Complete the Table Below by Filling in the Formula Blank

question 152

Essay

Complete the table below by filling in the Formula blank with the letter that corresponds to the correct formula for each ratio and filling in the Interpretation blank with the letter that corresponds to the interpretation provided.Not all ratio formulas and interpretations will be used.
$$\begin{array} { | c | c | c | } \hline \text { Ratio } & \text { Formula } & \text { Interpretation } \\\hline \text { 1.PriceEarnings Ratio } & & \\\hline \text { 2. Earnings per Share } & & \\\hline \text { 3. Return on Equity } & & \\\hline\end{array}$$
Ratio Formulas
A. 365 ÷ Inventory Turnover
B. (Sales – Cost of Goods Sold) ÷ Sales
C. Net Income ÷ Sales
D. Net Operating Income ÷ Interest Expense
E. (Net income – Preferred dividends) ÷ Average number of common shares outstanding
F. Total Liabilities ÷ Total Assets
G. Current stock price (per share) ÷ Earnings per Share
H. (Net income – Preferred dividends) ÷ Average common stockholders' equity

Ratio Interpretations
A. The portion of sales that is attributable to merchandise profit.
B. Ability of a company to pay its short-term debts as they come due.
C. The percent of each sales dollar that is left over after covering costs and expenses.
D. How many times more than the current year's earnings investors are willing to pay for a company's common stock.
E. Ability of a company to quickly pay its short-term debts as they come due.
F. The portion of a company's total financing that comes from debt.
G. The amount of income generated for each share of common stock owned by stockholders.
H. How effectively a company is using its assets to generate revenue.
I. The amount of income earned for each dollar of common stockholders' equity.

---

Definitions:

Coworkers

Individuals who work together in the same organization or workplace, often collaborating or interacting as part of their roles.

Golem Effect

A psychological phenomenon in which lower expectations placed upon individuals either by supervisors or the individuals themselves lead to poorer performance.

Performance

The act of carrying out a task with skill, or the degree to which a system, component, or individual successfully achieves its intended purpose.

Expectations

Anticipated outcomes or standards that are believed or hoped to occur in the future.