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...
-
As with emails, make sure the subject line has enough information to signal clearly what the memo is about. Remember your audience: the recipient may get dozens of memos a day. Help him or her keep...
-
(a) For which processes in Figure P16.54 is W positive? (b) For which processes is it negative? Figure P16.54
-
Keppel Corporation manufactures and sells three different models of exterior doors. Although the doors vary in terms of quality and features, all are good sellers. Keppel is currently operating at...
-
A stock issued by a corporation that has a market capitalization of between $2 and $10 billion is called a Multiple Choice defensive O midcap growth income blue chip G stock
-
The Hit-and-Miss Manufacturing Company produces items that have a probability p of being defective. These items are produced in lots of 150. Past experience indicates that p for an entire lot is...
-
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...
-
Next Job, Inc., provides employment consulting services. The company adjusts its accounts monthly but performs closing entries annually on December 31. The firms unadjusted trial balance dated...
-
How do emergent properties within teams, such as synergy and collective intelligence, manifest and influence team performance, and what factors contribute to their development and sustenance?
-
Think about your workplace, organization, or industry; if you are not currently working, think about previous employment or a job that you are aiming for. The broader your perspective, the more...
-
Choose any global organization that successfully undertook a strategic transformation to adapt to changing market dynamics and sustain its competitive advantage. Examine the company's challenges,...
-
In examining C&C Sports through the lens of a SWOT analysis, several key factors come to light. The strengths of the company are evident in its established brand reputation and a loyal customer base...
-
A perfectly insulated container initially contains 0.2 kg of ice at -15 C. Now we add water at 30 C, but only the minimum amount needed to barely melt all the ice. Find the net entropy change of the...
-
Which of the following statements about a periodic inventory system is true? (a) Cost of goods sold is determined only at the end of the accounting period. (b) Detailed records of the cost of each...
-
How does the organizational structure of an MNC influence its strategy implementation?
-
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.
-
This is a partial adjusted trial batance of Cullumber Compary manualys
-
Which of the following journal entries will record the payment of a $1,500 salaries payable originally incurred for Salaries Expense? Select one: A. Debit Salaries Expense; credit Salaries Payable B....
-
What is the definition of substantially appreciated inventory? A. Inventory with a FMV greater than its basis B. Inventory and unrealized receivables with a FMV greater than their basis C. Inventory...
Study smarter with the SolutionInn App