III. PROBLEMS. 1. Indicate whether the meaning and and consequences of the following statistical data / ratios which are considered symptoms of failure. Ratio High Low 1. Cash flow to total debt 2. Market Price 3. Working Capital to total asset 4. Retained earnings to total assets 5. EBIT to total assets 6. Market value of equity Book value or Debt 7. Sales to total assets

III. PROBLEMS. 1. Indicate whether the meaning and and consequences of the following statistical data / ratios which are considered symptoms of failure. Ratio High Low 1. Cash flow to total debt 2. Market Price 3. Working Capital to total asset 4. Retained earnings to total assets 5. EBIT to total assets 6. Market value of equity Book value or Debt 7. Sales to total assets

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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2.
Develop brief answers to each of the following questions: 1. Why does a decrease in receivable turnover create the need for cash from operating activities? 2. Why would ratiosthat include one balance sheet account and one income statement account, such as receivable turnover or return on assets, be qu estionable if they came from quarterly or other interim financial reports?
Which of the following is not one of the typical uses of financial ratios? a. Comparisons to a company’s historic values b. Comparison to benchmarksc. Comparison to competitors’ values d. Comparison to zero with positive values indicating desirable ratios and negative values indicating undesirable ratios.
Ratios are used to analyze activities in the following areas: a. asset management; liquidity; profitability; dividend use; debt management, market value b. profitability; asset management; liquidity; debt management; growth, market value c. asset management; liquidity; profitability; debt management, market value d. asset utilization; liquidity; profitability; debt management; security analysis
28. Help me selecting the right answer. Thank you
Is it possible to have “record net income” for a quarter and negative cash flows at the same time? Be specific in your response as to how you would, or would not, be able to see this in the financial statements.
81) Inadequacies of the existing system of financial ratios signify a need for a different approach to monitoring business performance. Of the following statements, which is NOT a shortcoming of financial ratios? a) financial measures are lagging indicators of business performance. b) financial ratios have a short-term orientation and emphasize the cash flow rather than the processes that contribute to cash flow. c) Financial ratios focus equally on the stockholders as on the customers, suppliers and employees. d) A and B e) A and B and C
When you are interpreting financial ratios, it is useful to compare a company's ratios to some form of standard. Group of answer choices True False
The statement of financial position is useful for analyzing all of the following exceptA. ProfitabilityB. SolvencyC. LiquidityD. Financial Flexibility
7. Explain the importance of financial management. 8. What if financial statement? 9. What is financial statement analysis? 10. Discuss various types of financial statement analysis. 11. Explain various methods of financial statement analysis. 12. What are the differences between fund flow and cash flow? 13. What is ratio analysis? Explain its types
How do I set this up? This is a few questions stuck together. Count as multiple questions I think. 4-12 Indicate the effect of the transactions listed in the following table on total current assets, current ration, and net income. Use (+) to indicate an increase, (-) to indicate a decrease, and (0) to indicate either no effect or an indeterminate effect. Be prepared to state any necessary assumptions and assume an initial current ratio of more than 1.0. Table for 4-12 Total Current Assets Current Ratio Effect on Net Income a Cash is acquired through issuance of additional stock. b Merchandise is sold for cash. c Federal income tax due for the previous year is paid. d A fixed asset is sold for less than book value. e A fixed asset is sold for more than book value. f Merchandise is sold on credit. g Payment is made to…

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