Built around real course units and objectives!
Inventory Turnover - Answer: Cogs/avg merch inventory
Gross profit percentage - Answer: Gross profit/net sales revenue
Rate of return on equity - Answer: (Net income-preferred dividends)/avg common
stockholders equity
Current Ratio - Answer: total current assets/total current liabilities
Debt to Equity Ratio - Answer: Total Debt/Total Equity
Earnings Per Share (EPS) - Answer: (net income-preferred dividends)/weighted avg
common shares outstanding
Price/Earnings (P/E) Ratio - Answer: market price per share/earnings per share
Profit Margin Ratio - Answer: net income/net sales
Return on Assets - Answer: (net income+interest expense)/average total assets
Cash Ratio - Answer: (cash+cash equivalents)/total current liabilities
Accounts Receivable Turnover Ratio - Answer: net credit sales/average net accounts
receivable
Gross Profit - Answer: net sales - cost of goods sold
APPHIA – Crafted with Care and Precision for Academic Excellence. 1