Ratios (chapters 4-5) Flashcards
1
Q
What is the ratio for Gross Profit?
A
Net Sales
- COGS
=Gross Profit
2
Q
What is the ratio for Net Sales?
A
Sales
Less: Sales Discounts
Less: Sales Returns and Allowances
=Net Sales
3
Q
What is the ratio for Goods Available for Sale and Ending Inventory?
A
Beginning Inventory
+Net Purchases
=Goods Available for Sale
-Costs of Goods Sold
=Ending inventory
4
Q
What is the ratio for Quick Ratio?
A
(Cash/cash equivalents + ST investments + Current AR) /Current Liabilities
5
Q
What is the ratio for Gross Margin Ratio?
A
(Net Sales-COGS)/Net Sales
6
Q
What is the ratio for Inventory Turnover?
A
COGS/ Average Inventory
7
Q
What is the ratio for Days’ Sales in Inventory?
A
Ending Inventory/COGS X 365
