Match each of the following terms with the appropriate formulas.A. Days' sales in inventory

B. Dividend yield
C. Total asset turnover
D. Inventory turnover
E. Return on common stockholders' equity
F. Gross margin ratio
G. Days' sales uncollected
H. Profit margin ratio
I. Times interest earned
J. Debt ratio 


__________ (1)Net income - Preferred dividendsAverage common stockholders' equity?__________(2)Accounts receivable  * 365?Net sales?__________(3)Total liabilities   Total assets?__________ (4)Income before interest expense and income taxes?Interest expense?__________ (5)Annual cash dividends per share?Market price per share?__________ (6)Net sales - Cost of goods sold?Net sales?__________ (7)Cost of goods sold Average inventory?__________ (8)   Net sales?Average total assets?__________(9)Net income   Net sales?__________(10)    Ending inventory  * 365 Cost of goods sold 

What will be an ideal response?


1. E; 2. G; 3. J; 4. I; 5. B; 6. F; 7. D; 8. C; 9. H; 10. A

Business

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Under international accounting standards regarding depreciation, an entity

a. must depreciate separately the components of a composite asset (e.g., land and building) separately. b. is not allowed to depreciate the components of a composite asset (e.g., land and building) separately. c. may depreciate separately the components of a composite asset (e.g., land and building) d. must use fair value accounting for property, plant, and equipment, thus eliminating the need for depreciation.

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A. The taxpayer's tax rate last year. B. The taxpayer's after-tax rate of return. C. The taxpayer's tax rate this year. D. The taxpayer's tax rate in future years. E. None of the choices are correct.

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A ________ is a two-party negotiable instrument that is an unconditional written pledge by one party to pay money to another party

A) bill of exchange B) check C) certificate of deposit D) promissory note

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