Glo-bus Test 1 Questions and Complete
Solutions Graded A+
Gross Profit Margin GPM - Answer: (Net sales - COGS)/
Net sales
Return on Sales ROS, net profit margin - Answer: Net profit/
Net sales= Percentage
Return on Assets ROA - Answer: Net profit/
Total assets= percentage
Return on Equity - Answer: Net profit/
Total Equity
total equity will be on balance sheet.
Current Ratio - Answer: Current assets/
Current liabilities
current assest - Answer: assest less than year+ AR
Quick Ratio or Acid Test - Answer: CA - Inventory/
Current liabilities
Cash Ratio - Answer: Cash / Liabilities
Times Interest Earned TIE - Answer: EBIT / Interest
EBIT=earnings before interst and taxes
Solutions Graded A+
Gross Profit Margin GPM - Answer: (Net sales - COGS)/
Net sales
Return on Sales ROS, net profit margin - Answer: Net profit/
Net sales= Percentage
Return on Assets ROA - Answer: Net profit/
Total assets= percentage
Return on Equity - Answer: Net profit/
Total Equity
total equity will be on balance sheet.
Current Ratio - Answer: Current assets/
Current liabilities
current assest - Answer: assest less than year+ AR
Quick Ratio or Acid Test - Answer: CA - Inventory/
Current liabilities
Cash Ratio - Answer: Cash / Liabilities
Times Interest Earned TIE - Answer: EBIT / Interest
EBIT=earnings before interst and taxes