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22-27 please A common-size balance sheet helps financial managers determine: which customers are paying on a timely basis. If costs are increasing faster or slower

22-27 please image text in transcribed
A common-size balance sheet helps financial managers determine: which customers are paying on a timely basis. If costs are increasing faster or slower than sales. If changes are occurring in a fir's mix of assets. If a firm is generating more or less sales per dollar of assets than in prior years. The rate at which the firm's divides are changing. Which one of the following actions will increases the current ratio, all else constant? Assume tge current ration is greater than 1.0. Cash purchase of inventory Cash payment of an account receivable Cash payment of an account payable Credit sale of inventory at cost Cash sale of inventory at a loss Which one of the following is a measure of long-term solvency? Price-earnings ratio Profit margin Equity multiplier Receivables turnover Quick ratio Blooming Gardens has an inventory turnover of 16. Pus means the firm: sells its entire inventory every 16 days. only stocks its inventory every 16 days. buys 16 days of inventory with each order. sells its inventory by granting customers 16 days credit sells its inventory an average of 16 times each year. Which one of the following will increase the profit margin of a film, all else constant? Increase in interest paid Increase in fixed costs Increase in depreciation expense Decrease in the tax rate Decrease in sales Financial statement analysis: is primarily used to identify account values that meet the normal standards. is limited to internal use by a firm's managers. provides useful information that can serve as a basis for forecasting future performance. provides useful information to shareholders but not to debt holders. is enhanced by comparing results to those of a firm's peers but not by comparing results to prior periods. Russell's Hardware has inventory of $218,000, equity of $421.800, total assets of $647,700. and sales of $587,200. What is the common-size percentage for the inventory account? 26.81 percent 33.66 percent 37.12 percent 49.09 percent 51.68 percent

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