a. Overstate the current ratio. b. Understate the current ratio. c. No effect on the current ratio.
d) The equilibrium interest rate increases to bring desired investment into equilibrium with the reduced quantity of national saving. e) The equilibrium quantity of investment is reduced via the increase in the interest rate by an amount equal to the increase in government spending. Question 5 (15 marks) a) capital is added. No, MPK does not diminish because it does not decline as more is also acceptable. b) L = 100: L = 110: L = 120: 0. .
Looking at the data net sales increased over the five period from $2,097,000.00 to $5,218,007.04 increase $3,121.007. Totaling gross profit went from 816,000.00 to $2,030,469.12 increase of $1,214,469.10. In the above pro forma balance sheet, it has been established that one has assumed that current gross profit has increased in the ratio of gross profits. A reduction in any of the following selling expenses or administration expense will allow the company to retain more of its earnings and profit margin, and therefore will increase its need for external funding. The dividend disbursement rate is 25 percent of earnings, and the balance in retained earnings at the end of 2012 was $1,436,833.09.
Current Ratio 2011 = Current Assets / Current liabilities Gaps Current Ratio = 4,309 / 2,128 = 2.0249 This means that The Gap Inc. is capable of paying its short-term liabilities two times by selling its current assets. What was the current ratio for 2010? How did the current ratio change? Current Ratio 2010 = 3,926 / 2,095 = 1.8739 The current Ratio for The Gap Inc. Increase from 1.8739 to 2.0249 What is the implication of that change? The current ratio increased because there was a considerable increase in Cash and other current assets.
If production is kept the same, the company is predicted to sell every unit produced which would avoid a stockpile of inventory and also safeguarding an extra 5,000,000 units in ending inventory in case sales go above 30,000,000. In the end, B.E. Company’s net income would increase by a substantial amount due to an increase in sales rather than an increase in ending
------------------------------------------------- INCOME STATEMENTS REVENUE Net Sales increased nicely from year 6 to year 7 by $1,495,000.00, or 33.3%. This shows a strong increase. From years 7 to 8, net sales decreased by $897,000.00 or -15%. This exhibits weakness. Cost of Goods Sold increased from year 6 to year 7 by $1,048,000.00, or 31.80%.
The $50 million project, although would double the company’s debt, but would also greatly increase its customer concentration. Q2. HPL had not initiated a project of such ($50 million) magnitude in over a decade. The expansion of the business will have a significant impact in the company. We can consider three metrics to analyze it: long-term debt, revenue and book value.
C. Delivery has occurred or services have been rendered. D. The seller's price to the buyer is fixed or determinable. 3. "Bill and Hold" refers to an arrangement where A. Sales are recorded but are not shipped.
Looking at the differences between the first regression analysis and this one, I have concluded that our Adjusted R² value increase but not much if anything, even deleting the least significant variable, our correlation relationship is only 64% and weak. The p-value is still low, less than our alpha of .10, and the F-model is still a large number (256.62). The coefficients stayed the same, however, out p-values changed. The p-value for our Intercept changed from 6.25E-09 to 2.03E-09, the p-value for DAYS changed from 3.66E-64 to 3.02E-65, and our p-value for PHYS changed from .4065 to .4044. Even though the p-value for our Intercept and DAYS increased, it didn’t affect the significance of our model.
1. Assessment of changes in Coke’s financial statements between 1996-2010. Coke has done well from 1996 to 2010 based on the financial statements reviewed. The company has grown revenue significantly while still controlling the cost of goods and assets. The overall costs of assets required for operating expenses has reduced as a percent of revenue.