Financial & Management Accounting
This query is : Resolved
23 January 2008
1. "Profit margin and turn over ratios vary from one industry to another" what industry characteristic account for these variations? Give some contrasting examples to illustrate the answer.
2. Paymenton on a long term note payable affects working capital, whereas payment on a short term note payable does not why?
2. Paymenton on a long term note payable affects working capital, whereas payment on a short term note payable does not why?
23 January 2008
please help in solving this questions
23 January 2008
1.What exactly you mean by turnover ratio?
Are you meaning profit margin on turnover?
2. Payment towards long term note is extinguishing a longterm liability. If the long term liability is reduced, backing of asset by a long term funding is reduced causing a fall in working capital margin.
Are you meaning profit margin on turnover?
2. Payment towards long term note is extinguishing a longterm liability. If the long term liability is reduced, backing of asset by a long term funding is reduced causing a fall in working capital margin.
27 February 2008
This not only varies from industry to industry, but also from organisation to organisation even within the same industry
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