Indiana University BUS-A 100 Midterm Review Questions Fully Solved Set.

Debt-to-equity Ratio: Leverage - Answer Average Total Liabilities/Average Stockholders' Equity Return On Equity(ROE)Ratio: Profitability - Answer Net Income/Average Stockholders' Equity Current Ratio: Solvency - Answer Current Assets/Current Liabilities Inventory Turnover Ratio: Asset Turnover - Answer Costs of Goods Sold/Average Inventory Earnings per Share: Other - Answer Net Income/# of shares outstanding -- required to be on financial statements Accounts Receivable - Answer beginning balance+sales-cash collected from sales=ending balance Inventory - Answer beginning inventory+inventory purchased-cost of goods sold=ending inventory Accounts Payable - Answer beginning balance+inventory purchased-amounts paid for inventory=ending balance Prepaid Accounts - Answer beginning balance+amounts paid-portion expiring during period=ending balance Long-term Assets - Answer beginning balance+land purchased-original cost of land sold=ending balance Notes Payable - Answer beginning balance+funds borrowed-amount paid=ending balance Interest Payable - Answer beginning balance+interest incurred-amount paid=ending balance Other Payable Accounts - Answer beginning balance+costs incurred-amount paid=ending balance