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The Following Data Was Reported by JSB for a Two-Year

question 47

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The following data was reported by JSB for a two-year period: The following data was reported by JSB for a two-year period:   Assets:   Liabilities:   *Includes interest expense,$2,500 (pre-tax) (a)Compute the following ratios for 20x12: (1)Receivable turnover (2)Inventory turnover (3)Creditors' equity to total assets (4)Acid test ratio (5)Return on owners' equity (6)Profit margin on sales (7)Current ratio (8)Return on total assets (9)Owners' equity to total assets (10)Financial leverage (b)Briefly explain and interpret financial leverage. Assets: The following data was reported by JSB for a two-year period:   Assets:   Liabilities:   *Includes interest expense,$2,500 (pre-tax) (a)Compute the following ratios for 20x12: (1)Receivable turnover (2)Inventory turnover (3)Creditors' equity to total assets (4)Acid test ratio (5)Return on owners' equity (6)Profit margin on sales (7)Current ratio (8)Return on total assets (9)Owners' equity to total assets (10)Financial leverage (b)Briefly explain and interpret financial leverage. Liabilities: The following data was reported by JSB for a two-year period:   Assets:   Liabilities:   *Includes interest expense,$2,500 (pre-tax) (a)Compute the following ratios for 20x12: (1)Receivable turnover (2)Inventory turnover (3)Creditors' equity to total assets (4)Acid test ratio (5)Return on owners' equity (6)Profit margin on sales (7)Current ratio (8)Return on total assets (9)Owners' equity to total assets (10)Financial leverage (b)Briefly explain and interpret financial leverage. *Includes interest expense,$2,500 (pre-tax)
(a)Compute the following ratios for 20x12:
(1)Receivable turnover
(2)Inventory turnover
(3)Creditors' equity to total assets
(4)Acid test ratio
(5)Return on owners' equity
(6)Profit margin on sales
(7)Current ratio
(8)Return on total assets
(9)Owners' equity to total assets
(10)Financial leverage
(b)Briefly explain and interpret financial leverage.

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Definitions:

Symmetric

Equally balanced or identical in size or shape on both sides of a dividing line.

Variation

The measure of how data points in a data set differ from the mean value of the data set.

Percentile

A metric signifying the threshold under which a specified proportion of entries in a dataset are found.

Measurements

Quantitative data collected by noting the extent, dimension, quantity, or capacity of something using standard units.

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