Which of the following is an idicator of financial risk ? a) Net Sales / Total Assets b) Total Liabilities / Equity c) Return on Assets d) Return on Equity
Q: a. Ratio of fixed assets to long-term liabilities b. Ratio of liabilities to stockholders equity
A: a. Ratio of fixed assets to long-term liabilities Fixed assets / Long-term liabilities = $793,900 /…
Q: What is the difference between total assets and total liabilities? a) Dividend b) Bond sinking…
A: Balance sheet has two parts ASSETS and LIABILITIES
Q: Explain what is the risk component of financial assets.
A: Risk can be described as the likelihood of an unexpected or negative outcome. Any act or activity…
Q: How is the short term debt repayment capacity of a company is assessed ? Choose the INCORRECT OPTION…
A: Current ratio is the ratio of current assets to the current liabilities.
Q: Working Capital is a measure used to assess the liquidity of the company, computed as current assets…
A: The Answer is false Refer step2 for explanation
Q: An analyst has calculated a ratio using as the numerator the sum of operating cash fl ow, interest,…
A: This ratio is interest coverage ratio It is the profitability and debt ratio which helps to identify…
Q: Which of the following financial statements would be most useful if an analyst wants to know the…
A: A. Balance sheet - It shows the financial position of a company as on particular date . It records…
Q: Define each of the following terms:f. Accounting profit; net cash flow; NOPAT; free cash flow;…
A: Accounting profit is the net profit of a firm after deducting a company’s revenue from its expenses.…
Q: ) Explain liquid asset management as it relates to a financial institu
A: As per company policy, it s only possible to solve the first part.
Q: Which one of the following shows the sections of a cash flow statement correctly? Select one: a.…
A: Solution:- Introduction:- Cash flows denotes the net amount of cash that an entity receives and…
Q: What is the value for 'Returned on Invested Capital' of the firm below (in the picture) based on the…
A: Please see the next step for the solution
Q: The relative proportion of debt, equity, and other securities that a firm has outstanding constitute…
A: Capital structure refers to the amount of money invested in a busines. this amount of money can be…
Q: Which of the following statements accurately describes the statement of cash flows? A. It…
A: The statement of cash flows records all the sources and use of the cash in the business during a…
Q: Which of the following is true regarding the debt to equity ratio? a. The debt to equity ratio…
A: The debt to equity ratio represents proportion of company's liabilities to the shareholders equity.…
Q: Which of the following types of transactions would be reported as a cash flow from investing…
A: issuance of bonds payable: financing activity issuance of capital stock: financing activity purchase…
Q: eturn on equity b) return on assests c) return on capital
A: Ratio analysis is a method of analyzing a company's liquidity, profitability, and operational…
Q: The cost of equity is ________. Group of answer choices A. the interest associated with debt B. the…
A: Cost of equity: Cost of equity is the percentage amount of dividend and growth to the paid to the…
Q: Which one of the following formulas is correct? O i) Profit margin = EBIT / Sales O ii) ROA = ROE /…
A: ROA = ROE / Equity Multiplier ROA = Net Income / Total Assets ROE = Net Income / Shareholders'…
Q: For which of the following balance sheet items will the book value and market value most likely be…
A: The financial statements of a company consists of income statement and balance sheet. The balance…
Q: Investors' reliance on income and cash flow statements
A: Cash flow statement is a statement of cash rceipts and cash payments. There are three activities in…
Q: Define each of the following terms:a. Capital structure; business risk; financial risk
A: Introduction: While selecting a capital structure main motive of the company is shareholders wealth…
Q: Which one of the following is the best indicator of long-term debt paying ability? A)Working…
A: Working capital turnover Working capital turnover is a ratio that measures how efficiently a company…
Q: What data flows from the statement of retained earnings to the balance sheet?a. Net incomeb. Cashc.…
A: Retained earnings: Retained earnings are the portion of earnings kept by the business for the…
Q: a. How does the return on total assets differ from the return on stockholders’ equity?b. Which ratio…
A: a. When return on total assets is considered, interest expense is added to the net income and…
Q: Which of the following is true about a common size balance sheet? The assets, liabilities, and…
A: Definition: Common size financial statements: These are the financial statements in which all the…
Q: Indicate where each of the following items is reported on financial statements. Choose from the…
A: Financial statement: Financial statements are condensed summary of transactions communicated in…
Q: Indicate where each of the following items is reported on financial statements. Choose from the…
A: Financial statement: Financial statements are condensed summary of transactions communicated in…
Q: Liquid assets is determined by Select one: a. Current assets - current liabilities O b. Current…
A: Liquid assets are the assets which is just equal to cash equivalents.
Q: Define the following. a. Retained earnings? b. Goodwill? c. Investing activities?
A: a. Retained earnings: The amount of earnings undistributed as dividends to the stockholders is…
Q: Why are income statements and cash flow statements both valuable to investors? Analyze the income…
A: This question explains about operational operations, investment activities, and financing activities…
Q: When it comes to financial reporting, why are investors drawn to the income statement and cash flow…
A: This question explains about the income statement vs the cash flow statement include.
Q: Which of the following is an advantage of EV/EBITDA ratio compared with P/E ratio? A. EV/EBITDA…
A: Financial ratios are the measures that are used in the financial analysis of a corporation, and are…
Q: a) Calculate the equity (total asset – total liability) to asset ratio of the bank (Hint: equity to…
A: a. Computation of the equity to asset ratio of the bank: Excel computations: Worksheet…
Q: Describe the specific elements of the balance sheet (assets, liabilities, and owners’ equity), and…
A: Balance sheet refers to the financial statements of a company that incorporates assets,liabilities,…
Q: Please answer with explanations asset turnover, return on total assets, return on stockholders…
A: Asset Turnover ratio represents the contribution of assets in revenue creation. Return on Assets…
Q: Interdependence of financial statements (a) Which financial or operational data item appears on both…
A: Interdependence of financial statements:
Q: For measuring the financial risk in the organisation, we can use? Select one: O a. Cash flows Ratio…
A: Higher Debt leads to higher financial risk.
Q: Return on equity measure expected rate on investment of : Equity Assets and equity Both of above
A: Lets understand the meaning of return on equity. Return on equity indicates the how much net income…
Q: The numerator in the calculation of the ratio of liabilities to stockholders' equity is O a. Total…
A: c. Total Liabilities
Q: Which of the following fi nancial statements is generallyprepared fi rst?a. Income statement.b.…
A: Introduction: Balance sheet: All Assets and liabilities are recorded in Balance sheet. It tells the…
Q: On a statement of financial affairs, a company's liabilities should be valued at Select one: a.the…
A: Solution: Liabilities are present obligation of company as a result of past event that requires…
Q: Which of the following is the correct formula for calculating rate of return on total assets? A.…
A: Return on assets: Return on assets is the financial ratio that determines the amount of net income…
Q: Conduct a comprehensive review of the available literature to determine the income statement's and…
A: Answer: Income statement and Cash flow statements both are the parts of financials of the company.…
Q: Equity equals: A . Assets – Liabilities.
A: Asset is something that is owned by the firm and provides economic future value. liabilities: It is…
Q: Capital structure refers to Select one: a. Total assets minus Liabilities b. Shareholders' equity c.…
A: The capital structure is how a firm utilizes different sources of finance to fund its operations.
- a)
Net Sales / Total Assets
- b)
Total Liabilities / Equity
- c)
Return on Assets - d)
Return on Equity -
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- Total debt-to-assets ratio, debt-to-equity ratio and Long-term debt-to-capital ratio are examples of what type or category of ratios? a. Activity O b. Profitability O c. Liquidity O d. Leveragea. What is debt management ratio? b. What is profitability ratio?Dividing quick assets by current liabilities is the calculation for the a.ratio of liabilities to stockholders' equity. b.acid-test ratio. c.current ratio. d.return on investment.
- Which of the following may take the form of dividend income and/or capital appreciation? a. bond investments b.gain from an investment c.equity investments d.expected rate of returnWhat is the Financial Performance and Financial Position for:-a. Liquidityb. Profitabilityc. LeverageWhich of the following risk is affected largely by the debt-to-equity ratio? Liquidity risk Financial risk Management risk Overall Business risk
- Match the ratio to the building block of financial statement analysis to which it best relates.A. Liquidity and efficiency B. Solvency C. Profitability D. Market prospects Debt-to-equity ratioFor which of the following balance sheet items will the book value and market value most likely be closest at the time the balance sheet is prepared? Select one: O a. Short-term debt O b. Net fixed assets O c. Long-term debt O d. Common stock O e. Retained earningsWhich of the following is NOT a profitability ratio? Select one:a. Return on Equityb. Net Profit Marginc. Return on Assetsd. Average Collection Period
- Define each of the following terms:a. Capital structure; business risk; financial riskHow is the impact of uncertainty reflected in a discounted cash flow (DCF) analysis?a) Debt/equity mixb) Discount ratec) Income tax rated) Interest coverage ratioLiquidity. The net profit / sales percentage measures which of the following? O Return on investment. O Risk. Profitability.
