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2 years ago

Based on the following information from ABC Company's financial analysis, which one of the following statements is NOT true?

Business

1 answer:

Vlada [557]2 years ago

5 0

Answer:

ABC Company

Financial Analysis:

A. The cost of goods sold has been increasing over the five years.

Explanation:

The gross profit ratio was 58.3% in year 1 and continued a downward spiral to 41.3% in year 5. This depicted an underlying fact that the cost of goods sold had been increasing over the years. The cost of goods sold influences the gross profit, and with the sales value remaining stable over the years, the ability of the company to generate enough profit out of its sales had been impaired greatly. Fortunately, for ABC Company, the increasing cost of goods sold did not increase alongside the fixed costs of running the business. This resulted to an increasing net profit ratio over the same period.

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Now, assume that Addison’s savings institution modifies the terms of her account and agrees to pay 5.8% in compound interest on

love history [14]

Answer:

Addison will have $ 1,661 in her account in nine years.

Explanation:

This problem requires us to calculate value of our investment of $ 1000 dollars after nine years. The interest on the investment is 5.8% compounded annually.

This problem can be solved by using simple compounding formula given below.

Future Value = Present Value (1+interest rate%)^-period

Future Value = 1,000 (1+5.8)^9

Future = $ 1,661

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2 years ago

Dorrance, the coach of the UNC women’s soccer team, has an eye for recruiting outstanding talent. In business language, this is

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Answer: Selective hiring

Explanation: In the selective hiring process the managers of an organisation sets a criteria for the job available. While recruiting the managers sticks to the criteria strictly and only those employees are hired who fits that particular criteria.

In the given case, Dorrance wants to recruit someone with excellent skills in soccer, thus we can conclude that she is doing selective hiring.

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2 years ago

For june, gold corp. estimated sales revenue at $600000. it pays sales commissions that are 4% of sales. the sales manager's sal

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Answer:

6000000 is alot and the total would be 24000

Explanation:

3 0

2 years ago

For example, the sticky price theory asserts that output prices of some goods and services adjust slowly to changes in the price

inysia [295]

This is a rare occurence in the market world and can lead to malfuunctions. Since the price level has dropped, we have that the catalogued items are overpriced with respect to the income and other basic goods. Hence, the demand for them will drop. In response, companies will also reduce their output.
Also, we have that the true rate of output and natural rate of output difference is proportional to the diffeerence between price levels. Since the actual price level is lower than the expected one, we have that the rate of output will fall below the natural rate of output for a while.

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2 years ago

A bank with a two-year horizon has issued a one-year certificate of deposit for $50 million at an interest rate of 2 percent. Wi

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Explanation:

The bank runs the danger that just before the second year, the short-term interest rate will increase, increasing its Lending value, but leaving untouched the interest income the bank gets from either the Treasury bill.

Annual interest revenue of 0.04* $50 million= 2 million and annual interest costs for the bank (0.02)* $50 million= 1 million, between 2 per cent to 4 per cent for the Treasury note.

The bank makes a profit of $2 million – $1 million = $1 million. If the interest rate rises 1 percent, the bank’s profit falls to

((0.04)* $50 million) – ((0.03) * $50 million) = $500,000.

7 0

2 years ago