Question;DiscussionsTo participate in the following discussions, go to this week's Discussion link in the left navigation.1. RatiosRatios 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?Guided Response:Let at least two of your peers know how debt service ratios can be used by a lender in determining whether or not to lend money to a company.2. Profit MarginYear Ending December 2012 Year Ending December 2011 Year Ending December 2010Revenues 40,000 35,000 33,000Operating Expenses Salaries 15,000 10,000 9,000Maintenance and Repairs 6,000 9,000 10,000Rental Expense 2,500 2,500 2,500Depreciation 2,000 2,000 2,000Fuel 4,000 3,500 2,500Total Operating Expenses 29,500 27,000 26,000Operating Income 10,500 8,000 7,000Sales and Administrative Expenses 6,000 4,000 3,000Interest Expense 2,500 2,000 1,000Net Income 2,000 2,000 3,000Above is a comparative income statement for Cecil, Inc. for the years 2010, 2011, and 2012. Calculate the profit margin for each of these years. Comment on the profit margin trend.
Paper#51366 | Written in 18-Jul-2015Price : $22