The following codes are used to compute the ratios below:
A Intangible assets
B Ac counts receivable
C Cash flow from operations
D Cost of goods sold
E Average common share outstanching
F Cash
G Current liabilities
H Net income
I Inventory, beginning
J Property, plant, and equipment
K Prepaid insurance
L Common dividends
M Long-term liabilities
N Interest expense
O Inventory, ending
P Preferred dividends
Q Investment in stock of subsidiary
T Pretax operating income Required:
Use the letters above to indicate how the following ratios would be calculated:
a. Debtratio
b. Inventary tumover
c. Quick ratio
d. Earnings per share
e. Cash flows from operations to net income
Correct Answer:
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