Financial Ratio Analysis

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Author:
kaylaelko
ID:
75313
Filename:
Financial Ratio Analysis
Updated:
2011-03-26 13:53:43
Tags:
Fin
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Description:
Fin Ratio Analysis
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  1. The ability of the practice to pay obligations using its current assets
    Liquidity/Solvency
  2. What is the Acid Test Ratio equation?
    • QuickAssets
    • Current Liabilities
  3. How do you find Quick Assets?
    Current Assets-Inventory
  4. Current Ratio is.......?
    • Current Assets
    • Current Liabilities
  5. What is the ratio for Inventory to Net Working Captial?
    • Inventory
    • Current Assets-Current Liabilities
  6. Current Liabilities to Net Working Captital
    • Current Liabilities
    • Net Working Capital


    • Current Liabilities
    • Current Assets-Current Liabilities
  7. The ability of a business to meet its obligations by using all its assets is.........?
    Financial Position
  8. What do you use to determine financial position?
    • Net Worth
  9. The equations for Financial Position?
    • Total Liabilities
    • Net Worth

    • Current Liabilities
    • Net Worth

    • Fixed Assets
    • Net Worth
  10. What do you use to measure Profitability?
    Net Profit
  11. What are the equations for Net Profit to measure Profitability?
    • Net Profit
    • Net Sales

    • Net Profit
    • Net Worth

    • Net Profit
    • Total Assets

    • Net Profit
    • Total Investment

    • Net Profit
    • Net Working Capital
  12. To measure pure return on inventory what is the equation and what about it?
    • Net Profit
    • Inventory

    • *Taken out expenses
    • *Looking at pure return on inventory
  13. How the manager is controlling operations is known as?
    Efficiency
  14. What is used to measure efficiency?
    Net Sales
  15. What are the equations used to measure efficiency?
    • Net Sales
    • Net Working Capital

    • Net Sales
    • Accounts Receivable

    • Net Sales
    • Net Worth
  16. How do you measure Inventory Turnover?
    • Cost of Goods Sold
    • Average Inventory at Cost
  17. Accounts Receivable Collection Period?
    • Accounts Rec. T.O. =
    • Credit Sales
    • Accounts Rec.

    • Accts. Rec. Collection Period =
    • 365
    • Accounts Rec. T.O.
  18. Average Accounts Payable Remittance Time (AAPRT)...............?
    • Accts Payable T.O. =
    • Purchases
    • Accounts Payable


    • AAPRT =
    • 365
    • Accts. Payable T.O.

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