Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
1. Some important ratios that were introduced in this chapter, and the formulas associated with them are listed in the following chart. As illustrated in
1. Some important ratios that were introduced in this chapter, and the formulas associated with them are listed in the following chart. As illustrated in the Current Ratio example shown in the chart (in italics), identify the information source required for each formula's numerator and denominator and insert the name of the source document in the appropriate cell. Use the following entry identifiers: (7 points) ENTRIES For the income Statement enter: V/S For the Balance Sheet enter: B/S For the Statement of Cash Flows enter: SCF For all other enter: Other Ratio Formula Source of Numerator Source of Denominator Current ratio B/S B/S Quick Ration (Acid test ratio) Operating cash flows to current liabilities ratio Current assets Current liabilities Cash + Marketable securities + AR Current liabilities Operating.cash flows Current liabilities Working capital Current assets - Current liabilities Solvency ratio Debt-to-equity ratio Debt-to-assets ratio Inventory turnover ratio Total assets Total liabilities Total liabilities Total owners' equity Total liabilities Total assets Cost of goods consumed Average inventory Total revenue Net property and equipment Net income Total revenue Gross operating profit Total revenue Net income Total assets Property and equipment (Fixed asset) turnover ratio Profit margin Gross operating profit margin (Operating efficiency ratio) Return on assets ratio Return on equity ratio Net income Total owners' equity
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started