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...

90.2K

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

Biology
1.2K views

Microscope Question: What type of microscopy would you use for each situation situation and why and...

Civil Engineering
1.2K views

A team of students prepared an oral defense for their design project contained only the following...

Physics
1.2K views

4 kg 3 A fan of moment of inertia 2 4 kgm2 is to run...

Physics
1.2K views

25 A small sphere of radius r having charge q is 25 r enclosed by...

Geometry
1.2K views

11 5 20 4x 5 85 40 Solve for x

Calculus
1.2K views

What is the value of the first term for the geometric series described T an...

Calculus
1.2K views

Directions Consider the following function f x at a 3 Part 1 Difference Quotient A...

Accounting
1.2K views

20 of 25Could you help me plz?

Accounting
1.2K views

Hello, Please help, Maxwell is a fifth-grade school teacher who earned...

Accounting
1.2K views

Problem 5.8AA Perlodic: Income comparlsons and cost flows LO A1, P3 QP Corp. sold 5,500...

Finance
1.2K views

Compare and contrast the differences between internal and external sources of financing. Provide examples of...

Accounting
1.2K views

Edge Company produces two models of its product with the same machine. The machine has...