Consider the Formula Used to Calculate Each of the Following

question 49

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
1.___ Net Profit Margin
2.___ Debt-to-assets ratio
3.___ EPS
4.___ ROE
5.___ Days to collect
6.___ Days to sell
7.___ Price earnings ratio
8.___ Current ratio
9.___ Fixed asset turnover
10.___ Gross profit percentage
11.___ 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

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Definitions:

Selling Price

The amount of money that a buyer pays to purchase a product or service from a seller.

Cost Structure

The composition of a company's costs, including fixed and variable costs.

Equipment Depreciation

The allocation of the cost of physical assets over their useful lives, recognizing the reduction in value due to wear and tear, obsolescence, or age.

Material Costs

Expenses associated with the raw materials and components required for manufacturing goods.