Five measures of solvency or profitability

Q: Define each of the following terms:g. Market Value Added; Economic Value Added

A: We can define the terms as follows:

Q: Explain the following basic principles in cost management: a. profits b. life cycle costs c.…

A: basic principles in cost management explained Indirect costs Expenses which are  not readily…

Q: Discuss the market efficiency and its three forms.

A: The efficient market hypothesis (EMH)- states that the markets are generally efficient as it…

Q: why it is important to use profitability ratios

A: Ratio analysis is an evaluation tool used by the businesses with a view to obtain knowledge about…

Q: Define Gross Profit Method.

A: Definition:   Merchandise Inventory: Merchandise is the stock of goods bought by a wholesaler, or a…

Q: Define the term profitability index?

A:

Q: COMPUTE FOR THE LIQUIDITY, SOLVENCY, EFFICIENCY AND PROFITABILITY USING THE DIFFERENT FORMULAS IN…

A:

Q: A. Define transfer pricing and elaborate on FOUR (4) of its purposes.

A: Transfer pricing is the price which is to be calculated if there is any transaction between related…

Q: Identify and write out the equations for four profitability ratios.

A: Profitability ratios state the efficiency of the company in turning revenue into profits. Company…

Q: Profitability

A: Profitability is the prime purpose of every business. Every corporation tries to maximize its…

Q: How to calculate profitability analysis?

A: Sales revenue: It is the revenue earned by a business on selling the goods or providing services to…

Q: 3) Profitability Index 4) Internal Rate of Return

A: Profitability index is a kind of capital budgeting technique that evaluates a project based on its…

Q: How to calculate the Profitability index?

A: Profitability Index: It is a measure used in capital budgeting of the project's or investment's…

Q: Explain present value, future value, and opportunity cost.  Give an example of each concept.

A: Present value:It is the value at which the current sum of money in difference to some future value…

Q: = new profit sharing ratio

A: When a new partner is admitted the old partners need to sacrifice some amount their profit share to…

Q: Define return on sales ( or profit margin).

A: Financial ratios represent the accounting ratios computed by the management by using elements of…

Q: What is the relationship between profitability and efficiency, liquidity, investment, and efficiency…

A: (1) Financial Ratios will express financial Quantity concerning another financial ratio. (2) These…

Q: Distinguish between gross profit margin, operating profit margin, and net profitmargin and provide…

A: To distinguish between the gross profit margin, operating profit margin, and net profitmargin and…

Q: Describe the approaches of target profit.

A: Target Profit: It refers to the desired amount of profit that a company expects to achieve by the…

Q: With use of 5 disadvantages and 5 advantages discuss the use of ratio analyzing financial performan

A: Financial performance is a subjective assessment of a company's ability to generate revenue using…

Q: Calculate the profitability ratio which includes gross profit margin, operating profit margin, net…

A: Profitability Ratio: It measures the ability of company to generate profit from its operations or…

Q: What are the three components that can be described as the profit margin?

A: Income minus expenses gives us profit. The profit margin is the percentage of profits on sales or…

Q: What is new operating income? Give three examples?

A: New operating Income: New operating income is the revenue generated from the routine course of…

Q: 1) Cost-volume relationship states that maximum profit is reached by maximizing revenue. Select one:

A: the correct option with adequate explanation are as follows

Q: Calculate Gross profit ratio

A: Gross Profit is the difference between Sales Revenue and Cost of Goods Sold.  Gross Profit = Sales…

Q: Compute the following ratio analysis: Operating Profit Margin Net Profit Margin Write your…

A: Current Year: Net Sales = 120,000 Operating Income = 43,000 Net Income = 35,000   Prior Year: Net…

Q: theories of profit

A: The profit is the key incentive for a firm to operative business . According to each theory of the…

Q: The effects of financial choices can be understood by performing which of these? Check two. O Micro…

A: Decision making is the most important function of management. But when it comes to financial…

Q: What is Profitability analysis?

A: Profitability analysis is an important measure for the business to analyze the company's ability in…

Q: Define the term Profit margins?

A: Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities,…

Q: Identify six profitability ratios, and write their equations.

A: A quantitative method that provides information about the company including its liquidity,…

Q: Define “Market Value Added (MVA)” and “Economic Value Added(EVA).”

A: Introduction: Economic value added (EVA) and Market value added (MVA) are computations utilized to…

Q: What are the three principal components of profitability?

A: Profitability: Profitability means the degree to which revenue from business operation exceeds…

Q: How is Profit Margin calculated and what does It measure?

A: Note: Since you have asked multiple questions, we will solve the first question. To get the…

Q: net present value and profitability index

A: Net present value = Present value of net annual cash inflows - Present value of initial cash outflow

Q: Define concept IRR, NPV,WACC,ROI,DIvidend Valuation Model

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: Describe the use of profitability index.

A: Capital investment analysis:   Capital investment analysis is the process by which management…

Q: Define Gross profit ratio.

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: Calculate the future worth of a single quantity by identifying the three essential pieces of…

A: This question explains about the future worth of a single quantity by identifying the three…

Q: Explain 3 types of profit?

A: Profit is the amount of net income that remains with the organisation after deducting all the…

Q: gross margin ratio?        a) LEVERAGE RATIO

A: The gross margin ratio is a profitability ratio that compares the gross margin of a firm to its net…

Q: Compute NET Profit margin ratio

A: Net profit margin ratio = Net Income/ Revenue * 100

Q: What is a profit-sharing plan

A: A profit-sharing plan is also known as DPSP (Deferred profit-sharing plan).

Q: Define IRR, NPV,WACC,ROI,DIvidend Valuation Model write 5 lines about these concepts advantages and…

A: IRR: Internal rate of return: The rate of return which is expected to generate from an investment…

Q: What are the four aspects of rate-of-return analysis?

A: Rate of return analysis tells the rate of return which a investment can give. It carefully analyse…

Q: IRR, NPV,WACC,ROI,DIvidend Valuation Model

A: