Formulas Exam 1

Question 1

p * r * n is BLANK interest while p * (1+r)^t - p is BLANK interest.

Answer 1

simple, compounding

Question 2

NWC = (Cash+AR+Inventory)-CL What are the 3 values in parenthesis called?

Answer 2

current assets (CA)

Question 3

(Inventory/COGS)*365 =

Answer 3

of days to sell inventory

Question 4

Dollars of sales being generated from every dollar of net fixed assets = (what’s the name of the formula?)

Answer 4

Fixed Assets turnover