For each ratio listed, identify whether the change in ratio value from 2010 to 2011 is usually
Question:
Ratio 2011 2010 Ratio 2011 2010 l. Profit margin 2. Debt ratio 3. Gross margin 4. Acid-test ratio 8% 45% 33% 0.99 6% 40% 45% 1O 5. Accounts receivable turnover 6. Basic earnings per share 7. Inventory turnover 8. Dividend yield 5.4 6.6 $1.24 $1.20 3.53.3 1% 0.8%
Step by Step Answer:
Ratio 2011 2010 Change 1 Profit Margin 8 6 Favorable 2 Debt Ratio ...View the full answer
Fundamental Accounting Principles
ISBN: 978-0078110870
20th 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%...
-
Can public works increase equilibrium wages?
-
Propane gas at 22 bar and 423 K is throttled in a steady-state flow process to I bar. Estimate the entropy change of the propane caused by this process. In its final state, propane may be assumed to...
-
The Skyline Motel opened for business on May 1, 2019. Its trial balance before adjustment on May 31 is as follows. In addition to those accounts listed on the trial balance, the chart of accounts for...
-
An advanced engineering computer was purchased for $\$ 22,750$ and its expected life is 4 years. It is estimated the company could sell the computer for $\$ 500$ after 5 years. Compute and compare...
-
Implement the following LP model in a spreadsheet. Use Solver to solve the problem and create a Sensitivity Report. Use this information to answer the following questions: MIN: 5X1 + 3X2 + 4X3...
-
Bloomfield Manufacturing found the following information in its accounting records: $521,000 of direct materials used, $225,500 of direct labor, and $773,175 of manufacturing overhead. The Work in...
-
The Gilbert Air-Conditioning Company is considering the purchase of a special shipment of portable air conditioners manufactured in Japan. Each unit will cost Gilbert $80, and it will be sold for...
-
Compute the annual dollar changes and percent changes for each of the followingaccounts. 2011 2010 $217,800 $65,000 42,120 48,000 Short-term investments 57,000
-
The following information is available for Silverado Company and Titan Company, similar firms operating in the same industry. Write a half-page report comparing Silverado and Titan using the...
-
Construct a stem and leaf plot of time_100 using the first 3 most significant digits for the stem and the least significant digit for the leaf. So, for week 1, time_100 = 1280 which has a stem = 128...
-
The UK Corporate Governance Code, expects directors to provide a notice to the stock exchange in advance if they intend to sell off any shares of the company they are working for. What ethical issues...
-
The chapter opener case described how a firm took advantage of its strong market position to fund its working capital through payables. Normally, negative working capital should negatively affect...
-
In response to a falling Turkish lira the President of Turkey Recep Tayyip Erdoan on May 11, 2018 called for lower interest rates and described interest rates as the mother and father of all evil. a....
-
With instant coffee, baby food, and bottled water in the mix, Nestl crunches more than just chocolate. The worlds number-one food and drinks company in terms of sales, Nestl is also the world leader...
-
What is interest rate risk? How does a bonds maturity affect its interest rate risk? How about the bonds coupon rate?
-
Both carboxylic acids and alcohols contain the OH functional group, but only one of them is acidic in water. Which one is acidic? Why?
-
Experiment: Tossing four coins Event: Getting three heads Identify the sample space of the probability experiment and determine the number of outcomes in the event. Draw a tree diagram when...
-
Laura started a business on 1 May 2016, preparing accounts to 30 April . Her adjusted trading profit for the year to 30 April 2017 (before deduction of capital allow ances) was 263,150. Her purchases...
-
Consider the activities undertaken by a medical clinic in your area. Required 1. Do you consider a job order cost accounting system appropriate for the clinic? 2. Identify as many factors as possible...
-
Can services be delivered by means of process operations? Support your answer with an example.
-
What is the main factor for a company in choosing between the job order costing and process costing accounting systems? Give two likely applications of each system.
-
The sheet Inventory lists a grocery store's inventory for two months. Calculate the percent change for each item to two decimal places. If the formula gives an error, put "Initial Stock" in the cell....
-
A local manufacturer produces two different products on the same production line. Product A requires .5 hours of labor while product B requires .8 hours of labor. The total labor available in any one...
-
Hampton Company reports the following information for its recent calendar year. Income Statement Data Sales Expenses: Cost of goods sold Salaries expense Depreciation expense Net income Required:...
Study smarter with the SolutionInn App