Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can you please explain what i am supposed to do. or explain the terms so i can apply them to my assignmet. thank you. Using

can you please explain what i am supposed to do. or explain the terms so i can apply them to my assignmet. thank you.
image text in transcribed
Using ratio analysis, apply the ratios as follows: Profitability ratios O Profit margin = net income/sales O ROA investment) = Net income total assets or net income/sales x sales/total assets O ROE = a) NI/Stockholder's equity or b) ROA investment)/(1- debt/assets) Asset Utilization Ratios o Receivable turnover = credit sales/receivables o Avg collection period = A/R/avg. daily credit sales o Inventory turnover = sales/inventory O Fixed asset turnover = sales/fixed assets o Total asset turnover = sales/total assets Liquidity ratios O Current ratio = current assets/current liabilities o Quick ratio = (current assets - inventory)/ current liabilities Debt Utilization ratios o Debt to total assets = total debt/total assets o Times Interest Earned Income before interest & taxes/ interest o Fixed charge coverage = Income b/f fixed charges and taxes/ fixed charges

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fraud Analytics Using Descriptive Predictive And Social Network Techniques A Guide To Data Science For Fraud Detection

Authors: Bart Baesens, Veronique Van Vlasselaer, Wouter Verbeke

1st Edition

1119133122, 978-1119133124

More Books

Students also viewed these Accounting questions