What are the amounts and percentages of increase or decrease that would be shown with horizontal analysis?

Q: How are the ratios useful?

A: Answer: Ratio analysis is allowing a comparison two firm’s annual financial statement using certain…

Q: How can the Present-Worth Comparison be done?

A: The present worth method of comparison will diminish the cash flows of every choice to time zero by…

Q: What is the Economic Value Added (EVA) method? Provide a definition, state a formula, and define all…

A: Economic Value Added (EVA): EVA also called economic profit is a measure of the financial…

Q: What could a drop in the current ratio indicate

A: Solution...     A drop in current ratio indicates

Q: Which are the Methods for Finding Rate of Return?

A: A Rate of Return (ROR) is the gain or loss of an investment over a certain period of time. When the…

Q: is trend analysis helpful in analyzing ratio

A: Trend analysis the patterns going on within the industry in different ratios and help in comparison…

Q: What have been the results of empirical tests of the dividendtheories?

A: Answer: Constructing a perfect empirical test of the relation between pay-out strategy and the…

Q: Create a chart reflecting the conventional payback period?

A: The question is based on the calculation of payback period.

Q: How the other ratios affects the ROE?

A: Return on equity is used to measure the company’s ability to utilize their assets to generate…

Q: Define the term internal rate of return?

A: The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of…

Q: List and briefly explain the  quantitative and qualitative  factors consider for ratio  analysis

A: Ratio analysis is a quantitative method of observing a company's liquidity, operational efficiency,…

Q: Which of the two methods of estamting uncollectable provides   for the most accurate estimates of…

A: Allowance method It is a method for accounting bad debt expense, where uncollectible accounts…

Q: In performing horizontal analysis, why is it important to look at both the amount and the percentage…

A: Definition: Horizontal analysis: The comparison of an item of a financial statement of one year…

Q: What is the significance of finding the internal rate of return?

A: IRR helps to check the viability of the project. If IRR is more than Kc than Project seems to be…

Q: what significance is it when a balance sheet analyzed horizontally is consistent with the data…

A: Balance sheet :— Balance sheet is the Summary of Financial Position of the Company. Balance sheet…

Q: What is the total revenue of the reportable segments after considering the quantitative thresholds…

A: The reportable segments are those segments which have to be shown and to be declared by the company…

Q: Which is more meaningful, a single ratio data point or the trend shown by several ratio data points?

A: Ratio analysis is the study of several financial data points found in the financial statements of an…

Q: What is the difference between the possible returns and the expected return?

A:

Q: Identify major analytic ratios and describe their calculation

A: Accounting ratios are used by the company in checking the profitability, solvency, credit worthiness…

Q: What is trend analysis and what purpose d

A: Trend Analysis: Trend Analysis is a statistical method that attempts to determine upcoming movements…

Q: Why is Quick Ratio deemed a better measure than the two other measures? Explain:

A: Quick ratio is used for measuring the short term liquidity position of the company and forms a part…

Q: Which different terms are used to refer to rate of return?

A: Rate of return is the return that is expected by the investors from the investment made. It is…

Q: How do you turn an income statement int a forecasted return? And how is it helpful?

A: Return means earn additional on invested amount. Return is a positive factor in every investment.…

Q: What is the coefficient of variation over the same period?

A: The coefficient of variation (CV) is a statistical measure used to assess the relative variability…

Q: Define What are trendlines?

A: Technical Analysis: It is the study of price movement of the security. It involves study of chart…

Q: Define a comparative balance sheet?

A: A comparative balance sheet presents the information about the Assets, liabilities and Equity side…

Q: How do you calculate for the ratios under the value portion in the table above? (blank spaces)

A: Profitability ratios are very important in the judgement and investment decision making about the…

Q: Nine transactions are reflected in the October transaction worksheet of the Teresita Problem #10…

A: Accounting equation of the business says that total assets in the business must be equal to total…

Q: How can we determine a Compounding Period?

A: A compounding is the interest charged on interest. When any investment is made for certain years,…

Q: When completing a differential analysis, when are the differences shown as positive amounts? As…

A: In differential analysis , two alternatives are compared by taking first alternative as base and…

Q: What is meant by internal benchmarking in ratio analysis

A: Internal benchmarking is a process in which a company or an organisation looks within its own…

Q: how was the rate calculated, without excel

A: Given, The loan amount is $1000 Rate is 4% Fifth installment is $525

Q: How to estimate the Residual Value?

A: Residual value means value of fixed asset left after the use of fixed assets. Residual value also…

Q: Explain Key Statistical Relationships between Covariance and Correlation of Returns?

A: Covariance:It is defined as the statistical relationship between stock prices of stock that vary…