Ratio Analysis

Question 0

Ratio for percentage of sales growth

Answer 0

(Period 2)

Increase or decrease as a %

Question 1

Working Capital

Answer 1

Current Assets 
- 
Current Liabilities 
------------------------
= working capital

Question 2

Current ratio is defined as:

Answer 2

Number of dollars in current assets for every dollar of current liabilities

Question 3

Quick Ratio includes:

Answer 3

Assets that can be converted to cash immediately.

Assumes current liabilities are to be paid off

Question 4

Quick ratio formula:

Answer 4

Current Liabilities

Question 5

Debt to equity represents:

Answer 5

Borrowed amount of company financing proinvestors as compared to financing provided by owner investors

Question 6

Debt to Equity Ratio is:

Answer 6

Total Liabilities - Subordinated Officer Debt
—––—————————————————
Total Net Worth - Intangibles + Sub Officer Debt

Question 7

Quick Ratio / Acid Test formula:

Answer 7

Current Liabilities
= quick Ratio

Question 8

Operating Profit

Answer 8

Gross Profit
- SGA
——————–
= operating profit

Question 9

5 ways for savings in SGA:

Answer 9

R - Aid - o

Rent
Depreciation
Interest expense
Owners salary