Vern Thoms is puzzled. His company had a profit margin of 10% in 2020. He feels that
Question:
Vern Thoms is puzzled. His company had a profit margin of 10% in 2020. He feels that this is an indication that the company is doing well. Tina Amos, his accountant, says that more information is needed to determine the company’s financial well being. Who is correct? Why?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 87% (8 reviews)
Tina is correct A single ratio by itself may not be very meani...View the full answer
Answered By
Ali Khawaja
my expertise are as follows: financial accounting : - journal entries - financial statements including balance sheet, profit & loss account, cash flow statement & statement of changes in equity -consolidated statement of financial position. -ratio analysis -depreciation methods -accounting concepts -understanding and application of all international financial reporting standards (ifrs) -international accounting standards (ias) -etc business analysis : -business strategy -strategic choices -business processes -e-business -e-marketing -project management -finance -hrm financial management : -project appraisal -capital budgeting -net present value (npv) -internal rate of return (irr) -net present value(npv) -payback period -strategic position -strategic choices -information technology -project management -finance -human resource management auditing: -internal audit -external audit -substantive procedures -analytic procedures -designing and assessment of internal controls -developing the flow charts & data flow diagrams -audit reports -engagement letter -materiality economics: -micro -macro -game theory -econometric -mathematical application in economics -empirical macroeconomics -international trade -international political economy -monetary theory and policy -public economics ,business law, and all regarding commerce
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Managerial Accounting Tools for Business Decision Making
ISBN: 978-1119392422
8th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Question Posted:
Students also viewed these Business questions
-
Vern Thoms is puzzled. His company had a profit mar- gin of 10% in 2017. He feels that this is an indication that the company is doing well. Tina Amos, his accountant, says that more information is...
-
Raphael Ochoa is puzzled. His company had a profit margin of 10% in 2012. He feels that this is an indication that the company is doing well. Cindy Lore, his accountant, says that more information is...
-
Maribel Ortiz is puzzled. Her company had a profit margin of 10% in 2014. She feels that this is an indication that the company is doing well. Gordon Liddy, her accountant, says that more information...
-
Factor completely. 3(r + 5) - 11(r + 5) 4
-
A metal ring is dropped into a localized region of constant magnetic field, as indicated in FIGURE 23-36. The magnetic field is zero above and below the region where it is finite. (a) For each of the...
-
Which of the following is not a trade or business expense? a. Interest on investment indebtedness. b. Property taxes on business equipment. c. Depreciation on business property. d. Cost of goods sold.
-
Figure 20.27 shows the flowsheet for a process for the production of gasoline (mainly octane) from an olefins feed (propane, propene, and butene). The feed to the process is heated in E-100, and then...
-
Filer manufacturing has 9.6 million shares of common stock outstanding. The current share price is $46, and the book value per share is $4. Filer manufacturing also has two bond issues outstanding....
-
BY ARIF HASSAN AND THIVAGAR VELAYUTHAM, INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA Alpha Plantations Sdn Bhd is a palm oil plantation located in Malaysia. It consists of a palm oil estate and one palm...
-
On May 15 of the current year, Quick Corporation distributes to its shareholder Calvin a building having a $250,000 FMV and used in Quick's business. The building originally cost $180,000. Quick...
-
a. If Erin Company had net income of $300,000 in 2019 and it experienced a 24.5% increase in net income for 2020, what is its net income for 2020? b. If 6 cents of every dollar of Erins revenue is...
-
Data for Stiever Corporations maintenance costs is shown below. Compute the variable- and fixed-cost elements using regression analysis. Present your solution in the form of a cost equation. (We...
-
The cottagers on the shores of Lake Invidious are an unsavory bunch. There are 100 of them, and they live in a circle around the lake. Each cottager has two neighbors, one on his right and one on his...
-
Question 2. Consider an 5-node network (with 0 as the depot vertex and 4 other vertices) where the travel cost matrix and the demands are as follows: 0 1 2 3 4 1 2 279 420 0 0 279 0 420 256 0 288 349...
-
Forecast Legends' next years' Income Statement and Balance Sheet. 2)What is Legends' "additional funds necessary"? 3)What are some key factors to consider when forecasting? 4)What are some of the key...
-
Show that u(x,t) = [sin(x-t) + sin(x + t)] is a solution to the one-dimensional J wave equation given by t = u x
-
These are the guidelines in doing the activity. 1. In doing the activity, you should illustrate four elements of art and four principles of art based on your understanding about the lesson. The four...
-
DS Unlimited has the following transactions during August. August 6 Purchases 90 handheld game devices on account from GameGirl, Incorporated, for $300 each, terms 2/10, n/60. August 7 Pays $500 to...
-
What role did weak accounting ISs play in her ability to commit fraud?
-
What kind of rays are X-rays?
-
Adjusting entries are required by the cost principle of accounting. Do you agree? Explain.
-
Distinguish between the two categories of adjusting entries, and identify the types of adjustments applicable to each category. Discuss.
-
Distinguish between the two categories of adjusting entries, and identify the types of adjustments applicable to each category. Discuss.
-
After you've completed this week's assigned reading, watch the video below. Next, respond to the Discussion questions underneath. Your first post should answer those questions and should be made by...
-
Factorize (x4 - 20x + 100)
-
Paragraph discussing food insecurity in the United States. What agencies in the federal government play an important role in ameliorating this situation? What groups of people are at particular risk?
Study smarter with the SolutionInn App