Question
Q.No.2.Match each of the following financial ratios with its formula. Ratios Current Ratio Days to Collect Days to Sell Debt-to-Assets Earnings Per Share (EPS) Fixed
Q.No.2.Match each of the following financial ratios with its formula.
Ratios
Current Ratio Days to Collect Days to Sell Debt-to-Assets Earnings Per Share (EPS) Fixed Asset Turnover Gross Profit Percentage Inventory Turnover Net Profit Margin Price/Earnings (P/E) Ratio Receivables Turnover Return on Equity (ROE) Times Interest Earned
Formulas
A. Cost of sales divided by Average inventory B. Current assets divided by Current liabilities C. Stock price divided by EPS D. Total liabilities divided by Total assets E. 365 divided by Inventory turnover ratio F. (Net income minus Preferred dividends) divided by Average number of common shares G. (Net income minus Preferred dividends) divided by Average common stockholders equity H. (Net income divided by Net sales revenue) 100 I. (Net income + Interest expense + Income tax expense) divided by Interest expense J. [(Net sales revenue Cost of goods sold) divided by Net sales revenue] 100 K. Total revenue divided by Average net fixed assets L. Net sales revenue divided by Average net receivables M. 365 divided by Receivables turnover ratio
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