Solved

Match Each Term with Its Formula

Question 121

Matching

Match each term with its formula

Premises:
Total asset turnover
Days' sales in inventory
Days' sales uncollected
Debt ratio
Times interest earned
Return on common stockholders' equity
Gross margin ratio
Dividend yield
Inventory turnover
Profit margin ratio
Responses:
(Ending inventory/ cost of goods sold) x 365
Annual cash dividends per share /Market price per share
Net sales/ Average total assets
Cost of goods sold /Average inventory
(Net income - preferred dividends)/ Average common stockholders' equity
(Net sales - Cost of goods sold)/ Net sales
(Accounts receivable x Net Sales) x 365
Net income /Net sales
Income before interest expense and income taxes/ Interest expense
Total liabilities /Total assets

Correct Answer:

Total asset turnover
Days' sales in inventory
Days' sales uncollected
Debt ratio
Times interest earned
Return on common stockholders' equity
Gross margin ratio
Dividend yield
Inventory turnover
Profit margin ratio
Related Questions