question 155
Multiple Choice
The following information pertains to Ortiz Company.Assume that all balance sheet amounts represent both average and ending balance figures.Assume that all sales were on credit. Assets Cash and short-term investments Accounts receivable (net) Inventory Property, plant and equipment Total Assets Liabilities and Stockholders’ Equity Current liabilities Long-term liabilities Stockholders’ equity-common Total Liabilities and Stockholders’ Equity Income Statement Sales Cost of goods sold Gross profit Operating expenses Net income Number of shares of common stock Market price of common stock Dividends per share $45,00025,00020,000310,000$400,000$50,00090,000260,000$400,000$300,00066,000$234,00027,000$207,0006,000$20.50 What is the profit margin for Ortiz?
Analyze the impact of sales, assets, and liabilities on financial ratios and firm performance.
Calculate changes in net cash provided by different financing and investment activities.
Evaluate the effect of debt financing on firm’s return on equity (ROE) and other profitability ratios.
Determine the cash position of a firm using cash flow data.
Definitions:
Skewed Right
A distribution of data showing the majority of values on the left, tailing off to the right.
Re-Expressing
The mathematical transformation of data in statistics to meet the assumptions of statistical models or to improve interpretability.
Assets
Resources owned by a person or entity considered valuable and can be used to meet debts, commitments, or legacies.
Re-Expression
The process of transforming data using a mathematical function to achieve a more linear relationship between variables.