Below Is a List of Common Ratios Necessary for Financial

question 65

Essay

Below is a list of common ratios necessary for financial statement analysis. a. Debt-to-Assets
b. Return on Common Equity
c. Fixed Asset Turnover
d. Total Asset Turnover
e. Debt-to-Equity Ratio
f. Inventory Turnover
g. Current Ratio
h. Quick Ratio
Required:
Match the ratio with the appropriate formula.
1.Net Income ÷ Average Total Common Equity

2.Quick Assets ÷ Current Liabilities

3.Current Assets ÷ Current Liabilities

4.Cost of Goods Sold ÷ Average Inventory

5.Total Liabilities ÷ Total Common Equity

6.Total Revenues ÷ Average Net Fixed Assets

7.Total Revenues ÷ Average Total Assets

8.Total Liabilities ÷ Total Assets

---

Definitions:

Oxygen Gas

A diatomic molecule (O2) essential for aerobic respiration in living organisms.

Photosynthesis

The process by which green plants and some other organisms use sunlight to synthesize foods from carbon dioxide and water, generating oxygen as a byproduct.

Aerobic Respiration

A process of producing cellular energy involving oxygen. Cells use this method to convert glucose and oxygen into energy.

Photosynthesis

The process by which green plants and some other organisms use sunlight to synthesize nutrients from carbon dioxide and water.