1. In FS analysis what is the basic objective of observing trends in data and ratios?
1. In FS analysis what is the basic objective of observing trends in data and ratios?
2. Distinguish between trend percentages and component percentages. Which would be better suited for analyzing the change in sales over a term of several years?
3. Net Sales of Premiere Gen. Store have been increasing at a reasonable rate but net income has been declining steadily as percentage of these sales? What appears to be the problem?
4. Under what circumstances would you consider a corporate net income P1million as being unreasonably LOW? HIGH?
1. What is the basic purpose for examining trends in a company's financial ratios and other data?
2. Why does an analyst compute financial ratios rather than simply studying raw financial data?
3. What is meant by financial leverage?
4. A company seeking a line of credit at a bank was turned down. The bank stated that the company's
5. Why at some instances a current ratio of less than 2:1 becomes acceptable?
1. What is meant by financial leverage?
2. If a stock's market value exiſfeeds it book value, then the stock is overpriced. Do you agree? Explain.
3. Angel Inc. is in a rapidly growing technological industry. Would you expect the company to have a high or low dividend pay-out ratio?
4. Western Company experience a great deal of seasonal variation in its business activities. The company's high point in business activity is in June; its low point is in January. During which month would you expect the current ratio to be highest?
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