Identify five differences between financial and managerial accounting. If you investing in a business, which of the
Question:
Identify five differences between financial and managerial accounting.
If you investing in a business, which of the three types of financial statements you would want to review. Why?
A company shows the following selected financial information from activities for the current year.
Gross sales $225,000
Current assets $40,000
Long-term assets $100,000
Accounts Payable $16,000
5 Year Note Payable $44,000
Net Income $7,200
Outstanding shares 5,000
Par value of shares $9 per share
Retained Earnings $35,000 (includes current net income)
Calculate the following from the above information provided:
Current ratio
Debt-to-equity ratio
Return on Owner’s equity
Earnings per share
Explain how financial ratios help managers monitor their own efficiency and effectiveness.
Support your position/opinions with reference to your readings. Your posting should be about 300 words and include a web link to your online article, video, blog, etc.
Expert Answer:
Investors who are investing in a Company they mainly look at the three Financial Statements which ... View the full answer
