Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the coastal company had revenues of $120,000 in th

The Coastal Company had revenues of $120,000 in the last fiscal period. The cost-of-goods were...

50.1K

Verified Solution

Question

Accounting

The Coastal Company had revenues of $120,000 in the last fiscal period. The cost-of-goods were $62,000, operational expenses were $15,000, interest was $8,000 and tax was $11,900. What is the return on equity if the companys total assets and total liabilities are $630,000 and $320,000, respectively?

Group of answer choices

3.7%

7.2%

7.5%

13.9%

Investment analysts employ ratio and trend analysis when assessing a companys financial statements. Some trends reveal company improvement and others suggest possible red flags trends that reveal possible deterioration in operational success. Which of the following would suggest a red flag?

(1)Rising accounts receivable versus sales ratio

(2)Rising inventory versus sales ratio

(3)Rising debt versus total asset ratio

(4)Rising shareholder equity to total assets ratio

Group of answer choices

1 and 2

3 and 4

2 and 4

1, 2 and 3

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

Basic Math
1.2K views

Suppose weights of olives that are class distributed with a mean weight of 7 5...

Finance
1.2K views

A corporate bond matures in 14 years. The bond has an 8 percent coupon and a...

Programming
1.2K views

I. Create the class Item with the following members:   1. id, a protected variable of type...

Advance Math
1.2K views

Show that radical 3, radical 5, radical 7, radical 24, and radical 31 are not rational...

Physics
1.2K views

Electrical Potential 164 brigh how elect 4 1 6A Explain how electrical potential relates to...

Basic Math
1.2K views

Entrepreneur Work Job Part time Jobs O IV III II I O III IV II...

Basic Math
1.2K views

A college student realized that he was spending too much money on video games. For...

Calculus
1.2K views

2 Prove the Leibniz formula for n times differentiable functions f n fg n 1...

Algebra
1.2K views

1 Find the inverse of the relation 1 0 2 1 3 0 4 2

Accounting
1.2K views

2) The manager of a revenue center is responsible for generating pr A) TRUE B)...

Accounting
1.2K views

Using the following partial income statement, what is the company's contribution margin? Sales revenue (4.500...

Accounting
1.2K views

What are the fundamental differences between a defined contribution pension plan and a defined benefit...