A question about financial performance.Needs the answer within 2 hrs. Thx a lot!

Question

A question about financial performance.Needs the answer within 2 hrs. Thx a lot!!!!

Company Xcel Lld anources an increase of 10% in ret proft for the year to $1.700.000. As a ptertal imestor n the company: a) What does this announcement tell you? b) What other intormation do you require for docdiding whether or not to invest in the company? a) What does this announcement tell you? A. The announcement tels us tat the oonpany has 10% more cash on hand than it had in ta2 previos year. B. Thie announcement tels tat the difference between th ownars, dam in re ompany and the creditors' claim in to mpany has increased over te past year. · The announcement telsa tal the rate of growth of tha owners' claim in tv company as a resuk oraperations has rereased ower the past year o. The annoncernern tels us tal the earers' cam ithe campany has decreased ower the past year. b) What other iformation do you require for deciding whathar or not to invest in the compamy? A i is mportan to see the income statement of 0 mpany to de aminie whether the oompar has mor expenses tan it has rr nu es it would also be he ful to know the number of emplo ees hat the company ha O B. It is important to determine the depreaaton method that the company uses as wel as how old its deprecable assets are, to deemme how much t is losng to depreciator. . It is im or ant to see the statemert of tnancial position of the company to determine wether he company is able to oover all of ts liabines. It would also be hepful to know the compan s plans for future growth. It is importart to see the statement of cash flows of the oor has existed D. perydetermine whe ef the co pary spent more money than it takes in.R would so be he ful to know how I g the c rrpary Cick to select your answer

Explanation / Answer

a) Answer : Option   ( A )

The announcement tells us that the company has 10% more cash on hand than it had in the previous year

b) Answer : Option ( C )

It is important to see statement of financial position of the company to determine whether the company is able to cover all of its liability. It would also be helpful to know the company's plans for future growth.

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