The following codes are used to compute the ratios below:
A $\quad$ $=$ Intangible assets
B $\quad$ $=$ Ac counts receivable
C $\quad$ $=$ Cash flow from operations
D $\quad$ $=$ Cost of goods sold
E $\quad$ $=$ Average common share outstanching
F $\quad$ $=$ Cash
G $\quad$ $=$ Current liabilities
H $\quad$ $=$ Net income
I $\quad$ $=$ Inventory, beginning
J $\quad$ $=$ Property, plant, and equipment
K $\quad$ $=$ Prepaid insurance
L $\quad$ $=$ Common dividends
M $\quad$ $=$ Long-term liabilities
N $\quad$ $=$ Interest expense
O $\quad$ $=$ Inventory, ending
P $\quad$ $=$ Preferred dividends
Q $\quad$ $=$ Investment in stock of subsidiary
T $\quad$ $=$ Pretax operating income Required:
Use the letters above to indicate how the following ratios would be calculated:
a. Debtratio
b. Inventary tumover
c. Quick ratio
d. Earnings per share
e. Cash flows from operations to net income

Question

The following codes are used to compute the ratios below:
A

\quad

=

Intangible assets
B

\quad

=

Ac counts receivable
C

\quad

=

Cash flow from operations
D

\quad

=

Cost of goods sold
E

\quad

=

Average common share outstanching
F

\quad

=

Cash
G

\quad

=

Current liabilities
H

\quad

=

Net income
I

\quad

=

Inventory, beginning
J

\quad

=

Property, plant, and equipment
K

\quad

=

Prepaid insurance
L

\quad

=

Common dividends
M

\quad

=

Long-term liabilities
N

\quad

=

Interest expense
O

\quad

=

Inventory, ending
P

\quad

=

Preferred dividends
Q

\quad

=

Investment in stock of subsidiary
T

\quad

=

Pretax operating income Required:
Use the letters above to indicate how the following ratios would be calculated:
a. Debtratio
b. Inventary tumover
c. Quick ratio
d. Earnings per share
e. Cash flows from operations to net income

Keval Patel · Accepted Answer

Final Answer :  a.  G + M A + B + F + J + K + O + Q \frac{G+M}{A+B+F+J+K+O+Q} A + B + F + J + K + O + Q G + M ​ b.  D ( I + O ) / 2 \frac{D}{(I+O) / 2} ( I + O ) /2 D ​ c.  B + F G \frac{B+F}{G} G B + F ​ d.  H − P E \frac{H-P}{E} E H − P ​ e.  C H \frac{\mathrm{C}}{\mathrm{H}} H C ​

Definitions

Learning Objectives

Learning Objectives

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