1) What would be the gross profit margin and net profit margin? 2) what is the relevance of creditor days or how does it apply?

Q: Please help with the calculation of Net profit margin, Gross profit margin, Current ratio, Acid test…

A: Net profit margin = Net profit (loss) / Sales Revenue = - 1410 / 5600 = - 0.25   Given Net income =…

Q: What formula is used to determine net profit

A: Net profit is the actual income earned by an organization after paying all the expenses. It is…

Q: How do you find gross profit in financial accounting?

A: Gross profit is the income earned by the company after deducting the cost of goods sold from the…

Q: What is Ration Analysis in Financial Analysis?

A: Financial analysis is done for financial statements such as balance sheet for the period ended,…

Q: In general, what is the concept of earnings and profit designed to represent?

A: When addressing the bottom line of a company's income statement, the concept of earnings is most…

Q: will bills  payable given to creditors affect the current ratio?

A: Current ratio is the ratio of Current Assets to Current Liabilities.  Current ratio = Current…

Q: e and net revenue increase but net profit margin decrease and net revenue increase, net profit…

A: The Net Profit Margin (also known as "Profit Margin" or "Net Profit Margin Ratio") is a financial…

Q: What is the net credit sales?

A: As per the information given,  Net credit sale = Closing balance of Trade and other receivables -…

Q: What is the relationship between the income statement and the balance sheet?

A: Income statement: An income statement is a financial statement prepared by the company that shows…

Q: r to pay un

A: Horizontal analysis :  Financial analysts use horizontal analysis, also known as trend analysis or…

Q: what are the creditor days

A:

Q: Describe the procedure for evaluating a change in credit policyusing the income statement approach.

A: Credit policy: The detailed guidelines of the credit extended to the company which includes factors…

Q: Options I have for denominator are - average accounts receivable, net average total assets cost…

A: The profit margin ratio can be calculated by dividing profit by net sales. It indicates the…

Q: The customers of the company would like to know its credit worthiness and the terms of payment. O…

A: Accounting concept states the basic principles, assumptions as well as rules that work on the…

Q: What is the difference between a nominal account and a real account?

A: There are three types of accounts in financial statements, Real Account Personal Account Nominal…

Q: Which are the total interest expense in the income statement?

A: Interest expenses mean costs related to financing. It is also called finance costs. From the above…

Q: What are lines of credit? From the viewpoint of a short-term creditor, why do lines of credit…

A: Financial statements: Financial statements are condensed summary of transactions communicated in the…

Q: What is the difference between a nominal account and a real account?

A: Nominal Account: These are the accounts that pertain to Incomes (or Revenues) and Expenses. Thus,…

Q: How does the rule of debit and credit relative to accounting equation?

A: Accounting equation:   It is a mathematical expression that presented all assets of the firm are…

Q: What do you understand the vertical and horizontal income statement account and balance sheet…

A: The financial statement contains both income statement and balance that are very useful for users'…

Q: Why is the amount of the Income obtained from the Income statement extended to the balance sheet…

A: The income statement is one of a company’s core financial statements that are prepared to find out…

Q: In accounting terms, what is the difference between profit and loss

A: Accounting is based on the principle of double-entry. It may be described as how a company records…

Q: When is Profit and Loss Account made? Why?

A: Profit and loss account: profit and loss account also called an income statement. Every business…

Q: alculate the gross profit ratio and net profit ratio?

A: The gross profit ratio is a financial ratio that evaluates the performance and efficiency of a…

Q: How is the times-interest-earned ratio calculated, and what does it evaluate?

A:

Q: What factors affect accounts payable turnover ratio?

A: Accounts Payable ratio is calculated by dividing total supplier purchases by the average accounts…

Q: How does the income statement affect the balance sheet?

A: Balance Sheet: It is also termed as the Statement of Financial Position. Balance Sheet represents a…

Q: Which of the following questions cannot be answered when analyzing the information presented in an…

A: Answer: Income statement is the statement which shows the profit or loss when the revenue and…

Q: Hi why is the net income on the credit side and not debit?

A: Net Income - Net Income is the result of the revenue over expense incurred by the company. It will…

Q: How to calculate net profit margin in pro forma balance sheet

A: Financial statements are referred as the records of the business operations and financial…

Q: What is the formula for gross profit

A: Gross profit is an excess of revenue over the cost of goods sold.it can be calculated by deducting…

Q: How is the earned income credit determined?

A: Earned income credit: Earned income credit is a refundable tax credit system designed by the federal…

Q: Describe the accrual accounting rate-of-return method. What are its main strengths and weaknesses?

A:

Q: What is a credit limit? How does it impact credit utilization (debit-credit ratio) and why is that…

A: Credit Limit :- Credit limit is an limit of spending on an Customer or its the maximum credit can a…

Q: How do you find total sales in financial accounting?

A: Total sales in accounting: It refers to the net revenue of the organization that is reported in the…

Q: How to get or compute the Net sales?

A: Net sales can be calculated by deducting sales returns and sales discounts.