CF Unit5 E13-5
E13-5 Matching Each Ratio with Its Computational
Formula LO 13-4, 13-5, 13-6, 13-7
E13-5 Match each definition with its related ratios
or percentages by selecting the appropriate letter in the drop down provided.
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Definitions:
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Ratios or Percentages
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Definitions
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A.
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Net
Income (before extraordinary items) ÷ Net Sales
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1
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Profit
margin
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B.
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Days
in Year ÷ Receivable Turnover ratio
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2
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Inventory
turnover ratio
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C.
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Net
Income ÷ Average Stockholders’ Equity
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3
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Average
collection period
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D.
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Net
Income ÷ Average Number of Shares of Common Stock Outstanding
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4
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Dividend
yield ratio
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E.
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Return
on Equity − Return on Assets
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5
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Return
on equity
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F.
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Quick
Assets ÷ Current Liabilities
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6
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Current
ratio
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G.
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Current
Assets ÷ Current Liabilities
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7
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Debt-to-equity
ratio
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H.
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Cost
of Goods Sold ÷ Average Inventory
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8
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Price/earnings
ratio
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I.
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Net
Credit Sales ÷ Average Net Receivables
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9
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Financial
leverage percentage
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E
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J.
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Days
in Year ÷ Inventory Turnover Ratio
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10
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Receivable
turnover ratio
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K.
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Total
Liabilities ÷ Stockholders’ Equity
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11
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Average
days’ supply of inventory
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L.
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Dividends
per Share ÷ Market Price per Share
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12
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Earnings
per share
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M.
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Market
Price per Share ÷ Earnings per Share
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13
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Return
on assets
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N.
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[Net
Income + Interest Expense (net of tax)] ÷ Average Total Assets
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14
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Quick
ratio
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O.
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Cash
from Operating Activities (before interest and taxes) ÷ Interest Paid
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15
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Times
interest earned
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P.
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Net
Sales Revenue ÷ Net Fixed Assets
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16
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Cash
coverage ratio
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Q.
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(Net
Income + Interest Expense + Income Tax Expense) ÷ Interest Expense
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17
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Fixed
asset turnover ratio
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file name: CF Unit5 E13-5 Match each.xls File type: .xls PRICE: $6
