A Financial Statement That Includes a Percentage Breakdown of Each

question 110

Multiple Choice

A financial statement that includes a percentage breakdown of each item is known as which of the following?

• A) Income statement
• B) Common-size financial statement
• C) Statement of retained earnings
• D) Statement of cash flows

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Definitions:

Capital Intensity Ratio

The dollar amount of assets required to produce a dollar of sales. The capital intensity ratio is the reciprocal of the total assets turnover ratio.

AFN Formula

The Additional Funds Needed formula, used to calculate the additional working capital required to support a firm's growth in sales.

Debt/Assets Ratio

A financial metric indicating the proportion of a company's assets that are financed by debt.

Dividend Payout Ratio

A financial metric that measures the percentage of earnings distributed to shareholders in the form of dividends.