Research Project Essay Example | Topics and Well Written Essays - 500 words - 1

Research Project - Essay Example Hence, Google Inc. Company is on average. Gross profit margin shows the percentage for availability of revenue to cover cost of operating and expenditures. The gross profit margin has increased from 43.4% to 58.9% for years 2013 and 2014 respectively. Hence, there is improved profit margin. It analyses financial statements that are operated on a single period. On income statements, correlation is represented by percentage of each account that is separate to net sales. Express accounts apart from net sales as a percentage of net sales. Net income is calculated as a percentage of net sales that has not been used on expenses. It makes comparison of data for two periods. Users of financial statements review changes in the data that much like an indicator. Analysts determine for growth in assets, net income, revenue, in addition to decreasing in liabilities and expenses. In determining changes in absolute dollar need users to deduct base figure from the current number. To determine percentage need users to divide by the value now and multiply by 100. Helps to review financial statements of three or more years. The earliest years in the data represent the base year, and dollars can be used for consecutive periods. For comparability, analysts use percentages. Improved financial statements include decreased expenses and an increase in

Response to Comments Essay Example | Topics and Well Written Essays - 250 words

Response to Comments - Essay Example All accountants and financial analysts realize that money losses value over time due to inflation. Back in the 1960’s the money these people had was worth twice as much as today’s money because our elders had greater buying power due to the fact money had not depreciated like it has in today’ economy. DQ2 When a company is using the NVP value method a firm should only accept a project if the project has a NPV above cero. In your response I believe you mentioned that a company could do badly irrelevant of the NPV being above cero. Well this could happen because the NPV analysis is limited to the project that the analysis is evaluating. If a firm has financial troubles that existed irrelevant of the results associated with the NPV of a project then a firm could go down under. The NPV analysis is not a tool that can be used to evaluate the overall standing of a firm. The scope of an NPV analysis is limited to the scope of the project that the financial tool is used for (Besley & Brigham, 2000). The NPV tool can help managers determine the viability of a capital project. References Besley, S., Brigham, E. (2000). Essential of Managerial Finance (12th ed.). Fort Forth: The Dryden Press.