Which of the following statements is (are) correct?

Excerpts from Andre Company’s December 31, 2024 and 2023, financial statements are presented below: 20242023Accounts receivable$ 40,000$ 36,000Inventory28,00035,000Net sales190,000186,000Cost of goods sold114,000108,000Total assets425,000405,000Total stockholders’ equity240,000225,000Net income32,50028,000 What is the profit margin for 2024?Note: Round your answer to one decimal place.

Excerpts from Nationwide Company’s December 31, 2024 and 2023, financial statements are presented below: 20242023Accounts receivable$ 80,000$ 72,000Inventory84,00070,000Net sales400,000372,000Cost of goods sold254,000216,000Total assets850,000810,000Total stockholders’ equity500,000450,000Net income75,00056,000 What is the profit margin for 2024?Note: Round your answer to one decimal place.

The balance sheet of Orion Medical Equipment reports total assets of $450,000 and $550,000 at the beginning and end of the year, respectively. The cash return on assets for the year is 10%. What is Orion’s net operating cash flows for the year?

Excerpts from Nationwide Company’s December 31, 2024 and 2023, financial statements are presented below: 20242023Accounts receivable$ 80,000$ 72,000Inventory84,00070,000Net sales400,000372,000Cost of goods sold254,000216,000Total assets850,000810,000Total stockholders’ equity500,000450,000Net income75,00056,000 What is the asset turnover for 2024?Note: Round your answer to one decimal place.

Excerpts from Nationwide Company’s December 31, 2024 and 2023, financial statements are presented below: 20242023Accounts receivable$ 89,000$ 77,000Inventory94,00078,000Net sales450,000383,000Cost of goods sold256,000217,000Total assets810,000755,000Total stockholders’ equity505,000430,000Net income75,00053,000 What is the return on assets for 2024?Note: Round your answer to one decimal place.

A low current ratio indicates that a company has sufficient current assets to pay current liabilities as they become due.

Which of the following is an example of horizontal analysis?

Excerpts from Nationwide Company’s December 31, 2024 and 2023, financial statements are presented below: 20242023Accounts receivable$ 45,000$ 40,000Inventory32,00044,000Net sales196,000195,000Cost of goods sold121,000118,000Current liabilities153,000129,000Interest-bearing debt215,000237,000Total stockholders’ equity248,000229,000Net income37,50035,000 What is the debt to equity ratio for 2024?

Under the indirect method, an increase in inventory is added to net income and a decrease in inventory is subtracted from net income to arrive at net cash flows from operating activities.