Extract of sample Ways To Increase Return On Assets
Since both sets of figures show similarity in the total expenses at £15,400 each, although Set B fails to present the break down of the expenses, then using the said expenses as criterion could not be deemed to indicate a material difference for purposes of inferring which of the two would or would not show a true and fair value. It is, therefore, the matter of the closing stock that will settle the issue of which set does or does not present a true and fair view since it is in the value of the closing where the two sets of figures materially differ. By taking the difference of £14,000 and £10,000, one will get a difference of £4,000 which represents about 40% and which could be now considered by auditors as material misstatement in the financial statement. As to why it affects materially the financial statements will be seen in the income statement and the balance sheet. The income statement is affected because closing stock or inventory takes the nature of revenues in the income statement as will be explained later. The balance sheet is also affected because the closing stock is part of the current assets and total assets which are parts the computation of liquidity using current ratio and the profitability using the return on assets. Since it affects the net income, the other ratios where net income is used will also be affected. As to how the material misstatement will affect the profitability ratios may be illustrated as follows: First, the closing stock is important in the computation of gross profit ratio (GPR) which is computed by dividing gross profit by the total sales. It must be noted that the closing stock affects the value of the cost of sales to be deducted from total sales to arrive at the gross profit.
This essay “Ways To Increase Return On Assets” investigates what for management the increase in return on assets, which measure the capacity the company to produce more profits in relation to assets.The increase in the assets brought by the increasing net profits with no additional investment…
List the bonds in the most likely order of the interest rates (yields to maturity) of the bonds from highest to lowest. Explain your work. Answer: X: A corporate bond rate BBB W: A corporate bond rate AAA Y: A corporate bond rated AAA with a shorter time to maturity than bonds W and X Z: A corporate bond rated AAA with the same time to maturity as bond Y that trades in a more liquid market than bonds W, X, or Y There has always been a strong relationship between the risks attached to a security with the return earned on a security, and this risk-return trade off tells us return which one should expect on a security which has high level of uncertainty (high risk) or low level of uncer
I will apply the steps required for formulating the company's strategy according to the framework proposed by Johnson and Scoles(1999).
Strategic Analysis is concerned with the understanding the strategic position f the organization in terms f its external environment , internal resources and competences, and the expectations and influence f stakeholders defined by Johnson and Scoles(1999).
ludes involvement in academic and social or extracurricular activies and is considered crucial for achieving positive academic outcomes and preventing dropping out.’ (Fredricks, Blumenfeld & Paris 2004) Emotional engagement involves the response of the student to all
The car manufacturing plant of Hyundai Motor is located in South Korea. In line with the global financial success of Hyundai, the company opened its second plant in India. (AFP, 2008) Today, Hyundai Motor Company is considered as one of the top ten global automakers.
The coupon rate can be defined as the interest rate stated on a bond (Investorwords, 2011) The return of the bond is 4% (400/10000). Due to the fact that the inflation rate for the year was 5% the investor must calculate the real return on
Another way of looking at this is that, the return will be high if there is a possibility of losing. A corporate bond has various risks attached to it and some of the prominent ones include maturity risk, default risk, liquidity and
This paper therefore will focus on the research questions that will be used to study on ways of increasing revenue of General Motors Company.
The study will focus on the following research questions. Which are the best emerging markets that
1 pages (250 words)Research Paper
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