Assignment 5: Financial Acct 1

cf_Unit5_E13-5.xlsx

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 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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