How to choose a base year for horizontal analysis?

Q: Who uses the original base period for the CPI index?Give an example?

A: CPI is the abbreviation used for the consumer price index. The combined weighted average value of…

Q: What is the Analysis for year 2018 - 2020?

A: An analysis is made in order to determine the process of the company. The analysis depends upon…

Q: Which year had a better performance?

A: Year in which net sales of the company is more, will be year which had a better performance. Net…

Q: Should the economic engineers make capital-expenditure decisions based on a prediction about the…

A: The question is based on the concept of capital expenditure decision making, which is investment of…

Q: How do I compute for the Started,completed, and transferred-out in Weighted Average EUP?

A: Started units are units at total number of units at the start of the process. Completed and…

Q: s. What is the geometric average return for this time period?

A: Geometric Average: It is the average return for a set of values computed with the products of the…

Q: the choice of alternatives using both the Annual Worth and Present Worth approaches.

A: Present Worth is the present value of all costs incurred over the useful period of life. Annual…

Q: How is the Current Ratio calculated?

A:

Q: What is the present value index for Project A?

A: Present Value Index: It represents the ratio of the project's net present value to the initial cost…

Q: In performing horizontal analysis, why is it important to look at both the amount and the percentage…

A: Definition: Horizontal analysis: The comparison of an item of a financial statement of one year…

Q: Expected return and standard deviation a.  What is the expected return of asset​ b?

A: The expected return is the return that an investor expects on its investment under various…

Q: Do the financial statements provide the basis for future investment analysis?

A: Yes, financial statements are helpful in providing the base for the analysis of investment in the…

Q: What are the best short-term and long-term investment strategies going forward into the future?

A: Short term investment strategy – Those investment that are usually traded for upto a span of 3 years…

Q: How do we calculate the current ratio?

A: Current ratio: Current ratio categorized under liquidity ratio which is helps to know the liquidity…

Q: What is the Annual Equivalence Analysis?

A: The criteria for annual equivalent analysis provides a basis for computing the value of an…

Q: What are some possible financial decisions in which using the Number of Periods (NPER)  formula…

A: NPER is a financial formula or function of excel that signifies the length of term of an investment.…

Q: What is current ratio and how is it calculated?

A: Liquidity ratio:Liquidity or solvency ratio helps to measure the ability of the concern to meet its…

Q: What role does the correlation what role does the correlation of two assets play in computation of…

A: The answer and the explanation can be seen below:

Q: Define seasonal dating

A: Introduction: When sales are seasonal an organization makes use of seasonal dating. For example,…

Q: How much is the investment income for the current year?

A: Net income refers to the income earned after deducting the company’s expenditures from the company’s…

Q: How is the standard deviation of returns calculated?

A: Standard deviation is ascertained as follows: The mean worth is dictated by including all the…

Q: What can be understood from annual percentage rate (APR)?

A: Annual percentage rate (APR): The yearly rate charged for borrowing or picked up from speculation is…

Q: How much is the return on plan assets during the year?

A: Formula for Closing Balance of Plan Assets = Opening value of plan assets…

Q: Are the non-GAAP measures calculated consistently from one period to the next?

A: Non-GAAP measurements are used by businesses to enhance their financial statements to communicate…

Q: a basis per

A: A basis period will be the time period for that a sole trader and the partnership pays the tax for…

Q: Describe the steps in short term decision making.

A: Short-term decision making: The short-term decision making requires some steps to follow for proper…

Q: What is percentage change analysis?

A: Percentage Change Analysis - in this analysis, we analyze the percentage change in amount of…

Q: What will an investment or a series of investment be worth after a period of time?

A: The time value of money states that an amount of money is worth more now than it will be in the…

Q: First holding period return need to be calculated, then annualized return.

A: Annual rate of return for first 10 years (r1) = 0.12 or 12% Annual rate of return for 10 to 15 years…

Q: Calculate the expected cost of investment and the standard deviation

A: The cost of investment can be defined as capital requirement for an investment. Expected cost f an…

Q: Determine the present worth of the series. Determine the future worth

A: Present Value = Cash Flow(1+i)n Future Value = Cash Flow x (1+i)n where, i= Interest rate n= period

Q: WHAT IS THE TOTAL CURRENT RATIO?

A: Current ratio is a ratio used for measuring the liquidity of the business that how much current or…

Q: What is horizon date?

A: The sum of growth rate (capital gains yield) and dividend yield is the rate of return on equity. The…

Q: if you were to invest your money which term will you use to compute for the interest in your…

A: Exact and Approximate times are two interest calculation times that take into two time periods. One…

Q: Explain the effects of interest rate and period in the calculation of present value and future…

A: The present value function or concept can be used to determine the present value of a future sum or…

Q: Write an alternative way to derive the geometric-gradient-series present-worth?

A: Geometric-gradient-series present worth is derived with the help of the following formula: g is…

Q: Project's Life Is Longer than the Analysis Period. Explain how?

A: The question is based on the concept of capital budgeting and life of project. The life of project…

Q: HOW TO KNOW THE RATIO OFCAPITAL INVESTMENT?

A: Ratio of capital investment is the ratio of net operating profit to total capital investment.

Q: What is trend analysis, and how does it differ from horizontal analysis?

A: Financial statement analysis: The process of analyzing the financial statements of a company to…

Q: How do you find historical returns and benchmarks on different funds?

A: Historical returns are based on the historical data of the company which portrays how the security…

Q: Compare short-term and long-term investment strategies.

A: Investment strategies can be defined as those strategies which consist of various methodologies and…

Q: Discuss and evaluate the use of the payback period as an investment criterion.

A: Payback Period: It refers to the period in which a project or an investment recovers its initial…

Q: What is pre-ranking approach with annual rebalancing to the testing of an asset pricing model?

A: The study which is done to identify the method of pricing of different assets is called asset…

Q: What is the period in years?

A: The future value is the future worth of the payment that will be paid or received at future.

Q: How to calculate current ratio?

A: The current ratio is a financial ratio that measures whether or not a firm has enough resources to…