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: Compare and contrast Measuring GDP using the Income Approach vs Measuring GDP using the Expenditure…

A: Gross Domestic Product is defined as the final value of the goods as well as services that used to…

Q: Define price earnings ratio.

A: P/E Ratio: Price Earnings ratio is the ratio of company’s current share price to the company’s…

Q: What formula is used to determine net profit

A: Net profit is the actual income earned by an organization after paying all the expenses. It is…

Q: Briefly explain the difference between gross profit, net profit and EBIT.

A: Gross Profit is computed by deducting Cost of goods sold from Sales. Gross profit is the profit a…

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: Define the term s price-earnings ratio?

A: Financial Ratios: Financial ratio analysis expresses the relationships between different items…

Q: Explain price/cash flow ratio

A: Answer: Price to cash flow is determined through the division of price per share by cash flow per…

Q: What is the Relationship between the Incremental Cost and the Loan-to-Value Ratio?

A: The question is based on the concept loan to value ratio and its relationship with incremental cost.

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 the lnventory·turnover ratio?

A: Inventory turnover ratio: Inventory turnover ratio indicates how many times a corporation has sold…

Q: ompare and contrast Liquidity ratio and solvency rati

A: Analysis of the company's financial statements, such as the balance sheet and income statement, can…

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: 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: Define each of the following terms: c. Net present value (NPV) method; internal rate of return (IRR)…

A: Net present value (NPV) is the contrast between the present value of money inflows over some…

Q: Discuss some financial variables that affect the price-earnings ratio?

A: The price-Earning Ratio refers to the ratio between earning per share and the current market price…

Q: Define basic earning power (BEP) ratio

A: The formula to compute basis earning power ratio as follows:

Q: Explain profitability index

A: Profitability index is a financial tool which tells us whether an investment should be accepted or…

Q: Define what net sales?

A: Net sales means the amount of revenue earned from selling the goods or services in which business…

Q: How does accounting rate of return (ARR) differ from the internal rate ofreturn (IRR)?

A: Introduction: Capital budgeting is an investment criterion or decision making mechanism for…

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

A:

Q: Net net profit is computed in the

A: Net profit in computed in the Income statement or profit and loss statement .  The format of the…

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: 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: Carrying amounts in a GAAP balance sheet are measured using all the following except: Multiple…

A: From the given options, we can see that three options are commonly used in measuring carrying…

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: What is the strategy based on the income statement?

A: Income Statement is one of the most important part of any Financial Statement of the company. First…

Q: what the meaning of current assets ratio?

A: Assets are the rights and resources being held by the business. Assets that are either in cash or…

Q: How can we apply Annual-Worth Analysis for the calculation of Unit-Profit or Unit-Cost Calculation?

A: Annual worth analysis is an analysis of value of an investment on an annual basis. It measures the…