Question: Why is trend analysis helpful in analyzing ratios
Why is trend analysis helpful in analyzing ratios?
Answer to relevant QuestionsWhy might disinflation prove to be favorable to financial assets?Elizabeth Tailors Inc. has assets of $8,940,000 and turns over its assets 1.9 times per year. Return on assets is 13.5 percent. What is the firm’s profit margin (returns on sales)?Gates Appliances has a return-on-assets (investment) ratio of 8 percent.a. If the debt-to-total-assets ratio is 40 percent, what is the return on equity?b. If the firm had no debt, what would the return-on-equity ratio be?The balance sheet for Stud Clothiers is shown next. Sales for the year were $2,400,000, with 90 percent of sales sold on credit.Compute the following ratios:a. Current ratio.b. Quick ratio.c. Debt-to-total-assets ratio.d. ...The Canton Corporation shows the following income statement. The firm uses FIFO inventory accounting.CANTON CORPORATIONIncome Statement for 2013Sales $272,800 (17,600 units at $15.50)Cost of goods sold 123,200 ...
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