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Quiz: Final Exam-Partx avian.instructure.com/courses/5380/quizzes/5949/take curr

ID: 2598001 • Letter: Q

Question

Quiz: Final Exam-Partx avian.instructure.com/courses/5380/quizzes/5949/take current ratio I Choose ] total liabilities/total assets Net income/Net sales Gross profit/net sales COGS/Inventory Net sales/average accounts receivable Net sales/avg. total assets Net income/average total assets current assets less inventory divided by current liabilities Total equity/total assets current assets/current liabilities price per common share/EPS Sales divided by average inventory total liabilities/total equity cash dividends per share/price of common share acid test ratio A/R turnover Inventory turnover Total asset turnover Debt ratio Equity ratico I Choose ] debt to equity ratio Choose profit margin ratio [ Choose ] Gross margin ratio [ Choose Return on total assets Choose ] PE ratio I Choose I 20

Explanation / Answer

Current ratio = Current assets/Current liabilities

A/R turnover = Net sales/Average accounts receivable

Inventory turnover = COGS/inventory

Total asset turnover = Net sales/Average total assets

Debt ratio = Total liabilities/Total assets

Equity ratio = Total equity/Total assets

Debt to equity ratio = Total liabilities/Total equity

Profit margin ratio = Net income/Net sales

Gross margin ratio = Gross profit/Net sales

Return on total assets = Net income/Average total assets

P/E ratio = price per common share/EPS