UGBA 10- Module 3, Formulas(questions and answers)graded A+ 2023/2024

UGBA 10- Module 3, Formulascontribution margin - correct answer price- variable cost profit - correct answer quantity sold(price-variable cost) - fixed cost quantity sold(CM) - fixed cost *breakeven- profit=0 accounting equation - correct answer A=L+SE assets= liabilities + stockholders' equity price earnings ratio - correct answer stock price/earnings per share dividend yield - correct answer dividends per share/stock price earnings per share - correct answer company's earnings/number of shares outstanding market capitalization of a company - correct answer share price * number of shares outstanding liquidity ratio - correct answer current ratio= current assets/current liabilities should be 2:1 net income - correct answer revenues-expenses revenue calculation based on markeup - correct answer revenue= cost of goods sold * (1+M) M is the markup cash flow - correct answer cash flow= cash received -cash paid stockholders' equity - correct answer stockholders' equity (end of year)= stockholders' equity (beginning of the year) + new investments by stockholders + net income - dividends Dupont Ratios - correct answer includes RoE, Net Profit Margin, Asset Turnover, Financial Leverage dimensional analysis = RoE Return on Equity - correct answer annual net income/stockholders' equity net profit margin * asset turnover * financial leverage(equity multiplier) gets at root causes of goof or bad performance net profit margin - correct answer net income/net sales asset turnover - correct answer net sales/average total assets financial leverage (equity multiplier) - correct answer avg total assets/avg stockholder' equity sales growth - correct answer sales growth %= (sales current year/sales previous year)-100% money creation by banks - correct answer $D= $D(1-RR)