For each ratio listed, identify whether the change in ratio value from 2012 to 2013 is usually
Question:
Ratio Ratio 2013 9% 47% 2012 8% 42% 2013 2012 . Profit margin 2. Debt ratio 3, Gross margin 34% 46% 7, Inventory turnover 4. Acid-test ratio 1.00 15 8. Dividend yield 5. Accounts receivable turnover 5.5 6.7 $1.25 $.10 3.6 3.4 2.0% 1.2% 6, Basic earnings per share
Step by Step Answer:
Ratio 2013 2012 Change 1 Profit Margin Ratio 9 8 Favorable 2 Debt R...View the full answer
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
Related Video
Inventory turnover is a key metric that helps businesses evaluate the efficiency of their operations. A high turnover ratio is generally considered positive, indicating that the company is effectively selling its inventory and making efficient use of its resources. On the other hand, a low turnover ratio may indicate issues such as overstocking or slow sales and may require further examination to identify and address the underlying causes. Businesses use this ratio to make decisions about inventory levels, production schedules, and pricing strategies. It also helps businesses to identify areas where they may need to make improvements, such as reducing lead times for production or optimizing sales and marketing efforts. Additionally, inventory turnover is used by investors and analysts as a key performance indicator to evaluate the financial health and growth potential of a company.
Students also viewed these Managerial Accounting questions
-
From the following list, identify whether the change in the account balance during the year is added to (A) or deducted from (D) net income when the indirect method is used to determine cash flows...
-
For each region, assess whether the change in corneal sensitivity varies by treatment received comparing day 7 vs. day 0 and day 14 vs. day 0, respectively. Use all available data from all 93...
-
The change in the value of a portfolio in three months is normally distributed with a mean of $500,000 and a standard deviation of $3 million. Calculate the VaR and ES for a confidence level of 99.5%...
-
Consider the utility function U(x 1 , x 2 ) = x 1 x 2 with budget constraint p 1 x 1 + p 2 x 2 = c. (a) Show that the maximum of U(x 1 , x 2 ) subject to the budget constraint is equal to c 2 /(4p 1...
-
Consider a linear probability model for whether employers offer a pension plan based on the percentage of workers belonging to a union, as well as other factors: pension = 0 + 1percunion + 2avgage +...
-
Pool Corporation is authorized to issue an unlimited number of common shares and 1 , 0 0 0 , 0 0 0 shares of preferred shares. During 2 0 2 3 , its first year of operation, the company had net income...
-
Great Western Bank has offered a special certificate of deposit (CD) tied to the S\&P 500. Funds are deposited into the account at the beginning of a month and are held in the account for 3 years....
-
Recall that in exercise 40 the personnel director for Electronics Associates developed the following estimated regression equation relating an employees score on a job satisfaction test to length of...
-
Tanner-UNF Corporation acquired as an investment $240 million of 5% bonds, dated July 1, on July 1, 2024. Company management is holding the bonds in its trading portfolio. The market interest rate...
-
To test the effectiveness of a job training program on the subsequent wages of workers, we specify the model log(wage) - (0 + (1 Strain + (2 educ + (3 exper + u, where train is a binary variable...
-
Compute the annual dollar changes and percent changes for each of the followingaccounts. 2013 2012 Short-term investments $374.634 $234.000 Accounts receivable..97,364 IO1,000 Notes payable .. 0...
-
Financial information for KTM Corporation (www.KTM.com) follows: Net income (in thousands) . . . . . . . . . . . . . . . . . . . . . . . . . 20,818 Cash dividends declared (in thousands) . . . . . ....
-
Every 4 years the world's 32 best national soccer teams compete for the World Cup. Run by FIFA (Fdration Internationale de Football Association), national teams are placed into eight groups of four...
-
Is it possible for the criminal law to define the crime of obscenity precisely enough to avoid the vice of vagueness or the problem of overbreadth?
-
Give an example of a law that would be constitutional per se, and point out how such a law may be unconstitutional in its application to a specific conduct.
-
How does the crime of burglary as it is typically defined under modern statutes differ from the definition of this offense under English common law?
-
How does the doctrine of judicial review affect the power of a state legislature to define criminal conduct? Would the constitutional limitations on legislative power be as stringent without the...
-
Is it a crime to share digital music files with a friend if there is no commercial purpose or monetary gain in doing so?
-
Supply the IUPAC systematic name for each of the following binary acids. (a) HF(aq) (b) HI(aq).
-
Subprime loans have higher loss rates than many other types of loans. Explain why lenders offer subprime loans. Describe the characteristics of the typical borrower in a subprime consumer loan.
-
Consider the economy described in Problem 4. a. Use the prices for 2009 as the set of common prices to compute real GDP in 2009 and in 2010. Compute the GDP deflator for 2009 and for 2010, and...
-
What is the difference between the cash basis and the accrual basis of accounting?
-
What is the purpose of the Income Summary account?
-
What is the difference between the single-step and multiple-step income statement formats?
-
What is Data Flow Diagram? Explain the Steps ti draw data flow diagram?
-
What is the purpose of data flow diagrams? Do data flow diagrams show system logic and decision points? Explain.
-
Online Shopping of clothes. Please solve the following part: Logical Model Design .. 1.0 Data Flow Diagram.. 1.1 Context Diagram.. 1.2 Level 0 Data Flow Diagram.. 1.3 Level 1 Data Flow Diagram.. 1.4...
Study smarter with the SolutionInn App