Chapter 16 Flashcards
Provides a stable indication of operating income to each dollar of sales.
EBITDA
Represents the difference between a company’s current assets and its current liabilities.
Working Capital
A company’s ability to pay its current liabilities by using its current assets.
Current Ratio
When the company’s inventory is subtracted from its current assets to arrive as its quick assets, this is known as:
Quick Asset (Acid Test) Ratio
(TCA - Inventory) / TCL
Common stockholders’ equity divided by the number of common shares outstanding
Book value per share
A payment of a dividend would _____ current assets and _____ current liabilities.
reduce; reduce
(Net income - preferred dividends) / common shares outstanding =
Earnings Per Share
The analysis of a specific company are the focus of the:
fundamental analyst
The issuance of stock would _____ current assets and _____ Shareholder Equity.
increase; increase
The declaration of a dividend _____ retained earnings and _____ current liabilities.
reduces; increases
When prices are rising, switching from a LIFO to FIFO inventory method will _____ COGS.
reduce
Goodwill is an example of a(n):
intangible asset
A company with more debt than equity outstanding is considered:
leveraged
When prices are rising, switching from a LIFO to FIFO inventory method will _____ EBITDA
increase
Cash dividends declared by a corporation are a:
current liability to the corporation when declared
