Insert $ 8 % Format as Table Delete- Cell Styles- Analyze Format Data Number G Styles Cells Editing Analys Educator Tasks 26) An investment analyst is determining whether Autojor is a good company to invest in, specifically in terms of whether it is continually creating more value for shareholders. The analyst performs a financial analysis on the last five years: Year 1 Year 2 Year 3 Year 4 Year 5 Total Revenue $1 $1.25 $2 million million million $2.7 million $3.1 million Net Profit 10.0% 8.7% 5.4% 5.0% 47% Margin Return on 20.0% 21.75% 21.60% 27.0% 29.14% Equity What can the analyst conclude about the company from this Information? O The company's end profits in proportion to sales are deteriorating over time. O The company is not doing a good job at increasing its total sales. Insert Powt Home End 1357 PM Rain coming 00 ww Nu Lock That Link Cape in Sok 7 8 % Format as Table Cell Styles Number ducator Tasks Styles DDelete AO Format An D Cells Editing Ana Total Revenue million million million million millic Net Profit 10.0% 8.7% 5.4% 5.0% 4.7% Margin Return on 20.0% 21.75% 21.60% 27.0% 29.14% Equity What can the analyst conclude about the company from this Information? The company's end profits in proportion to sales are deteriorating over time. O The company is not doing a good job at increasing its total sales. O The company is providing a lower and lower return to its shareholders over time. O The company's costs in proportion to its sales are decreasing over time. 27) Which process is an analyst performing when using Rain coming 12:57 PM A 00 wwww Number G Styles Cells Editing MyEducator Tasks The company's costs in proportion to its sales are decreasing over time. (27) Which process is an analyst performing when using financial ratios to compare how a company is performing over time? Cross-sectional analysis Seasonal analysis O Trend analysis O Time-adjusted analysis (28) All the companies listed in the table below display a leverage multiplier greater than one. Scroll Lock Sy Net Profit Margin Total Asset Turnover Leverage Return on Multiplier Equity Company 1 20.00% 1.5 2.5 75,0% Company 2 15.00% 0.83 20 25,0% 40 Pousse Home End Num Lock 12:57 PM Rain coming 4 Nun lock Cope lock Seat work $ %> Format as Table Cell Styles Delete B Analy Format Datam 5 Number G Styles Cell Editing Analy MyEducator Tasks (28) All the companies listed in the table below display a leverage multiplier greater than one. Net Profit Total Asset Leverage Return on Margin Turnover Multiplier Equity Company 1 20.00% 1.5 25 75,0% Company 2 15.00% Company 3 10.00% 0.83 2.0 25,0% 0.5 3.0 15.0% What does this imply? OA leverage multiplier is always greater than one, so this does not indicate anything unusual about these companies. O The leverage multiplier for each company actively contributes to the return on equity to shareholders, but a leverage multiplier closer to one would be ideal OA leverage multiplier greater than one indicates a risky business because there are more liabilities than equity. O The leverage multiplier for each company actively contributes to the return on equity to shareholders and can help expand the operations and growth of the firm Scroll Lock Rain coming 66/201 Ho NUM Lock Delete Page 7 Up Home 18 9 PgUp MyEducator Tasks (29) If a company significantly increases its use of debt to buy assets while holding its net profit margin and total asset turnover constant (as shown by the return on assets), what will happen to the company's return on equity? O It will increase. O It will remain unchanged. O It will equal the company's use of equity. O It will decrease. (30) At the beginning of the year, Freedom Rock Bicycles released its annual report with new goals for the upcoming year. After one quarter, Freedom Rock's stock dropped after those goals were not met. Which comparison method should this company's management use when it conducts ratio analysis? Sk ASC SysRa root Pau Breck 40 12:50 PM Rain coming de 602 Num Num Lock Cops Lock Stock Number ques styles Format Styles Cells Editing yEducator Tasks main unchange O it will equal the company's use of equity. O It will decrease. (30) At the beginning of the year, Freedom Rock Bicycles released its annual report with new goals for the upcoming year. After one quarter, Freedom Rock's stock dropped after those goals were not met. Which comparison method should this company's management use when it conducts ratio analysis? O Standardization O Trend analysis O Progress measurement O Cross-sectional analysis Sy Invert Home + Next 300P% 12:30 PM Rain coming de 40 Point Num Lock Con lock Soul Num Number Educator Tasks as lable" Delete Analy Cell Styles- Format Data Styles Cells Editing Analysis D 31) Kretsmart believes that its stock is undervalued. Using a ratio, the company determines that its stock is Indeed undervalued. Which ratio did Kretsmart use to find this information? O Current ratio O Profitability ratio O Market ratio O Debt ratio D (32) Last year, because it did not understand its cash needs well, Paradigm Toys Co. was often late to pay suppliers, and its relationship with key suppliers deteriorated. By forecasting its cash needs for the next six months, Paradigm Toys Co. is now better able to anticipate how much money it will need to ensure cash is available to pay suppliers in a timely fashion. Front bans Syg Num Rain coming 1258PM 660022 13313 Cops lock Sorok back