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.

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Definitions:

Rod-Shaped Structures

Physical formations or constructs that are long, slender, and cylindrical in shape.

Blueprint

A detailed plan or model that guides the making or construction of something.

Mitosis

A cell division process in which a single cell divides to produce two genetically identical daughter cells, crucial for growth, repair, and asexual reproduction.

DNA Replicates

the process by which a DNA molecule creates an exact copy of itself, crucial for cell division and the transmission of genetic information.