Consider the Formula Used to Calculate Each of the Following

question 8

Essay

Consider the formula used to calculate each of the following financial performance ratios. From the list of financial statement items below, match its letter with the ratio it is used to calculate. Some financial statement items will be used more than once. Some ratios will use one letter from the list and some ratios will use two letters from the list.
Ratio
___ Net Profit Margin
___ Debt-to-assets ratio
___ EPS
___ ROE
___ Days to collect
___ Days to sell
___ Price earnings ratio
___ Current ratio
___ Fixed asset turnover
___ Gross profit percentage
___ Quick ratio
Financial Statement Item
A) Net income
B) Interest paid
C) Cost of goods sold
D) Net sales revenue
E) Total liabilities
F) Total assets at year end
G) Average stockholders' equity
H) Current liabilities

• A) Net income
• B) Interest paid
• C) Cost of goods sold
• D) Net sales revenue
• E) Total liabilities
• F) Total assets at year end
• G) Average stockholders' equity
• H) Current liabilities

Calculate net sales and understand its impact on financial statements.

Determine and interpret the gross profit rate.

Understand the difference between multiple-step and single-step income statements.

Identify and classify different types of expenses and losses.

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Definitions:

Internal Oblique

A muscle in the abdomen that assists in rotating and flexing the trunk as well as maintaining abdominal pressure.

Inferior Oblique

A muscle of the eye that contributes to lateral and upward gaze.

Lateral Rectus

A muscle in the eye that abducts the eyeball, allowing movement of the eye laterally towards the temple.

Superior Oblique

A muscle of the eye that contributes to downward and outward movements.