The Following Codes Are Used to Compute the Ratios Below

question 79

Essay

The following codes are used to compute the ratios below:
$\begin{array}{ll}\text { A } & \text { Accounts receivable (beginning) } \\\mathrm{B} & \text { = Net income } \\\mathrm{C} & \text { = Cash } \\\mathrm{D} & \text { = Earnings per share } \\\mathrm{E} & \text { = Common stockholders equity } \\\mathrm{F} & \text { = Marketable securities (short-term) } \\\mathrm{G} & \text { = Total assets } \\\mathrm{H} & \text { = Current liabilities } \\\mathrm{I} & \text { = Net sales, credit } \\\mathrm{J} & \text { = Inventory } \\\mathrm{K} & \text { = Market price per common share } \\\mathrm{L} & \text { = Outstanding common shares } \\\mathrm{M} & \text { = Prepaid insurance } \\\mathrm{N} & \text { = Net sales, cash } \\\mathrm{O} & \text { = Common stock outstanding } \\\mathrm{P} & \text { = Accounts receivable (ending) } \\\mathrm{Q} & \text { = Long-term liabilities }\end{array}$
Required:
Use the letters above to indicate how the following ratios would be calculated:
a. Price/earnings
b. Profit margin
c. Acicltest
d. Receivablesturnover
e. Book value per common share

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Definitions:

End-Of-Period Spreadsheet

A tool used in accounting to summarize account balances and adjustments at the end of an accounting period, aiding in the preparation of financial statements.

Journalized Closing Entries

These are the final entries made in the accounting ledger to close the books at the end of an accounting period, ensuring that income and expense accounts are properly reset for the next period.

Adjusting Entries

Journal entries made at the end of an accounting period to update the ledger for items that are not recorded during the operating period.

Financial Statements

Reports that summarize the financial performance and position of a business, including balance sheet, income statement, and cash flow statement.