Chapter 15: Q12RQ (page 835)
Briefly describe the ratios that can be used to evaluate a company’s stock as an investment.
The ratios that can be used for the evaluation of stock as an investment are earnings per share and price-earnings ratio.
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Briefly describe the ratios that can be used to evaluate a company’s profitability.
The following data are adapted from the financial statements of Bridget’s Shops, Inc.:
Total Current Assets $ 1,216,000
Accumulated Depreciation 2,000,000
Total Liabilities 1,540,000
Preferred Stock 0
Debt Ratio 55%
Current Ratio 1.60
Prepare Bridget’s condensed balance sheet as of December 31, 2018.
What is benchmarking, and what are the two main types of benchmarks in financialstatement analysis?
Grand Oaks Realty’s net revenue & net income for the following five-year period using 2015 as the base year, follow:
Requirement:
Compute a trend analysis for the net revenue & net income. Round to the nearest full percent.
Which grew faster during the period, net revenue or the net income?
Traditional Mills’s balance sheet appears as follows (amounts in thousands):
Use the following ratio data to complete Traditional Mills’s balance sheet.
Current ratio is 0.72.
2. Acid-test ratio is 0.36.
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