Audit Evidence- Ratios Flashcards
1
Q
Working Capital
A
Current Assets- Current Liabilities
2
Q
Current Ratio (Working Capital Ratio)
A
CA/CL
3
Q
Acid-test Ratio
A
CE+MS+AR/ CL
4
Q
Cash Ratio
A
CE+MS/CL
5
Q
A/R Turnover
A
Net Credit Sales/ Avg A/R
6
Q
A/R Turnover in days
A
Avg Net AR/ Net Credit Sales (365)
7
Q
Inventory Turnover
A
COGS/ Avg. Inventory
8
Q
Inventory Turnover in days
A
Avg Inventory/ COGS/365
9
Q
Working Capital Turnover
A
Sales/Avg. Working Capital
10
Q
Total Asset Turnover
A
Net Sales/ Avg. Total Assets
11
Q
A/P Turnover
A
COGS/Avg. AP
12
Q
Days in Accounts Payable
A
Avg. A/P / (COGS/365)
13
Q
Net Profit Margin %
A
Net Income/ Net Sales
14
Q
Gross Margin %
A
Gross (Profit) Margin/ Net Sales
15
Q
Operating Cash flow per share
A
Operating Cash Flow/ Common Shares Outstanding
16
Q
Return on total assets
A
Net Income/ Avg. Total assets
