Based on the preceding information, your calculations, and your assumptions, which of the following statements can be included in your analysis report? Check all that apply. Cute Camel Woodcraft Company's ability to meet its debt obligations has worsened since its debt-to-equity ratio increased from 0.30 to 0.38. O The company's creditworthiness has improved over these three years as evidenced by the increase in its debt-to-equity ratio over time. A plausible reason why Cute Camel Woodcraft Company's price-to-cash-flow ratio has increased is that investors expect higher cash flow per share in the future. An improvement in the inventory turnover ratio could likely be explained by the new sales-forecasting strategies that led to better inventory management.

When comparing the % of sales in the last month of the year to the total sales for the year, the auditor notes that the percentage seems significantly higher this period than previous periods. The auditor is aware that the management receives a bonus for meeting certain performance metrics. The sales booked during the last month of the year allowed the company to meet that sales metric, earning management the bonus. Given this information, which of the following assertions with respect to revenue would you most likely be concerned about? Both occurrence and cutoff Cutoff Completeness Occurrence

At the end of 2022, Shah Corp. underestimated its annual bad debts expense by $50,000. What is the effect of this error, if any, on total assets and total stockholders’ equity on 12/31/22? Total assets and total stockholders’ equity are both overstated by $50,000. Total assets and total stockholders’ equity are both understated by $50,000. Total assets and total stockholders’ equity are both correctly stated.

Two companies are in the retail sales business, but their performance results are different, which is evidenced by the following data: Financial performance ratio Return on capital employed (ROCE) Return on ordinary share financing (ROSF) 30% Average debt collection period Average debt payment period Gross profit margin Net profit margin Average stock turnover period 20% 63 days 50 days 40% 10% 52 days Comp A Company B 17% 18% 21 days 45 days 15% 10% 25 days Perform the analysis of these data and describe the differences between these two companies. It is known that in one of them the work with consumers is well organised, while the other one is offering competitive prices. Which of these advantages are attributable to each company?

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In November 2007, for example, General Motors (GM) announced that it would take a write-off of about $39 billion, meaning that it was reducing net income for the third quarter of the year by that amount. Discuss why General Motors’ stockholders probably didn’t suffer as a result of the reported loss. What do you think was the basis for our conclusion?

Red Spark Incorporated is interested in assessing the following scenarios on its indicators of profitability. Solve each scenario independently. a. Red Spark has taken significant steps to decrease expenses and expects its net income to increase by ​$8 million to $68 million. If its profit margin is 5.0​%, what will the profit margin be after considering the decreased​ expenses? b. Red Spark has taken significant steps to decrease expenses and expects its net income to increase by ​$8 million to $68 million. If its average total assets are ​$494 ​million, what will its return on assets​ be?

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Suppose you are conducting an analysis of the financial performance of Cold Goose Metal Works Inc. over the past three years. The company did not issue new shares during these three years and has faced some operational difficulties. The company has thus pilot tested some new forecasting strategies for better operations management. You have collected the company's relevant financial data, made reasonable assumptions based on the information available, and calculated the following ratios. Price-to-cash-flow Inventory turnover Debt-to-equity Ratios Calculated Year 1 Year 2 1.40 0.98 2.80 2.24 0.40 0.32 Year 3 0.78 1.79 0.26 Based on the preceding information, your calculations, and your assumptions, which of the following statements can be included in your analysis report? Check all that apply. A decline in the inventory turnover ratio could likely be explained by operational difficulties that the company faced, which led to duplicate orders placed to vendors. A decline in the inventory…

Last year, a company had $355,000 in assets, $26,275 of net income, and a debt-to-total-assets ratio of 44%. Now suppose the newly hired CFO convinces the president to increase the debt ratio to 58%. Sales and total assets will not be affected, but interest expenses would increase. However, the CFO believes that better cost controls would be sufficient to offset the higher interest expense and therefore keep net income unchanged. What was the original return on equity (ROE) for this company?