Holding all other factors constant, indicate whether each of the following changes generally signals good or bad
Question:
(a) Increase in profit margin.
(b) Decrease in inventory turnover.
(c) Increase in the current ratio.
(d) Decrease in earnings per share.
(e) Increase in price-earnings ratio.
(f) Increase in debt to total assets ratio.
(g) Decrease in times interest earned.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 83% (12 reviews)
a The increase in profit margin is good news because it means that a greater percentage of net sales ...View the full answer
Answered By
PALASH JHANWAR
I am a Chartered Accountant with AIR 45 in CA - IPCC. I am a Merit Holder ( B.Com ). The following is my educational details.
PLEASE ACCESS MY RESUME FROM THE FOLLOWING LINK: https://drive.google.com/file/d/1hYR1uch-ff6MRC_cDB07K6VqY9kQ3SFL/view?usp=sharing
3.80+
3+ Reviews
10+ Question Solved
Related Book For
Accounting Principles
ISBN: 9781118566671
11th Edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
Question Posted:
Students also viewed these Accounting questions
-
Holding all other factors constant, indicate whether each of the following signals generally good or bad news about a company. a. Increase in the current ratio. b. Increase in the debt to assets...
-
Indicate whether each of the following statements is true (T) or false (F) in a hotel accounting department. _____ The night auditors get their name because of the long hours they work. _____ There...
-
Indicate whether each of the following assets should be valued at fair market value (FMV), lower of cost or market (LCM), or historical cost (HC) on the balance sheet. For certain assets, historical...
-
Creativity and Innovation Management (Feb. 2008) published an article on identifying the social network characteristics of lead users of children's computer games. Data were collected for n = 326...
-
An article by D. Schaefer et al. (Journal of Tropical Ecology, Vol. 16, pp. 189-207) reported on a long-term study of the effects of hurricanes on tropical streams of the Luquillo Experimental Forest...
-
There are three consulting firms hiring this year: Nous Group, BCG, and McKinsey. John will graduate from the MBA program at UoL and would like to find a job in consulting. John currently works as an...
-
Success at Quitting Smoking After six months, 156 of the 914 smokers who accepted the invitation to be in the reward-only program stopped smoking, while 78 of the 146 smokers who paid a deposit quit....
-
Tom Brown, controller of Microbiology Labs, informs you that the company has sold a segment of its business. Mr. Brown also provides you with the following information for 2012: The following...
-
3. (2 points) A binary tree data structure can be implemented as: template class Node { T key; Node *left; Node "right; }; template class Tree ( Node "root; }; 8 3 (10) 1 6 (14) 7 (13) Write a...
-
On January 10, 2018, Kirsten married Joe. Joe sold his personal residence on October 25, 2017, and excluded the entire gain of $175,000. Although they had originally planned to live in the house that...
-
The price-earnings ratio of General Motors (automobile builder) was 8, and the price-earnings ratio of Microsoft (computer software) was 38.Which company did the stock market favor? Explain.
-
The return on assets for Tresh Corporation is 7.6%. During the same year Treshs return on common stockholders equity is 12.8%.What is the explanation for the difference in the two rates?
-
Consider the percent of the U.S. population without health insurance coverage. The file P3_76.XLS contains such percentages by state for both 1994 and 1995. a. Describe the distribution of state...
-
What is a dummy variable? What does the coefficient on the dummy variable measure? Give some examples drawn from economics, finance, and accounting of times when we would want to use a dummy variable...
-
Lottery A offers a 70 % chance of winning $45 and a 30 % chance of losing $100. Lottery B offers a 60 % chance of winning $55 and a 40 % chance of losing $85. Lottery C offers an 80 % chance of...
-
Explain the problems that would arise from comparing price indexes for computers over the last three decades.
-
What is the capital asset pricing model (CAPM)? What are the assumptions of this model? What does it tell us?
-
When we use a lagged dependent variable in our regression, R 2 is generally much higher than when such a variable is not included. Can you think of any reasons why?
-
Assume that in your country, the health of the hospitality industry improved after the last peak of the pandemic and that there might be further improvements in the coming weeks due to evidence of...
-
On 1 July 2021, Croydon Ltd leased ten excavators for five years from Machines4U Ltd. The excavators are expected to have an economic life of 6 years, after which time they will have an expected...
-
Sketch the region enclosed by the curves and compute its area as an integral along the x- or y-axis. x = 2y, x + 1 = (y 1) 2
-
You have the following information for McBride Inc. for the month ended October 31, 2012. McBride uses a periodic method for inventory. Instructions(a) Calculate(i) Ending inventory ,(ii) Cost of...
-
You have the following information for Prospector Gems. Prospector uses the periodic method of accounting for its inventory transactions. Prospector only carries one brand and size of diamondsall are...
-
This information (in millions) is available for the Automotive and Other Operations Divisions of General Motors Corporation for a recent year. General Motors uses the LIFO inventory method. Beginning...
-
The Power of Trade and Comparative Advantage: Work It Out 3 ? Here's another specialization and exchange problem. This problem is wholly made-up, ? so that you won't be able to use your intuition...
-
Government spending as a fiscal policy tool is used to: A) ?Decrease the national debt B) ?Directly stimulate economic activity by increasing demand C) ?Reduce inflation D) ?Lower interest rates
-
Automobile demand has fallen during a recent recession, and Ana has been laid off from her job on the assembly line. Rajiv recently lost his job as a waiter at a local restaurant. A recent increase...
Study smarter with the SolutionInn App