Which of the following statements are true about profitability ratios? Check all that apply. If a company has a net profit margin of 10%, it means that the company earned a net income of $0.10 for each dollar of sales. If a company’s operating margin increases but its profit margin decreases, it could mean that the company paid more in interest or taxes. An increase in the return on assets ratio implies an increase in the assets a firm owns. If a company issues new common shares but its net income does not increase, return on common equity will increase.

Ratios used to determine whether or not a company can survive over a long period of time are: Group of answer choices A)Liquidity ratios. b)Solvency ratios. c)Profitability ratios. d)Market indicators ratios. e)None of the above

Which of the following generally indicates an improvement in a company’s financial position? The times interest earned ratio declines The days sales outstanding ratio increases The quick Ratio increases The current ratio declines The total assets turnover ratio decreases

It has been suggested that when applied to the percentage growth rate in a business, the law of large numbers implies that as a business grows, it becomes increasingly difficult to maintain its high growth rate in the past. What do you think of this argument? Can you provide an example to support your point of view? What does this mean for the FP&A in forecasting sales? What does it mean in terms of forecasting profit margins?

if a company profit margin is 0.6 and the current ratio is 0.6, is it advisable to invest in the company or not?

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Red Spark Incorporated is interested in assessing the following scenarios on its indicators of profitability. Solve each scenario independently. a. Red Spark has taken significant steps to decrease expenses and expects its net income to increase by ​$8 million to $68 million. If its profit margin is 5.0​%, what will the profit margin be after considering the decreased​ expenses? b. Red Spark has taken significant steps to decrease expenses and expects its net income to increase by ​$8 million to $68 million. If its average total assets are ​$494 ​million, what will its return on assets​ be?

A company’s comparative statements are given below. Please conduct the following analyses: a.     Horizontal analysis (trend analysis) on the income statement         b.     Vertical analysis (common size financial statement analysis) on the income statement                         Note:                   When the dollar change is positive, it indicates that the value increased and therefore the % change should be positive. Therefore, when calculating % change involving a negative baseline value, use the absolute value of the baseline number in the denominator: % change = (new value - original baseline value)/|baseline value|. Otherwise the % change will be inconsistent with the real change. For example:Let's say item A changed from -10 to +10. Item A increased by 20 and thus should give rise to a positive % change. However, % change based on formula using the original value of -10 is -200% = [10-(-10)]/(-10).Let’s look at another example. Assume item B changed from -10…

I need help with questions 1-6

Your company has a ROE of 18.5 which is very good for your industry. The company has an equity multiplier of 2.3 and a total asset turnover of 1.2. Both of these are higher than the industry average. What does this tell you about your company?