Sales RO 300,000 Sales returns RO 10,000 Opening stock RO 70,000 Closing stock RO 25,000 Direct expenses RO 40,000 Purchases RO 140,000 Net profit RO 40,000 Share Capital RO 100,000 Reserve and Surplus RO 25,000 Long term Loans RO 50,000 II

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: Which of the following ratios is always the lowest? a. The net profit margin b. The gross profit…

A: Profit margin is a financial metric that measures profitability of a business or a specific product…

Q: What is Day's-sales-outstanding ratio?

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: The net profit margin ratio is calculated by dividing net sales by net income.

A: INTRODUCTION: The net profit margin calculates how much net income is earned as a percentage of…

Q: How do you compute the receivables turnover ratio?

A: Receivables turnover (RT) ratio: this is an accounting measure which shows the effectiveness of a…

Q: What is the Total·assets·turnover ratio?

A: Ratio Analysis: The process of analyzing financial ratios and comparing its degree of performance…

Q: Should the following project be accepted if the company requires both a payback on discounted cash…

A:

Q: Which of the following ratios indicates the percentage of each sales dollar that is available to…

A: The objective of the question is to identify the correct ratio that indicates the percentage of each…

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: why it is important to use profitability ratios

A: Ratio analysis is an evaluation tool used by the businesses with a view to obtain knowledge about…

Q: investment securities for $5, 15,400 on a two-year, 8 per= 7, sold machinery for its ca machinery…

A: 1 Statement  of cash flows      For the year ended Dec 31 2017   Cash flow from operating…

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: Period cost shown in statement of financial position. True or false

A: The period costs are the costs that are incurred in the period they are expensed.

Q: What does price/earnings ratio tell you?

A: Price-to-Earnings Ratio shows relation between entity’s stock price relative to earnings made on…

Q: What is operating profitability ratio (OP)?

A: These ratios evaluate a firm’s ability to earn profits. They help the stakeholders of the company to…

Q: How is Gross Margin % calculated?

A:

Q: Explain percent of sales method.

A: Accounts receivable: Accounts receivable refers to the amounts to be received within a short period…

Q: What's the difference between the profit margin and gross margin ratio?

A: Ratio is the arithmetic relationship between two figures. Accounting ratios shows the…

Q: Distinguish between gross profit margin, operating profit margin, and net profitmargin and provide…

A: To distinguish between the gross profit margin, operating profit margin, and net profitmargin and…

Q: How is the profit margin on sales calculated?

A: Profit margin on sale: it's categorized under profitability ratio , generally this ratio is used to…

Q: compute the gross profit percentage

A: Gross profit: It implies to the excess of company's net sales over the cost incurred on goods sold…

Q: What are the three components that can be described as the profit margin?

A: Income minus expenses gives us profit. The profit margin is the percentage of profits on sales or…

Q: The of each product's sales to. O selling price, profit O unit price, expense O ratio, total sales O…

A: Sales mix refers to the combination or proportion of different products or services that a company…

Q: How to calculate gross margin and gross sales

A: Sales means the amount recorded in books as revenue earned by selling the goods or services. Account…

Q: Explain profitability ratios

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

Q: Merits and demerits of the cost value profit analysis CVP

A: Lets understand the basics. Cost volume profit analysis (CVP) is as name suggest analysis of total…

Q: How is the times-interest-earned ratio calculated, and what does it evaluate?

A:

Q: I need exampel on: Price - to -earning ratio Price book ratio Price to cash flow ratio

A: Price Earnings Ratio: It is the connection between an organization's price of stock and the EPS…

Q: Which of the following is the indicator of the rate at which company is earning profit? Select one:…

A: Ratio Analysis Each  items in the financial statements of an enterprise is compared by using ratio…

Q: Typically, Which Is More Comprehensive, the P/E Ratio, PEG Ratio, EV To Sales Ratio or the EV To EBİ…

A: Introduction : . The price to earnings ratio is a multiplier that is used to value the relative…

Q: Based on the above, what is the following: (e)   Gross profit rate      %

A: Gross Profit is the profit after deducting direct costs from the sales.Net profit is calculated by…

Q: How do I calculate the gross margin value under the FIFO, LIFO, and weighted average methods.

A: Gross Margin refers to the profit earned  during an accounting period. Therefore, it is also called…

Q: explain the impact on financial statement using FIFO, weighted avverage and LIFO. When would the…

A: Inventory management system is the system where the inventory are maintained in books of accounts…

Q: What is the formula for gross profit

A: Gross profit is an excess of revenue over the cost of goods sold.it can be calculated by deducting…

Q: What is the gross profit margin? Higher ratio or lower ratio

A: Ratio analysis can be defined as the comparative analytical tool. It helps to determine the…

Q: List and describe the components of Gross Domestic Product on the demand side. Be sure to account…

A: Gross Domestic Product: In a particular period of time, the gross domestic product (GDP) quantifies…