Ch14 Flashcards
liquidity ratios
working capital
current ratio
quick ratio
working capital
current assets - current liabilities
current ratio
current assets / current liabilities
quick ratio
(cash + short term investment + new receivables) / current liabilities
*no inventory
profitability
return on sales
return on total assets
return of equity
earnings per share
return on sales
net income / net sales
return on total assets
(net income + interest expense) / average total assets
return of equity
(net income - preferred dividends declared) / average common stockholder’s equity
earnings per share
(net income - preferred dividends declared) / average common shares
In performing a vertical analysis of an income statement, which of the following is generally used as the base amount?
net sales
Common-sized financial statements are included in which type of analysis?
vertical analysis
The practice of comparing one company’s performance to another’s can be accomplished using
All of these
trend analysis
ration analysis
brenchmarking
The ability of a company to collect receivables is measured by which ratio?
Day’s sales in receivables
Which type of analysis includes the computation of the percentage change in total assets between two balance sheet dates?
horizontal
horizontal analysis
(current - prior) / prior
