Which of the following financial ratios is not a measure of operating profitablitlity? Return on Assets Ratio Inventory Turnover Ratio None of these Gross profit margin ratio net profit on sales ratio

Q: Which of the following is NOT one of the ratios in Profitability group? Select one: a. Quick ratio…

A: Profitability ratios are those ratios which helps in measuring and determining the profitability of…

Q: Explain the Limitations of Financial Ratios in Business Decisions?

A: Financial ratios are very useful in showing the relationship between the items within the financial…

Q: Show the calculation of the following activity ratios: (1) the receivables turnover ratio, (2) the…

A: The activity ratio of a company is used to determine how well a company is using its assets in…

Q: r to create a common size statement for the Statement of Profit and Loss, all items must: a. Divided…

A: The correct answer is  e. Divided by sales

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: What financial ratio is predominantly used to determine profitability?

A: Return on Investment: Return on Investment (ROI) is a performance measuring ratio utilized to assess…

Q: Which of the following assumptions is assumed in the percent of sales forecasting method?     All…

A: The percent of sales method is a financial forecasting system in which all of a business's accounts…

Q: Which of the following ratios is not used to analyzeprofitability?a. Net profit margin ratio.b.…

A: Financial ratio analysis: It can be defined as an analysis tool that is based upon the relative…

Q: rom the given Statement of Financial Position and Income statement, solve for the following: 1)…

A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: From the given Statement of Financial Position and Income statement, solve for the following: 1)…

A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…

Q: Describe implications of valuing inventory at net realizable value for financial statementsand…

A: Net realizable value means the value at which the inventory can be sold in the market reduced by the…

Q: of the following is a technique for reviewing relationships on an income statement by assigning net…

A: Solution: Technique for reviewing relationships on an income statement by assigning net sales as…

Q: Describe ratios that are used in profitability analysis.

A: Profitability ratios are a class of financial metrics that are used to assess a business's ability…

Q: What types of liabilities, assets, and equity are not assumed to vary directly with sales

A: Solution:- The following types of assets, liabilities, and equity are assumed to vary directly with…

Q: How does inflation distort ratio analysis comparisons for one company over time (trend analysis) and…

A: Inflation is the situation in which prices of products rises in the market. Due to inflation value…

Q: Comparative Profit and Loss Statement:

A: Joint costs are costs incurred up to the point of separation of Products. In this case, joint costs…

Q: When is the forecasted growth rate in residual operating income the same as the forecasted growth…

A: The income generated in excess of the minimum rate of return refers to the residual income. The…

Q: Which of the following is NOT an efficiency ratio us financial statement review? OOC Operating…

A: Efficiency ratio how much is the firm efficient and more efficiency mean more profit and more growth…

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: How do you calculate all the ratios?

A: Financial ratios are used to interpret the financial statements. Each financial ratio helps in…

Q: The primary focus of horizontal analysis isa. the income statement only.b. the balance sheet only.c.…

A: Financial statements can be analysed by using two methods. 1) Vertical method. 2) Horizontal method.…

Q: What are the limitations to using financial ratio analysis [such as profitability ratios, liquidity…

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

Q: Which of the following is not an element of the financial statements?A. future potential sales price…

A: Financial statements seem to be reports generated by a corporation's management to demonstrate the…

Q: Which of the following ratios is a measure of solvency? Multiple Choice Total asset turnover.…

A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…

Q: Why are assets revalued and liabilities reassessed at the time of change in profit sharing ratio?

A: Meaning of Revaluation of AssetsA revaluation of assets is an action that may be required to…

Q: Explain profitability ratios

A: SOLUTION:- A profitability ratio is a measure of profitability, which is a way to measure a…

Q: Which is wrong about the use of financial statement analysis? a. Seasonality factors may contribute…

A: Financial statements are the reports of an organization, prepared at the end of a financial period.…

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

A: Profit and loss is calculated as below-

Q: Calculate the following financial ratios for The Boeing Company. If not Applicable write N/A:…

A: 1.Return on shareholder's equity=Net income/Share holder's Equity 2.Return on Assets=Net…

Q: Which of the following questions cannot be answered when analyzing the information presented in an…

A: Answer: Income statement is the statement which shows the profit or loss when the revenue and…

Q: I. Presented here are the components in Sanders Company's income statement. Determine the missing…

A: As requested to answer C& D sub parts , we are answering only those two sub parts.

Q: How do gross profits, operating income, and net income differ

A: In finance when making or analyzing an income statement we look into different types of income or…

Q: Comment on the following statements with suitable example: i. The ratio return on assets has net…

A: Ratio analysis is a tool used by the financial analyst to measure the financial performance of the…

Q: percent-of-sales method to preparing a pro forma income statement

A: Pro forma is a method that is used for calculating financial results using certain projections or…

Q: Which of the following ratios is not considered to be a test of profitability? Group of answer…

A: Profitability ratio includes :- Net profit margin Gross profit margin Operating profit margin…

Q: When examining the current ratio and looking at the company's liquidity, which of the following…

A: Ratio analysis: Ratio analysis is a tool that establishes a relationship between the different…

Q: Which of the following statements are true? A) Common-size balance sheet shows relative value of…

A: Common size statement , also known as component percentage statement is a financial tool for…

Q: Which of the following terms does not mean the same as the others? a. Bottom line b. Profit from…

A: Profit from operations is the profit derived from day to day operations of the entity. That is the…

Q: Ratios:  Which of the following ratios is not considered to be a test of profitability?   Long-Term…

A: Profitability ratios are a group of financial indicators that are used to evaluate a company's…

Q: On an income statement, can a company report total revenues instead of net sales? Are these the same…

A: Income statement:It is the financial statement which is prepared by the company which shows the…

Q: Which of the following are not part of the components ofthe DuPont system for measuring and…

A: DuPont system is used to measure the return on the equity.

Q: No single ratio can predict the success or Failure of a company. What different types of Ratios are…

A: Different types of ratios necessary for financial analyses: 1. Working Capital ratio 2. Current…

Q: Find the below following: Gross Profit Ratio Operating Ratio Net Profit Ratio Operating (Net) Profit…

A: as per Bartleby guidelines when multiple subparts asked for one single question we can answer 1st 3…