What is the price/earnings ratio, and how is it calculated?

Q: What is the income statement?

A: Financial statements: Financial statements refer to those statements, which are prepared by the…

Q: What is Day's-sales-outstanding ratio?

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

Q: What do the Retained earnings represent?

A: Financial Statement:   They are annual reports of an organization summarizing the financial…

Q: Why is the income statement called the "profit and loss statement"?

A: Income Statement is called the profit and loss statement because it records all the incomes and…

Q: In generating a pro forma balance sheet, on what is the percentage of salesmethod based?

A: Balance Sheet is one of the financial statements that summarize the assets, the liabilities, and the…

Q: How to interpret an income statement?

A: Income statement: It shows all the income earned by the business and the expenses incurred during an…

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: What does the income statement report?

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

Q: What does the income statement measures?

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

Q: What is Re-order quantity? What is Re-order level? What is Maximum stocklevel? With respect to…

A: Inventory management consist of various levels namely re-order level, re-order quantity, maximum and…

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: What does price/earnings ratio tell you?

A: Price-to-Earnings Ratio shows relation between entity’s stock price relative to earnings made on…

Q: What is earning per share? Explain its significance.

A: Earnings per share:  Earnings per share represent the amount of income earned per share of…

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: Why must a cost be assigned to retained earnings?

A: Likewise, debt and equity financing, retained earnings has also some cost. The predictor care about…

Q: What does the gross profit percentage measure, and how is it calculated?

A: Gross margin percentage: The percentage of gross profit generated by every dollar of net sales is…

Q: explain mean reversion in earnings and how the accruals component of earnings aff ects thespeed of…

A: Earnings mean reversion means earnings of the company come to a normal level if the earnings for…

Q: Definition of income measurement?

A: The income statement is one of the financial statement of the business.

Q: By what name does Target label its income statement?

A:

Q: Price-earnings ratio

A: Price-earning ratio = Price per share/Earnings per share

Q: what the difference between accounting income and economic income?

A: Accounting income can be defined as an estimate of the performance in the operations of the company.…

Q: what is the process of projecting the income statement

A: Income statement forms a part of financial statements and is prepared with a view to calculate the…

Q: how is the selling price computed

A: Formula: Selling price=Cost100%-Gross profit ratio

Q: How does earnings management affect earnings quality?

A: Earnings of a company is referred as net income or bottom line item of a company. It is a very…

Q: I need exampel on: Price - to -earning ratio Price book ratio Price to cash flow ratio

A: Price Earnings Ratio: It is the connection between an organization's price of stock and the EPS…

Q: how is profit or loss calculated on an income statement?

A: Profit and loss is calculated as below-

Q: What is gross profit margin?

A: The method to analyze the performance of a company through its profitability is term as the…

Q: What are trade margins? How do they relate to thepricing for a produce, of goods?

A: A product is manufactured so that it can be sold to the consumer for the consumption purpose.…

Q: Measurement of income method consists of what exactly?

A: There are three methods of measurement of National Income. These are:  1. Product Method  2. Income…

Q: Calculate Gross profit ratio

A: Gross profit ratio = Gross profit/ Sales *100

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: How is gross profit calculated, and what does it represent?

A: Gross profit is the difference of amount obtained by subtracting Cost of goods sold from Net…

Q: What do you mean by the term "income approach"?

A: The income approach is a real estate valuation technique that is computed by dividing the…

Q: What do the Profitability ratios show?

A: Profitability Ratio Profitability Ratio is basically a tool to assess a company's ability to…

Q: Explain the types Earnings?

A: Earning is the amount of income that an individual or organization receives during a year.

Q: When is the The Income Statement used?

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

Q: for Market Price per S

A: Step 1 The market price or market capitalization of a company is calculated using the market price…

Q: How can earnings management affect the quality of ­earnings?

A: The concept of quality earning shows the amount of earning which is not earned by any default or…

Q: Where is net profit shown in balance sheet?

A: The profit of a corporation is referred to as net profits.

Q: What are the components of income statement?

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

Q: What are the impotance of Earning per Share and Diluted Earnings per Share in making economic…

A: Diluted EPS= Net Income−Preferred DividendsWASO+CDS​ where: EPS=Earnings per share WASO=Weighted…

Q: What are the characteristics of a strong income statement?

A: