Intermediate Accounting Exam 1 (Ch.1-4) Questions and Answers 100% Correct!

Gross Profit Margin Ratio - ANSWER-Gross Margin/Sales Percentage Return of Sales - ANSWER-Net Income/Sales Percentage Return on Assets - ANSWER-Net Income/Total Assets Percentage Return on Equity - ANSWER-Net Income/ SH Equity Percentage DuPont Breakout - ANSWER-(Net Income/Sales) x (Sales/Total Asset) x (Total Asset/SH Equity) = ROE Percentage Total Asset Turnover - ANSWER-Sales/Total Assets Decimal Equity Multiplier - ANSWER-Total Asset/SH Equity Decimal Accounts Receivable Turnover - ANSWER-Sales/AR Decimal Average Days in AR - ANSWER-365/AR Turnover Days Inventory Turnover - ANSWER-COGS/Inventory Decimal Days in Inventory - ANSWER-365/Inventory Turnover Days Operating Cycle - ANSWER-AR Days + Inventory Days Days Debt to Assets - ANSWER-Total Liabilities/Total Assets Percentage Equity to Assets - ANSWER-Total SH Equity/ Total Assets Percentage Debt to Equity - ANSWER-Total Liabilities/ Total SH Equity D