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The Following Codes Are Used to Compute the Ratios Below

Question 86

Essay

The following codes are used to compute the ratios below:
 A  Accounts receivable (beginning) B = Net income C = Cash D = Earnings per share E = Common stockholders equity F = Marketable securities (short-term) G = Total assets H = Current liabilities I = Net sales, credit J = Inventory K = Market price per common share L = Outstanding common shares M = Prepaid insurance N = Net sales, cash O = Common stock outstanding P = Accounts receivable (ending) Q = Long-term liabilities \begin{array}{ll}\text { A } & \text { Accounts receivable (beginning) } \\\mathrm{B} & \text { = Net income } \\\mathrm{C} & \text { = Cash } \\\mathrm{D} & \text { = Earnings per share } \\\mathrm{E} & \text { = Common stockholders equity } \\\mathrm{F} & \text { = Marketable securities (short-term) } \\\mathrm{G} & \text { = Total assets } \\\mathrm{H} & \text { = Current liabilities } \\\mathrm{I} & \text { = Net sales, credit } \\\mathrm{J} & \text { = Inventory } \\\mathrm{K} & \text { = Market price per common share } \\\mathrm{L} & \text { = Outstanding common shares } \\\mathrm{M} & \text { = Prepaid insurance } \\\mathrm{N} & \text { = Net sales, cash } \\\mathrm{O} & \text { = Common stock outstanding } \\\mathrm{P} & \text { = Accounts receivable (ending) } \\\mathrm{Q} & \text { = Long-term liabilities }\end{array}
Required:
Use the letters above to indicate how the following ratios would be calculated:
a. Price/earnings
b. Profit margin
c. Acicltest
d. Receivablesturnover
e. Book value per common share

Correct Answer:

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