What does this data indicate about the company

Assignment Help Accounting Basics

Reference no: EM13135584

A company shows common size comparisons for two years on balance sheets. There is almost a two-fold increase in cash and equivalents, a 3% decrease in inventories, a small decrease in net property and equipment, and a large increase in retained earnings.

What does this data indicate about the company?

A. Its financial strength has improved.
B. Its financial strength has deteriorated.
C. It is failing to maintain its financial strength and should have serious concerns about its net income.
D. It is a stable company but it should be concerned about the performance of its assets in relation to income

Reference no: EM13135584

Questions Cloud

What price to charge in order to maximize profits : The company is unsure what price to charge in order to maximize profits. The price charged will also affect the demand. If fixed costs are $100,000 and the following chart represents the demand at various prices, what price should be charged in ..

What infromation does each source provide : The preparation of the Cash Flow statement is challenging and time consuming and unlike the other major financial statements, this one is not prepared from the adjusted trial balance.

Factors in cultural assimilation : You have new coworkers at your office name Jorge who is from Central America. He is unfamiliar with American customs and claims that he is undergoing culture shock and needs your help with the adjustment.

Short-cut in finding errors on the trial balance : Which of the following is not a short-cut in finding errors on the trial balance?

What does this data indicate about the company : A company shows common size comparisons for two years on balance sheets. There is almost a two-fold increase in cash and equivalents, a 3% decrease in inventories, a small decrease in net property and equipment, and a large increase in retained ea..

Determine the mean-median-range and midrange : The results, in tons of force required for breakage, are as follows: Determine the mean, median, range, and midrange. Calculate the mean absolute deviation (MAD).

Problem related to business transaction : Which of the following is not a business transaction? a) Erin deposits $15,000 in a bank account in the name of Erin's Lawn Service. b) Erin provided services to customers earning fees of $600.

How much heat (j) is required to raise the temperature : The specific heat of liquid bromine is 0.226 J/g-K. How much heat (J) is required to raise the temperature of 10.0 mL of bromine from 25.00C to 27.30C? The density of liquid bromine: 3.12 g/mL

What are each of stephen contributions to the fund : Stephen Bosworth, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on an 8% basis that will enable him to withdraw $30,500 per year on June 30, beginning in 2014 and continuing through 2017.

User Account

All Pages