Which of the following statements is usually correct? A low receivables turnover is good for the business The lower the total debt-to-equity ratio, the lower the financial risk for a firm The higher the tax rate for a firm, the lower the interest coverage ratio An increase in net profit margin with no change in sales or assets means a poor ROI

Q: If the company equity ratio dropped what does that mean?

A: Equity Ratio: It represents the ratio of a firm's total equity to the total assets. The equity…

Q: If a firm’s common-size income statement shows that the earnings after tax percentage is too low,…

A: The common size statement is a statement related to performance of company with respect to base…

Q: Which of the following can lead to an increase in the net working capital of a firm?   A. A…

A: Net working capital  = Current Assets - Current Liabilities

Q: Which one of the following statements is correct?  A.  If a firm decreases its inventory…

A: Inventory period is based on how much inventory on average you keep on hand and receivable period is…

Q: Explain why the following statement is true: "All else the same, firms with relatively stable sales…

A: 1.Stable sales indicate stable cash flows which means that the firm will be able to service its…

Q: In general, as a company increases the amount of short-term financing relative to long-term…

A: Explanation :   An increase in the proportion of short-term financing will not affect a company’s…

Q: Assuming you have done the financial ratio analysis and you have realized that profitability is…

A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS   After looking at the case study, there is a lot of…

Q: Which of the following is NOT related to (or contributes to) business risk? Remember that a…

A: Business risk refers to a company's or organization's vulnerability to factors that could reduce…

Q: For each of the following cases, state whether the statement is true for LIFO or for FIFO. Assume…

A: when inventory costs are rising, LIFO uses most recent purchases, which increases cost of good sold,…

Q: Which of the following events is most likely to encourage a firm to INCREASE the amount of debt in…

A: Stability in the business will lead to increase in long term debt

Q: What would be a reason a company would want to understate income?A. to help nudge its stock price…

A: Profitability of the business is an important measure for business evaluation. It depends on the…

Q: There is an old business saying that “You shouldn’t be inbusiness if your company doesn’t earn…

A: This saying is completely true. Because business is done for profit, and interest is an expenses if…

Q: If Company A uses more debt than Company B and both companies have identical operations in terms of…

A: If A company utilizes more debt than that of B company then, interest will be charged on the debt…

Q: Which of the following is true? O If a firm's volume of credit sales decreases, then its liquidity…

A: Following is the correct option.

Q: Why might it make sense for a mature, slow-growth company to have a high debt ratio

A: Mature, Slow-growth Company: These are companies established in the industry, having a strong…

Q: Which of the following statements is most correct? JUST EXPLAIN ONE ANSWER WHICH IS INCORRECT. a.…

A: Following is the answer to the given question

Q: The use of financial leverage by the firm has a potential impact on which of the following?…

A: Financial leverage refers to the use of debt capital in the capital structure of the company. The…

Q: 9. A firm is considering actions which will raise its debt ratio. It is anticipated that these…

A: financial ratio analysis are considered to be an important or investor in order to make decisions…

Q: Which of the following is an example of “cookie jar” accounting?  a) A company creates cash…

A: Cookie jar accounting is a term that have been defined as below.

Q: Which of the following statements is false regarding the abnormal earnings approach to valuation?…

A: Abnormal earning valuation This method of valuation helps to determine company’s net worth based on…

Q: The difference between the market value of the firm and the amount of money invested in the firm is…

A: An investor takes into consideration the market value of the company to decide whether investment…

Q: A downward adjustment in a firm's payout ratio means that the firm is reinvesting a : proportion of…

A: Retention ratio refers to those portions of net income of the company which is not paid by the…

Q: Which of the following statements about the current ratio is FALSE?   A. The higher the current…

A: Current ratio indicates the short-run liquidity position of the firm and is the ability of a firm to…

Q: rn on total assets can improve its return on equity, all else remaining the same, but   A.…

A: Return on Equity (ROE) evaluates asset management, cost management, and debt management, a company…

Q: True False

A: The receivables turnover ratio is a metric that indicates how efficiently a firm collects on its…

Q: Do you agree with each of the following statements? Explain. •EBITDA makes companies with…

A:

Q: Which of the following is a disadvantage of long-term debt as a means of company financing? Group…

A: Funds are very important and necessary for smooth running of a business organization. A business has…

Q: A company’s dividend policy can also be affected by factors internal to the organization and by the…

A: Dividend Policy is the policy of a company where the distribution of retained earnings will be given…

Q: Which one of the following is an advantage of LIFO? a. In periods of rising prices, less income…

A: >> LIFO Method means Last in first out i.e latest purchase is sold first. >> In rising…

Q: Which of the following statements is NOT CORRECT? The corporate valuation model can be used both for…

A: Corporate valuation is a systematic process to find the true value based on financial data.  Most of…

Q: Which of the following are signs of weakness in a company’s competitive position? a. A…

A: Competitive Position:- Competitive position refers to the spot of the organization, its items or…

Q: Making changes to a firm’s credit policy involves trade-offs. Assuming that all other factors remain…

A: Cash discount means giving discount for the customers who are paying amount immediately or before…

Q: Which of the following statements is incorrect? O If the current ratio is too high the company may…

A:

Q: The market-to-book ratio is the ratio of a firm that reports negative retained earnings on its…

A: The market-to-book ratio is also called as Price-to-Book ratio. This ratio is determined to…

Q: Which of the following is most consistent with using debt to reduce agency costs or conflicts?…

A: Statement number 4 is consistent with using debt to reduce agency costs or conflicts.

Q: Which of the following statements is CORRECT? * In most cases, increasing a company's debt ratio…

A: The question is multiple choice question. Required  Choose the Correct Statement.

Q: Why is the following statement true? “Other things being the same, firmswith relatively stable sales…

A: Introduction: This question is related to the concept of accounting and finance. Corporate money…

Q: answer these question in just two sentences. a..“If a firm sold some inventory on credit, its…

A: The financial ratios refer to the ratios that are calculated using the financial data from the…

Q: Compare and contrast the net income margins of both Company A and B. Do you think the company with…

A: Net income margin = net income/sales