A major metric of a company's health and its prospects for a long life is how much _ _it can generate. A) cash flow B) depreciation C) tax deferral D) net income A O O O O
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A:
Q: Compute the total profit or loss for the company.
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- Quiz 2: Solvency Debt-to-equity ratio Times interest earned ratio Debt service coverage ratio Cash flow from operations to capital expenditures ratio Profitability Return on assets ratio Return on sales ratio Asset turnover ratio Return on common stockholders equity ratio Leverage Earnings per share (EPS) Price/earnings (P/E) ratio Dividend payout ratio Dividend yield ratio A measure of a companys success in earning a return for the common stockholders. The relationship between a companys performance according to the income statement and its performance in the stock market. The ability of a company to remain in business over the long term. A variation of the profit margin ratio; measures earnings before payments to creditors. A companys bottom line stated on a per-share basis. The percentage of earnings paid out as dividends. The ratio of total liabilities to total stockholders equity. A measure of the ability of a company to finance long-term asset acquisitions with cash from operations. A measure of a companys success in earning a return for all providers of capital. The relationship between net sales and average total assets. The relationship between dividends and the market price of a companys stock. The use of borrowed funds and amounts contributed by preferred stockholders to earn an overall return higher than the cost of these funds. An income statement measure of the ability of a company to meet its interest payments. A statement of cash flows measure of the ability of a company to meet its interest and principal payments. How well management is using company resources to earn a return on the funds invested by various groups.Question: 1. Return on capital employed or Return on net assets or Return on investment (need to give interpretation) Profit before interest and tax/year end capital employed Profit before interest and tax/average capital employed wealth during year Profit before interest and tax/net assets17 the ratio that measures a company's success in using its assets ro earn income dor rh persons who finance the business is the what?
- 1) The category that is generally considered to be the best measure of a company’s ability to continue as a going concern is a) cash flows provided (used) by operating activities. b) usually different from year to year. c) cash flows provided (used) by investing activities. d) cash flows provided (used) by financing activities. 2) Using the indirect method, which of the following would be added to net income? a) depreciation expense b) increase in prepaid expenses c) decrease in accounts payable d) increase in accounts receivable 3) In preparing a statement of cash flows, the conversion of bonds into common shares will be reported in the a) investing activities section. b) shareholders' equity section. c) financing activities section. d) notes to the financial statements. 4) Net income reported for the current year was $208000. Depreciation expense was $34400. During the year, Accounts Receivable and Inventory increased $18700 and $25600, respectively. Prepaid Expenses and Accounts…Question 4 The following information was provided by the company Dowecheatem & Howe Inc. ointerest expense has increased significantly in 2020. In a brief sentence or two explain why this may have occurred. b. Depreciation expense has increased significantly in 2020.1n a brief sentence or two explain why this may have occurred. o. Prepare a Statement of Comprehensive Income (both years) a. Prepare a Statement of Financial Position (both years) o. Calculate Operating Cashfiow for the year 2020Problem 1: Viance Queen Company Required: Compute for the company’s profitability and operating efficiency ratios for 2019 Compute for the financial health ratios of the company for 2019 A.Profitability ratio Return on Assets: ROA (EBIT/Average Assets) ROE (NI/Capital) ROE (NI/Average Capital
- Problem 1: Viance Queen Company Required: Compute for the company’s profitability and operating efficiency ratios for 2019 Compute for the financial health ratios of the company for 2019 A.Profitability ratio a. Return on Assets: ROA (NI/Total Assets) ROA (NI/Average Assets) ROA (EBIT/Total Assets) ROA (EBIT/Average Assets) ROE (NI/Capital) ROE (NI/Average CapitalDefine profitability raitos return on assets and return on equity. According to the following metrics: ROA Return on Assets: 14%; ROE Return on Equity: 305%. What is the profitability the of example company? Why or why not is this company profitable?Question 4Each of the following is determined according to IFRS exceptSelect one: a.taxable income. b.income for book purposes. c.income for financial reporting purposes. d.income before taxes. Question 5An assumption inherent in a company’s IFRS statement of financial position is that companies recover and settle the assets and liabilities atSelect one: a.the amount that is probable where “probable” means a level of likelihood of at least more than 50%. b.their reported amounts c.the present value of future cash flows. d.their net realizable value. Question 6Machinery was acquired at the beginning of the year. Depreciation recorded during the life of the machinery could result in Future Future Taxable Amounts Deductible AmountsSelect one: a.Yes No b.No Yes c.Yes Yes d.No No
- Q13 Which one of the following would reduce the cash balances of a business and not reduce the profit for the year? Select one: a. Dividends paid b. Interest paid c. Remuneration to directors d. Distribution costsQuestion B: What is the current financial position and recent financial performance of the company?Which is a measure of the profitability of the core operation? 1.Gross profit ratio 2.interest cover 3.return on capital employed 4.net profit ratio
