Match the ratio to the building block of financial statement analysis to which it best relates.

A. Liquidity and efficiency C. Profitability B. Solvency D. Market prospects 1 _______ Book value per common share 6 _______ Gross margin ratio 2 _______ Days’ sales in inventory 7 _______ Acid-test ratio 3 _______ Accounts receivable turnover 8 _______ Equity ratio 4 _______ Debt-to-equity 9 _______ Return on total assets 5 _______ Times interest earned 10 _______ Dividend yield.

AppendixLO1