What is net operating income approach, what are the assumptions of this approach. In what conditions it is appropriate to use this approach. How the calculations are made, explain with an example.

Q: How do you make a horizontal analysis on an income statement and balance sheet?

A: Horizontal analysis of financial statements: In horizontal analysis of financial statement, the…

Q: Can someone use this to create an example of how to make an income statement pls?

A: Income statement of Adams' shoe shine for the month ended June 30,20XX are as follows

Q: What is the income statement formula?

A: Introduction: Income statement: All revenues and expenses are recorded in Income statement. it tells…

Q: Describe the content of the income statement.

A: The income statement consists of revenues and expenses along with the resulting net income or loss…

Q: In a restated set of financial statements prepared in accordance with the current cost accounting,…

A: Unrealized profit is the part of profit which is not realized till the end of the accounting year.…

Q: Explain and evaluate the eff ects on financial statements and ratios of capitalizing versusexpensing…

A: Capitalizing Costs: When any cost is incurred with respect to any asset which will provide long-term…

Q: Which balance sheet might be most useful to an investor? a. U.S. GAAP balance sheet b. IFRS GAAP…

A: IFRS is principal based.

Q: Explain the components of non operating income.

A: Non Operating Income is that part of an organisation's income that is obtained from activities not…

Q: Describe following:* Market approach* Income approach* Cost approach

A: Market Approach:   Market approach is a method used to assess the value of an asset depending on the…

Q: r to pay un

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

Q: What is operating profitability ratio (OP)?

A: These ratios evaluate a firm’s ability to earn profits. They help the stakeholders of the company to…

Q: What is a multiple-step income statement? What information does it provide beyond “bottom-line” net…

A: A multiple-step income statement is a part of financial statements in which net income is derived…

Q: What is the basic equation underlying the income statement?

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: • distinguish between the operating and non-operating components of the income statement

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: Explain why the income statement can also be called a “profit-and-loss statement.”

A: Income statement or profit and loss statement  Income statement or profit and loss statement is a…

Q: Explain and evaluate the effects of capitalizing versus expensing costs in the period in which they…

A: Capitalization : When a company incurs any expense, benefit of which will be available for more than…

Q: A company’s current fi nancial position would best be evaluated using the:B . income statement.

A: Financial position of the company is very much important especially for investors to make their…

Q: Define current operation income?

A: Current operation income otherwise called as operating income.Operating Income: Operating income is…

Q: Using the following information, what is the amount of income from operations?

A: 1. Rent Revenue isn't operating income. That's why its not added          to  calculate income from…

Q: In a restated set of financial statements prepared in accordance with the current cost accounting,…

A: Realized gain is the gain on sale of the asset where its cost price is less than the selling price.…

Q: What is the Operating Income?

A: As per your request the solution is as per your specified requirement. Operating income is the…

Q: Which of the following is the major independent variable in constructing pro forma income statements…

A: Proforma income statements is a projected statements which says about budgeted income and expenses…

Q: How does accounting rate of return (ARR) differ from the internal rate ofreturn (IRR)?

A: Introduction: Capital budgeting is an investment criterion or decision making mechanism for…

Q: Explain an example how to calculate gross profit.

A: Gross profit is the left over revenue after deducting all direct costs of making the products or…

Q: Under the historical cost accounting model the financial statement that is regarded as the most…

A: A financial statement is prepared by the management for users' decision making, it includes the…

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: 1. Prepare an income statement using the a. Net realizable value method b. Reversal cost method

A: Net realizable value refers to the value which is realized upon the sale of assets minus cost…

Q: What is Pro forma (or projected) profit-and-loss statement?

A: Pro Forma financial  Statement (also called as pro forma profit and loss) means that however the…

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: calculate return on assest for this statement

A: Introduction:- Return on asset ratio indicates how efficiently a company can manage its assets to…

Q: What is vertical analysis? What item is used as the base for the income statement? What item is used…

A: Financial Statement Analysis: Financial information of business is analyzed by the analysts,…

Q: What is the cost constraint, and how does it affect financial reporting?

A: Under financial accounting, constraints are referred to as boundaries or guidelines prescribed in…

Q: Explain the following and describe its impact on the financial statements: a. cost principle b.…

A: Financial statements are written records that present the business activities and the financial…

Q: What is the income-statement approach? When is it used?

A: Financial Accounting:   It refers to the process of recording the financial transactions of the…

Q: Explain Net Profit Margin, Return on Equity, Asset Turnover?

A: Here in this question we are require to understand the meaning of net profit margin, return on…

Q: Explain the difference between NOPAT and net income. Which is a better measure of the performance of…

A: The net operating profits after taxes (NOPAT) is the operating profits after taxes. It includes all…

Q: Explain the purpose of income statement.

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: What are the components of income statement?

A: Income statement: The financial statement which reports revenues and expenses from business…