Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 1/ analysts use financial statements for their ana

1/ Analysts use financial statements for their analysis for all of the following reasons except...

80.2K

Verified Solution

Question

Accounting

1/ Analysts use financial statements for their analysis for all of the following reasons except

a/ corporate performance.

b/ employee satisfaction.

c/ lending decisions.

d/ risks related to the investment.

2/ Consider the following income statement data for Barolo Inc.:

2020 2019
Sales revenue $97,300 $86,200
Less: Cost of goods sold 45,600 53,400
Gross profit 51,700 32,800
Less: Selling and administration costs 22,500 18,300
Net Income

$29,200

$14,500

Based on common-size analysis, which of the following statements is correct?

a/ The increase in sales revenue in 2020 was caused by higher selling and administrative expenses.

b/ The company's cost to sales ratio improved in 2020.

c/ The increase in gross profit in 2020 was due to increased sales.

d/ Net income as a percent of sales declined in 2020.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Statistics
1.2K views

1) You wonder whether men or women are more likely to be driving when both a...

Biology
1.2K views

Define genetic testing, list potential barriers to genetic testing, what is the greatest potential barrier to...

Biology
1.2K views

Define homeostasis

Biology
1.2K views

Describe 3 of the vital signals that geologists can monitor in order to forecast a...

Physics
1.2K views

1 Two resistors one 130 ohm and the other 210 ohm are connected in parallel...

Physics
1.2K views

If one surface of a biconvex lens is silvered then it behave as 1 A...

Statistics
1.2K views

True or false The normal distribution appears naturally in the world

Statistics
1.2K views

There are 10 large and 40 small hermit crabs in a tank Place an X...

Calculus
1.2K views

Express the following in radical form Select the correct answer below O O O O...

Accounting
1.2K views

When you state that symbols are not intrinsically connected to what they represent, you are...

Accounting
1.2K views

114.Define and outline the accounting required for each of the following types of agreements: a.Charitable...

Accounting
1.2K views

Harris Company manufactures and sells a single product. Required: 1. A partially completed schedule of...