Show the formulas for the following ratios.

1. Working capital

2. Current ratio

3. Acid-test or quick ratio

4. Operating cash flows to current liabilities

5. Free cash flows

6. Return on net operating assets

7. Accounts receivable turnover

8. Gross profit margin

9. Profit margin

10. Inventory turnover—skip this ratio if your company does not have inventory; include

    in your calculations that your company does not have inventory so ratio is N/A (not

    applicable).

11. Debt-to-equity ratio

12. Times interest earned ratio

13. Return on common equity

14. Return on assets

15. Earnings per share (basic and diluted)—you can get this from the company’s Income

    Statement or Statement of Operations

16. Price-earnings ratio—use stock market price for date of financial statements, if you

    can find it; if you can’t find it, then use the current market price.