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28 Sep 2019
E13-5 Matching Each Ratio with Its Computational Formula LO 13-4, 13-5, 13-6, 13-7 Match each definition with its related ratios or percentages by selecting the appropriate letter in the drop down provided. Definitions: Ratios or Percentages Definitions A. Net Income (before extraordinary items) ÷ Net Sales 1 Profit margin B. Days in Year ÷ Receivable Turnover ratio 2 Inventory turnover ratio C. Net Income ÷ Average Stockholdersâ Equity 3 Average collection period D. Net Income ÷ Average Number of Shares of Common Stock Outstanding 4 Dividend yield ratio E. Return on Equity â Return on Assets 5 Return on equity F. Quick Assets ÷ Current Liabilities 6 Current ratio G. Current Assets ÷ Current Liabilities 7 Debt-to-equity ratio H. Cost of Goods Sold ÷ Average Inventory 8 Price/earnings ratio I. Net Credit Sales ÷ Average Net Receivables 9 Financial leverage percentage E J. Days in Year ÷ Inventory Turnover Ratio 10 Receivable turnover ratio K. Total Liabilities ÷ Stockholdersâ Equity 11 Average daysâ supply of inventory L. Dividends per Share ÷ Market Price per Share 12 Earnings per share M. Market Price per Share ÷ Earnings per Share 13 Return on assets N. [Net Income + Interest Expense (net of tax)] ÷ Average Total Assets 14 Quick ratio O. Cash from Operating Activities (before interest and taxes) ÷ Interest Paid 15 Times interest earned P. Net Sales Revenue ÷ Net Fixed Assets 16 Cash coverage ratio Q. (Net Income + Interest Expense + Income Tax Expense) ÷ Interest Expense 17 Fixed asset turnover ratio
E13-5 Matching Each Ratio with Its Computational Formula LO 13-4, 13-5, 13-6, 13-7 | |||||||
Match each definition with its related ratios or percentages by selecting the appropriate letter in the drop down provided. | |||||||
Definitions: | Ratios or Percentages | Definitions | |||||
A. | Net Income (before extraordinary items) ÷ Net Sales | 1 | Profit margin | ||||
B. | Days in Year ÷ Receivable Turnover ratio | 2 | Inventory turnover ratio | ||||
C. | Net Income ÷ Average Stockholdersâ Equity | 3 | Average collection period | ||||
D. | Net Income ÷ Average Number of Shares of Common Stock Outstanding | 4 | Dividend yield ratio | ||||
E. | Return on Equity â Return on Assets | 5 | Return on equity | ||||
F. | Quick Assets ÷ Current Liabilities | 6 | Current ratio | ||||
G. | Current Assets ÷ Current Liabilities | 7 | Debt-to-equity ratio | ||||
H. | Cost of Goods Sold ÷ Average Inventory | 8 | Price/earnings ratio | ||||
I. | Net Credit Sales ÷ Average Net Receivables | 9 | Financial leverage percentage | E | |||
J. | Days in Year ÷ Inventory Turnover Ratio | 10 | Receivable turnover ratio | ||||
K. | Total Liabilities ÷ Stockholdersâ Equity | 11 | Average daysâ supply of inventory | ||||
L. | Dividends per Share ÷ Market Price per Share | 12 | Earnings per share | ||||
M. | Market Price per Share ÷ Earnings per Share | 13 | Return on assets | ||||
N. | [Net Income + Interest Expense (net of tax)] ÷ Average Total Assets | 14 | Quick ratio | ||||
O. | Cash from Operating Activities (before interest and taxes) ÷ Interest Paid | 15 | Times interest earned | ||||
P. | Net Sales Revenue ÷ Net Fixed Assets | 16 | Cash coverage ratio | ||||
Q. | (Net Income + Interest Expense + Income Tax Expense) ÷ Interest Expense | 17 | Fixed asset turnover ratio | ||||
Irving HeathcoteLv2
28 Sep 2019