Using the Financial Statements from the (Instructor Supplies the Income

question 18

Short Answer

Using the financial statements from the (instructor supplies the income statement and balance sheet of a company and insert name here)calculate each of the following ratios and briefly describe what the results indicate.
Current Ratio
Quick Ratio
Gross Margin Ratio
Return on Sales Ratio
Debt to Equity Ratio
Return on Investment Ratio
Return on Owners' Equity
Accounts Receivable Turnover
Inventory Turnover
Accounts Payable Turnover

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Definitions:

Dividend

A portion of a company's earnings that is paid to shareholders, typically on a quarterly basis.

NPV Projects

Projects evaluated based on Net Present Value, a method to assess the profitability of investments by discounting future cash flows.

Excess Cash

The amount of cash held by a company that exceeds what is needed for day-to-day operations and short-term obligations.

Earnings Per Share

A financial metric that measures the amount of net income earned per share of stock outstanding.