Sophia Finance Milestone 1a Principles of Finance complete update with correct answers %

Sophia Finance Milestone 1a Principles of Finance complete update with correct answers % Sophia Principles of Finance Milestone 1 1 For which company can trend analysis be most useful? A ride-sharing company whose business model has been rapidly adapting to market conditions An insurance company that has recently been subject to new accounting laws An established hotel company that has made very few changes to its business model A manufacturing company that has recently expanded into mining as well CONCEPT Using Financial Ratios for Analysis 2 Xander is looking for ways to reduce his non-operating expenses to improve his company's overall financial performance, so he consults his most recent income statement. Which of the following should he focus on? Wages Amortization Income taxes Depreciation CONCEPT The Income Statement 3 If Company A has a lower debt ratio than Company B, then Company A is likely to have than Company B. a greater ability to borrow a higher level of financial risk more total assets less financial flexibility CONCEPT Debt Management Ratios 4 Thomas is concerned about his company's ability to pay off its short-term debts. If he wants to know more about his company's liquidity, what should he do? Calculate his total liabilities Calculate his total assets Calculate his net working capital Calculate his debt to equity ratio CONCEPT The Balance Sheet 5 If equity is $2 million and total revenue is $1.3 million, then ROE is . incalculable without net profit data 65% incalculable without EBIT data ...................................................continued............................................................