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numbered item. 1. Net profitmargin A. Net income ÷ Net sales revenue. 2. Invento

ID: 2447375 • Letter: N

Question

numbered item.

       1. Net profitmargin                     A. Net income ÷ Net sales revenue.

       2. Inventoryturnover ratio       B. (Net salesrevenue - Cost of goods sold) ÷ Net sales revenue.

       3. Cash coverageratio               C. Current assets ÷ Current liabilities.

       4. Fixed assetturnover               D. Cost of goods sold ÷ Average inventory.

       5. Capitalacquisitionsratio          E. Netcredit sales revenue ÷ Average net receivables.

       6. Return onequity                     F. Net cash flows from operating activities ÷ Netincome.

       7. Currentratio                            G. Net income ÷ Average number of common sharesoutstanding.

       8. Debt-to-assetsratio                 H. Total liabilities ÷ Total assets.

       9. Price/earningsratio                 I. (Net income + Interest expense + Income tax expense)÷  Interest expense.

       10. Receivablesturnover ratio   J. Net cash flows from operatingactivities ÷ Cash paid for  property, plant,and equipment

       11. Earningsper share               L. Netincome ÷ Average total stockholders’ equity.

       12. Quality ofincome ratio         K. Current market price per share ÷ Earnings per share.

       13. Gross profitpercentage         M. Netcash flows from operating activities (before interest and taxes)÷ Interest paid.
       14. Times interestearned           N. Net sales revenue ÷ Average net fixed assets.

Explanation / Answer

1 A 2 D 3 I 4 N 5 J 6 L 7 C 8 H 9 K 10 E 11 G 12 F 13 B 14 M