Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please match the following terms with the following definitions by placing the correct letter next to the term. gross margin ratio profit margin ratio return

Please match the following terms with the following definitions by placing the correct letter next to the term.

gross margin ratio

profit margin ratio

return on assets ratio

current ratio

quick ratio

receivables turnover ratio

inventory turnover ratio

debt to assets ratio

debt to equity ratio

times interest earned ratio

A. gross margin generated for each dollar in net sales

B. profit generated for each dollar in net sales

C. evaluates how much net income was generated from each dollar in average assets invested

D. indicates whether a company has sufficient current assets to cover current liabilities

E. indicates whether a company has sufficient quick, or highly liquid, assets to cover current liabilities

F. indicates how many times receivables are collected in a given period

G. indicates how many times inventory is sold and restocked in a given period

H. indicates the percentage of assets funded by creditors

I. measures the balance of liabilities and shareholders equity used to fund assets

J. measures the companys ability to cover its interest expense related to long-term debt with current period earnings

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_2

Step: 3

blur-text-image_3

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

Banking Secrecy And Global Finance

Authors: Donato Masciandaro, Olga Balakina

1st Edition

1137400099, 978-1137400093

Students also viewed these Finance questions

Question

Why should business writers strive for conciseness?

Answered: 1 week ago