AND 100% CORRECT ANSWERS|LATEST
Debt Ratio - ANSWER Total Liabilities/Total Assets
Current Ratio - ANSWER Current Assets/Current Liabilities. Only need a balance
sheet.
Return on Sales - ANSWER Net Income/Sales. Only need income statement
Asset Turnover - ANSWER Sales/Total Assets
Return on Equity - ANSWER Net Income/Stockholder's equity. Balance and Income
Statements used.
Price-Earnings Ratio (PE) - ANSWER Market Value fo Shares/Net Income
Times interest earned - ANSWER Dividing income, before any charges for interest or
income tax, by the interest expense for the period
Assets-to-equity ratio - ANSWER computed as assets divided by equity and is
interpreted as the number of dollars of assets acquired for each dollar invested by
stockholders
Accounts receivables - ANSWER divided by average daily sales gives the average
collection period
1
Debt Ratio - ANSWER Total Liabilities/Total Assets
Current Ratio - ANSWER Current Assets/Current Liabilities. Only need a balance
sheet.
Return on Sales - ANSWER Net Income/Sales. Only need income statement
Asset Turnover - ANSWER Sales/Total Assets
Return on Equity - ANSWER Net Income/Stockholder's equity. Balance and Income
Statements used.
Price-Earnings Ratio (PE) - ANSWER Market Value fo Shares/Net Income
Times interest earned - ANSWER Dividing income, before any charges for interest or
income tax, by the interest expense for the period
Assets-to-equity ratio - ANSWER computed as assets divided by equity and is
interpreted as the number of dollars of assets acquired for each dollar invested by
stockholders
Accounts receivables - ANSWER divided by average daily sales gives the average
collection period
1
