Ratios - Liquidity/Solvency Flashcards
1
Q
Accounts Receivable turnover ratio
A
Credit Sales/Average Accounts Receivable
2
Q
Quick Ratio
A
Quick Assets/Current Liabilities
3
Q
Inventory Turnover Ratio
A
Cost of Goods Sold/Average Inventory
4
Q
Calculate Cost of Good Sold
A
Beg Inventory + Purchases - Ending Inventory = COGS
5
Q
Current Ratio
A
Current Assets/Current Liabilities
6
Q
Times Interest Earned Ratio
A
Income before interest expense and income tax/interest expense
