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The Following Codes Are Used to Compute the Ratios Below

question 79

Essay

The following codes are used to compute the ratios below:
 A  Accounts receivable (beginning) B = Net income C = Cash D = Earnings per share E = Common stockholders equity F = Marketable securities (short-term) G = Total assets H = Current liabilities I = Net sales, credit J = Inventory K = Market price per common share L = Outstanding common shares M = Prepaid insurance N = Net sales, cash O = Common stock outstanding P = Accounts receivable (ending) Q = Long-term liabilities \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


Definitions:

Meth

Short for methamphetamine, a powerful, highly addictive stimulant affecting the central nervous system.

Cocaine Addiction

Cocaine addiction is a chronic disease characterized by a compulsive need to use cocaine despite harmful consequences.

Marijuana

A substance obtained from the Cannabis plant that affects the mind, employed for therapeutic or recreational uses.

Illicit Drug Use

The use of drugs that are prohibited by law, including substances without a legal prescription.

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