QUESTIONS AND VERIFIED ANSWERS GRADED A+//LATEST UPDADE
2024-2025//DOWNLOAD AND PASS
ROE - ANSWER: Net Income / Avg. Stockholder's Equity
ROA - ANSWER: Net Income / Avg. Total Assets
Financial Leverage Percentage - ANSWER: Return on Equity - Return on Assets (ROE - ROA)
Net profit margin - ANSWER: Net Income / Net Sales Revenue
Earnings per share (EPS) - ANSWER: Net Income / Weight. avg. shares outstanding
Quality of Income Ratio - ANSWER: Cash Flows from operating / Net income
Total asset turnover - ANSWER: net sales revenue / avg. total asset
Fixed asset turnover - ANSWER: Net sales revenue / avg. fixed assets
Receivable turnover ratio - ANSWER: Net credit sales / avg. net receivables
Inventory turnover - ANSWER: COGS / Avg. Inventory
Current ratio - ANSWER: Current Assets / Current Liabilities
Quick ratio - ANSWER: Cash + Cash equiv. + Accts. receivable / current liabilities
Cash ratio - ANSWER: Cash + cash equivalents / current liabilities