Below Are Eight Ratios ________ (A

question 109

Essay

Below are eight ratios. Match each equation to the correct ratio. If there is no match, use "None" as your response.
$$\begin{array} { | l | l | } \hline \text { Current ratio } & \text { Working capital } \\\hline \text { A/R turnover rate } & \text { Debt ratio } \\\hline \text { Earnings per share } & \text { Return on assets } \\\hline \text { Return on equity } & \text { Price-earnings ratio } \\\hline\end{array}$$
________ (a.) Net income - preferred dividends divided by average number of common shares outstanding.
________ (b.) Net sales divided by average accounts receivable.
________ (c.) Operating income divided by average total assets.
________ (d.) Current assets divided by current liabilities.
________ (e.) Annual dividend divided by current stock price.
________ (f). Current assets minus current liabilities.
________ (g.) Total liabilities divided by total assets.
________ (h.) Net income divided by average total equity.
________ (i.) Common stockholder's equity divided by shares of common stock outstanding.
________ (j ) Current stock price divided by earnings per share.

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Definitions:

Loss-minimizing

A strategy employed by businesses to reduce the amount of financial losses incurred during unfavorable market conditions or through poor operational decisions.

Units of Output

The quantity of product produced, serving as a measure of a firm's or industry's total production.

Profit-maximizing

A strategy or approach aimed at achieving the highest possible profit, where revenue exceeds costs by the greatest amount.

Market Price

The present cost at which a product or service is available for purchase or sale in a specific market.