Midterm 2 (Ch4,5,7,8) Flashcards
1
Q
Total Asset Turnover
A
Net sales / Average Total Assets
2
Q
Accounts receivable turnover
A
Net (credit) sales / average accounts receivable, net
3
Q
Average accounts receivable, net
A
(Beginning A/R balance - beginning AFDA) + (Ending A/R balance - ending AFDA)
/
2
4
Q
Inventory turnover
A
COGS / Average inventory
5
Q
Days sales in inventory
A
Ending inventory / COGS
6
Q
Acid Test (Quick Ratio)
A
Quick Assets / Current Liabilities
7
Q
Gross Margin Ratio
A
Gross profit / Net Sales
