on the Internet and see if you are correct.)
Answer to relevant QuestionsThink about the risks of investing in a company and about the information provided by the financial ratios you studied in this chapter. Which financial ratios do you believe might give you information about the risks of ...Kinsey Scales invested $ 164,000 of its extra cash in securities. Under each of the following independent scenarios, (a) calculate the amount at which the investments would be valued for the year- end balance sheet, and (b) ...How might a firm misuse the statement of cash flows to give investors a better impression of the firm’s operations?During 2011, Mail Direct, Inc., incurred salary expense of $67,500, as shown on the income statement. The January 1, 2011, balance sheet showed salaries payable of $10,450; and the December 31, 2011, balance sheet showed ...Havelen’s Road Paving Company had depreciation expense of $43,000 on the income statement for the year. How would this expense be shown on the statement of cash flows prepared using the indirect method? Why?
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