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Question 22 Net sales divided by average accounts receivable is the: Answer Days

ID: 2343407 • Letter: Q

Question

Question 22



Net sales divided by average accounts receivable is the:
Answer


Days' sales uncollected.

Average accounts receivable ratio.

Current ratio.

Profit margin.

Accounts receivable turnover ratio.
1 points
Question 23



Net income divided by net sales is the:
Answer


Return on total assets.

Profit margin.

Current ratio.

Total asset turnover.

Days' sales in inventory.
1 points
Question 24



Annual cash dividends per share divided by market price per share is the:
Answer


Price-earnings ratio

Price-dividends ratio.

Profit margin.

Dividend yield ratio.

Earnings per share.
1 points
Question 25



The average number of times a company's inventory is sold during an accounting period, calculated by dividing cost of goods sold by the average inventory balance, is the:
Answer


Accounts receivable turnover.

Inventory turnover.

Days' sales uncollected.

Current ratio.

Price earnings ratio.
1 points
Question 26



A company had a market price of $37.50 per share, earnings per share of $1.25, and dividends per share of $0.40. Its price-earnings ratio equals:
Answer


3.1.

30.0.

93.8.

32.0.

3.3.
1 points
Question 27



A company reports basic earnings per share of $3.50, cash dividends per share of $0.75, and a market price per share of $64.75. The company's dividend yield equals:
Answer


1.16%.

2.14%.

4.67%.

5.41%.

18.50%.

Explanation / Answer

22) Accounts receivable turnover ratio 23) Profit margin 24) Dividend yield ratio 25) Inventory turnover ratio 26) Price-earnings ratio = Market price per share / Earning per share                                     = $37.50 / $1.25                                     = $30 27) Dividend yield = Dividend per share / Market price per share                              = $0.75 / $64.75                              = 1.16%
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