Assignment 5: Financial Acct 1

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cf_Unit5_E13-5.xlsx
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E13-5

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

E13-5 Check Figures

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

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