Question: Holding all other factors constant, indicate whether each of the following changes generally signals good or bad news about a company. (a) Increase in profit

Holding all other factors constant, indicate whether each of the following changes generally signals good or bad news about a company.
(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.

Step by Step Solution

★★★★★

3.41 Rating (164 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a The increase in profit margin is good news because it means that a greater percentage of net sales ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

47-B-A-F-S (78).docx

120 KBs Word File

Students Have Also Explored These Related 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...

Dear accounting gurus find the attachment below and help me solve the questions WEEK 4 (1) Answer the following questions. a. Your friend C. J. Gibson cannot understand how the characteristic of...

I included all of the instructions within the document,. But if you have any question, please feel to contact me. WEEK 4 (1) Answer the following questions. a. Your friend C. J. Gibson cannot...

Answer the following 2 2 questions 1 . Explain sustainable income. What relationship does thisconcept have to the treatment of discontinued operations on theincome statement? . 2 Hogan Inc. reported...

Part D 1) Mr. Beckham the owner of Adidos Company is puzzled. His company had a profit margin of 25% in the year 2020. He feels that this is an indication that the company is doing well. Ms. Susan,...

Holding all other factors constant, indicate whether each of the following changes generally signals good or bad news about a company. (a) Increase in profit margin ratio. (b) Decrease in inventory...

Holding all other factors constant, indicate whether each of the following changes generally signals good or bad news about a company. (a) Increase in profit margin. (b) Decrease in inventory...

Holding all other factors constant, indicate whether each of the following changes generally signals good or bad news for the company. Explain your answers. increase in profit margin ratio decrease...

Holly needs $21,800 worth of new equipment for his shop. He can borrow this money at a discount rate of 11% for a year. Find the amount of the loan Holly should ask for so that the proceeds are...

Information concerning the capital structure of the Petrock Corporation is as follows: During 2014, Petrock paid dividends of $1 per share on its common stock and $2.40 per share on its preferred...

Discuss the risk associated components with market risk, credit risk, liquidity risk and pperational risk

American Food Services, Inc., acquired a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1, 2021. In payment for the $5.8...

The pH of an aqueous solution of 0.503 M formic acid , HCOOH is .

1) The market for backyard grills consists of four individuals: Abe, Betsy, Chloe, and Daniel. Abe considers himself a grill-master, and a backyard grill is an absolute necessity. Abe willing to pay...

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

A list of financial statement items for Georges Company includes the following: accounts receivable $14,000; prepaid insurance $2,600; cash $10,400; supplies $3,800, and short-term investments...

The following information (in millions of dollars) is available for Limited Brands for 2008: Sales revenue $9,043; net income $220; preferred stock dividend $0; average shares outstanding 333...

For each of the following events affecting the stockholders equity of Willis, indicate whether the event would: increase retained earnings (IRE), decrease retained earnings (DRE), increase common...

please help Initial Post Instructions Medical professionals can find relationships between variables. The more you drink alcohol, the less functionality of your liver. The less carbohydrates a person...

A Arm's preferred stock pays an annual dividend of $4. and the stock sells for $88 Flotation costs for new issuances of preferred stock are 6% of the stock value What is the after-tax cost of...

An investor sells 250 shares short at $28. The sale requires a margin deposit equal to 55 percent of the proceeds of the sale. If the investor closes the position at $37, what was the percentage...