formulas

Question 1

accounting equation

Answer 1

Assets=liabilities+ equity or owners equity

Question 2

accounts receiveable turnover

Answer 2

credit sales/average AR (book says ann revenue/accounts receivable/)

Question 3

annual revenue per veterinarian

Answer 3

annual gross revenue/#FTE vets

Question 4

average age of AR

Answer 4

365/AR turnover

Question 5

average age of inventory

Answer 5

365/inventory turnover ratio

Question 6

average transaction value

Answer 6

total revenue/# transactions

Question 7

cash flow`

Answer 7

current assets/current liabilities

Question 8

Econ Order Quantity

Answer 8

square root 2XAXF
___________________
HXUC

Question 9

efficiency ratio

Answer 9

patient visits/# staff hours

Question 10

employee retention

Answer 10

staff retained/# staff positions

Question 11

employee turnover

Answer 11

staff left org/# employees in org X 100

Question 12

equity ration

Answer 12

total liabilities/owners equity

Question 13

gross profit

Answer 13

Gross Rev- cost of goods sold

Question 14

inventory turnover ratio

Answer 14

DMSP annual purchase/ average inventory value

Question 15

net income before taxes

Answer 15

Gross Rev- operating Expenses before Ebitda

Question 16

net income (or loss)

Answer 16

net income-taxes

Question 17

profit margin

Answer 17

net income/rev

Question 18

profitability ration

Answer 18

operating income/revenue

Question 19

return on investment

Answer 19

expected annual return/investment X 100

Question 20

working capital

Answer 20

cash on hand + AR - current liabilities