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Match Each of the Following Terms with the Appropriate Formulas

Question 170

Short Answer

Match each of the following terms with the appropriate formulas.
A. Days' sales in inventory
B. Dividend yield
C. Total asset turnover
D. Inventory turnover
E. Return on common stockholders' equity
F. Gross margin ratio
G. Days' sales uncollected
H. Profit margin ratio
I. Times interest earned
J. Debt ratio
________ (1) Net income - Preferred dividends Average common stockholders' equity
________ (2) Accounts receivable * 365
Net sales
________ (3) Total liabilities
Total assets
________ (4) Income before interest expense and income taxes
Interest expense
________ (5) Annual cash dividends per share
Market price per share
________ (6) Net sales - Cost of goods sold
Net sales
________ (7) Cost of goods sold
Average inventory
________ (8) ______Net sales
Average total assets
________ (9) Net income
Net sales
________ (10) Ending inventory * 365
Cost of goods sold

Correct Answer:

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1. E; 2. G; 3. J; 4....

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