ABC Co.'s current ratio is greater than 1. Purchasing raw materials on credit would: A. increase the current ratio B. decrease the current ratio C. increase net working capital D. decrease net working capital E. B and D
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- 4. Which of the following transactions causes an increase in working capital? a. Sale of merchandise on credit at a price above cost. b. Sale of marketable securities at a price below cost. c. Collection of an account receivable. d. Return to supplier of defective merchandise purchased on credit. Full credit allowed by supplier.46. Revenue, cost, and profit. The price-demand equation and the cost function for the production of HDTVS are given, respectively, by x 9,000 - 30p and C(x) = 150,000 + 30x where x is the number of HDTVS that can be sold at a price of $p per TV and C(x) is the total cost (in dollars) of produc- ing x TVs.A decrease in Selling and Administrative Expenses woulddirectly impact what ratio?a. Fixed asset turnover ratio. c. Current ratio.b. Times interest earned. d. Gross profit percentage.
- Mark up can be calculated by the formula; a. Markup = Cost + Expenses b. Markup = Cost + Profit c. Markup = Selling price + Cost d. Markup = Expenses + ProfitWhich of the following ratios is always the lowest? a. The net profit margin b. The gross profit margin c. The operating margin d. The EBITDA ratioWhich one of the following will decrease net working capital? Select one: a. A decrease in accounts payable. b. A sale of inventory at a profit. c. A sale of a fixed asset for cash. d. An increase in accounts receivable. e. An increase in accounts payable.
- c. Calculate the profitability ratio which includes gross profit margin, operating profit margin, net profit margin, and NOPAT marginCalculate the following ratios: 1. Return on Capital Employed (ROCE) 2. Current Ratio 3. Gearing Ratio 4. Price/Earnings (P/E) RatioLet P(x) be the annual profit for a certain product, where x is the amount of money spent on advertising. (a) Interpret P(0) (b) Describe how the marginal profit changes as the amount of money spent on advertising increases. (c) Explain the economic significance of the inflection point.
- Fined out: 1. Net non interest margin 2. Net profit marginWhich of the following is operating expenses ? a) Administrative expenses ratio b) Selling and Distribution expenses ratio c) Factory expenses ratio d) Finance Expenses ratio Select one: a. a, b and c b. a, b and d c. a, c and d d. a, b, c, dDirection: Read carefully and answer the questions below. Encircle the letter of the correct answer. 1. Which of the following is an example of a variable cost? а. interest b. ingredients с. insurance d. lease 2. What type of cost varies depending on the quantity of products being produced? а. fixed b. net sales с. total d. variable 3. Which among the following concepts is usually seen on the top item in an income statement from which all costs and expenses is subtracted to arrive at net income? a. fixed cost b. net sales с. total cost d. variable cost 4. When do we obtain the break-even point? When the fixed cost is equal to the total cost When the total cost is equal to the variable cost When the variable cost is equal to the fixed cost d. When the number of units of goods sold covers the all the costs а. b. с. 5. Which of the following is NOT true? а. The fixed cost does not vary over time. b. The total cost is the sum of the fixed cost and the variable cost. с. The total cost is…