Accounting Questions

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Question 1
Ratios:
Ratios provide the users of financial statements with a great deal of information about the entity.  Do ratios tell the whole story?  How could liquidity ratios be used by investors to determine whether or not to invest in a company?   

Question 2

 

 

Year Ending December 2012

Year Ending December 2011

Year Ending December 2010

Revenue

40,00

35,00

33,00

Operating Expense

 

 

 

Salarie

15,00

10,00

9,00

Maintenance and Repair

6,00

9,00

10,00

Rental Expens

2,50

2,50

2,50

Depreciatio

2,00

2,00

2,00

Fue

4,00

3,50

2,50

Total Operating Expense

29,50

27,00

26,00

Operating Incom

10,50

8,00

7,00

Sales and Administrative Expense

6,00

4,00

3,00

Interest Expens

2,50

2,00

1,00

Net Incom

2,00

2,00

3,00

Profit MarginAbove is a comparative income statement for Cecil, Inc. for the years 2010, 2011, and 2012.  Calculate the net-profit margin for each of these years.  Comment on the profit margin trend.

 

Each question 250 words or more. Thank you.

  • 11 years ago
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