6.) Hold all other factors constant and indicate whether each of the following situations generally signals...

6.) Hold all other factors constant and indicate whether each of the following situations generally signals good or bad news about a company: a) Increase in earnings per share b) Increase in price/earnings ratio c) Increase in current ratio d) Decrease in inventory turnover e) Increase in debt ratio f) Decrease in times interest earned coverage ratio

Expert Solution

A) Increase in earning per shares: This means there is increase in profit becasue if there is increase in profit than only incease in earning per shares- So this is good for company

B) Increase in Price / EArning Ratio = PE ratio will indicates that an investor is how much want to pay against earning of $ 1 in comapny. So increase in price / Earning ratio is good for company

C) Current RAtio: This ratio will indicate the current assets available against the current liabilitiy so increase in current ratio is good for commpany

d) Decrease in inventory turnover will indicate the how many times an inventory will rotate in company so decrease in inventory turover ratio means decrease in rollover of the inventory and so this is not good for company.

e) Increase in Debt Ratio : Debt Ratio will be indicates ratio of Debt against Total Assets so heigher debt means heigher debt and it will be not good for company. So Increase in debt ratio is not good for company.

f) Decrease in times interest earned coverage ratio: Interest earned coverage ratio interest before interest or taxes divide by interest expenses so this will show the interest coverage. So heigher interest coverage will be good for company and decrese in time interest earned coverage ratio.

ekkarill92 answered 1 year ago

Signify YES or NO as applicable for each of the following situations to indicate whether the...

Signify YES or NO as applicable for each of the following situations to indicate whether the situation would result in the net book value of bonds payable EQUALING the balance of the bonds payable ledger account. - A. B. The bonds were issues at face value. - A. B. The bonds were issued at a premium. - A. B. ...

a) In each of the following situations, indicate whether the potential bias is a selection bias,...

a) In each of the following situations, indicate whether the potential bias is a selection bias, a nonparticipation bias, or a response bias. Explain how this is an example of the particular type of bias in a complete sentence. In a college town, college students are hired to conduct door to door interviews to determine whether city residents think there should be a law forbidding loud music at parties. A magazine sends a survey to a random sample of its...

For each of the following situations, indicate whether ANOVA is appropriate; if not appropriate, the reason...

For each of the following situations, indicate whether ANOVA is appropriate; if not appropriate, the reason why not; and, if appropriate, the type of ANOVA that would be used (i.e., one-way, repeated measures, etc.): The independent variable (IV) is age group –people in their 60s, 70s, and 80s; the dependent variable (DV) is health-related hardiness, as measured on a 20-item scale. The IVs are ethnicity (white, African American, Hispanic, Asian) and birthweight status (<2,500 grams vs 2,500 grams); the DV...

C. For each of the following situations, (1.) indicate whether you agree or disagree with the...

C. For each of the following situations, (1.) indicate whether you agree or disagree with the financial reporting practice employed, then (2.) name the accounting concept being properly employed, or name the accounting concept being violated. (more than one answer may be appropriate) Loser Corporation did not disclose that it was the defendant in a material lawsuit because thetrial was still in progress. Alliant Semiconductor Corporation files quarterly and annual financial statements with the SEC. Reliant Pharmaceutical Inc. issues financial...

For each of the following, situations, indicate whether Kanban or MRP would be more effective. An...

For each of the following, situations, indicate whether Kanban or MRP would be more effective. An automobile plant producing three styles of vehicles (0.8 point) A custom job shop (0.8 point) A circuit board plant with 40,000 active part numbers (0.8 point) A circuit board with 12 active part numbers (0.8 point) A plant with one assembly line where all parts are purchased (0.8 point)

What is income? in each of the following situations indicate whether taxable income should be recognized....

What is income? in each of the following situations indicate whether taxable income should be recognized. a) Q purchased an older home for 30,000. Shortly after its purchase, the area in which it was located was designated a historical neighborhood, causing its value to rise to 50,000 b) R, a long term employee of XYC, purchased one of the company's cars worth 7,000 for 3,000. c) I borrowed 10,000 secured by property that had an adjusted basis of 3,000 and...

For each of the following situations, indicate whether the organization should recognize the described contributed services...

For each of the following situations, indicate whether the organization should recognize the described contributed services as revenue (offset by a corresponding expense). Briefly justify your response or identify key issues. 1. Nellie Wilson, the noted country-and-western singer, performs a benefit concert for the Save Our Farms Association, a political advocacy group. Wilson, who would normally charge $60,000 per concert, did not accept a fee. 2. Camp Chi-Wan-Da, a summer camp for disadvantaged youth, benefits from the services of four...

In each of the following situations, indicate whether a fixed (F), sequential (S), or discovery (D)...

In each of the following situations, indicate whether a fixed (F), sequential (S), or discovery (D) attributes sampling plan is being used. The audit team has determined the tolerable rate of deviation to be 5%, the risk of overreliance to be 10%, and the expected population deviation rate to be zero. Based on the risk of overreliance, expected population deviation rate and tolerable rate of deviation, the audit team examined a sample of 50 items before determining if additional...

In each of the following situations, indicate whether Walters, CPA is using unrestricted random (UR), systematic...

In each of the following situations, indicate whether Walters, CPA is using unrestricted random (UR), systematic random (SR), haphazard (H), or block (B) selection.? A. Walters created a list of all sales invoices to verify that they were supported by the appropriate shipping documents. Invoice number 15 was selected first for examination, followed by the invoices numbered 30, 45, 60, 75, 90, and so on until 40 invoices had been selected. ?B. To test the occurrence assertion regarding sales invoices,...

For each of the following statements, indicate whether it is true of all, some, or none...

For each of the following statements, indicate whether it is true of all, some, or none of the various kinds of peroxisomes. Please first answer the question, then provide an explanation. I would appreciate it if you could type the answer and handwriting is often difficult to read. 5. Contains peroxide-generating chemical reactions. a. It is true of all, because it is general property of peroxisomes. b. It is true of glyoxysomes and some animal peroxisomes, because only they contain...

Question