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What do these ratio measure and what do the numbers represent e. Gross Margin Ratio [4 marks] GrossMarginRatio=SalesRevenue/COGS=2,025,000/1,220,000=1.66 - Explanation: Gross Margin Ratio measures f.
What do these ratio measure and what do the numbers represent
e. Gross Margin Ratio [4 marks] GrossMarginRatio=SalesRevenue/COGS=2,025,000/1,220,000=1.66 - Explanation: Gross Margin Ratio measures f. Profit Margin Ratio [4 marks] Profit Margin Ratio = Net Income / Sales Revenue =392,000/2,025,000 =0.19 - Explanation: Profit Margin Ratio measures g. Debt Ratio [2 marks] DebtRatio=TotalLiabilities/TotalAssets=1,248,000/2,318,000=0.54>54% - Explanation: Debt Ratio measures h. Equity Ratio [2 marks] Equity Ratio = Total Shareholders' Equity / Total Assets =1,070,000/2,318,000 =0.46>46% - ExplanationStep by Step Solution
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ISE Fundamentals Of Cost Accounting
Authors: William N. Lanen, Shannon Anderson, Michael W. Maher
6th Edition
1260569098, 9781260569094
