Explain the difference in the calculation of return on assets and cash return on assets. How can cash-based ratios supplement the analysis of ratios based on income statement and balance sheet information?
What will be an ideal response?
Return on assets has net income in the numerator while cash return on assets has cash flows from operations in the numerator. Both ratios divide by average total assets. Analysts often supplement their investigation of income statement and balance sheet amounts with cash flow ratios. Some cash flow ratios are derived by substituting net cash flows from operating activities in place of net income. Cash flow ratios offer additional insight in the evaluation of a company's profitability and financial strength.
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How do developing countries typically manage to keep currencies pegged at values that are too high? Who benefits from such an overvalued currency? Who is hurt by an overvalued currency?
What will be an ideal response?
A ________ occur(s) when a single security element failure defeats the overall security of a system
A) spot failure B) weakest link failure C) defense in depth departure D) critical failure
Artco Inc. is a C corporation. This year it earned $50,000 of taxable income and paid a $10,000 distribution (dividend) to Lily, its sole shareholder. Lily has a marginal tax rate of 24%. Due to the corporation's results and the distribution paid, the IRS will receive total taxes of
A) $12,000. B) $12,900. C) $13,500. D) $10,500.
When there's a net _____ in inventory, LIFO layer(s) are liquidated.
Fill in the blank(s) with the appropriate word(s).