Matching
Match each of the following formulas with the appropriate terms
Premises:
(Ending inventory/ cost of goods sold) x 365
Annual cash dividends per share /Market price per share
Net sales/ Average total assets
Cost of goods sold /Average inventory
(Net income - preferred dividends)/ Average common stockholders' equity
(Net sales - Cost of goods sold)/ Net sales
(Accounts receivable / Net sales) x 365
Net income /Net sales
Income before interest expense and income taxes/ Interest expense
Total liabilities /Total assets
Responses:
Total asset turnover
Days' sales in inventory
Days' sales uncollected
Debt ratio
Times interest earned
Return on common stockholders' equity
Gross margin ratio
Dividend yield
Inventory turnover
Profit margin ratio
Correct Answer:
Premises:
Responses:
(Ending inventory/ cost of goods sold) x 365
Annual cash dividends per share /Market price per share
Net sales/ Average total assets
Cost of goods sold /Average inventory
(Net income - preferred dividends)/ Average common stockholders' equity
(Net sales - Cost of goods sold)/ Net sales
(Accounts receivable / Net sales) x 365
Net income /Net sales
Income before interest expense and income taxes/ Interest expense
Total liabilities /Total assets
Premises:
(Ending inventory/ cost of goods sold) x 365
Annual cash dividends per share /Market price per share
Net sales/ Average total assets
Cost of goods sold /Average inventory
(Net income - preferred dividends)/ Average common stockholders' equity
(Net sales - Cost of goods sold)/ Net sales
(Accounts receivable / Net sales) x 365
Net income /Net sales
Income before interest expense and income taxes/ Interest expense
Total liabilities /Total assets
Responses:
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