# AEB FINANCIAL

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1. The current ratio is the ratio of __ to __.
CA to CL
2. 1)
If net cash provided or used by operating, financing and
investing activities are added together, the result is the _____.
Change in cash
3. ______ (also can be ______) is added to net
income to determine CFO.
• Depreciation
• or
• Amortization
4. The amount of leverage used by the firm is determined by management decision with regard to the ______ problem.
capital structure
5. Three potential financial statement users are:
• creditors,
• investors and management.
6. Stockholders’ return is measured by the____
while management efficiency is measured by _____.
• ROE
• ROA
7. ______ is an example of a coverage ratio.
Times interest earned
8. On the statement of cash flows the repayment of debt principal would be classified as a _____account.
financing
9. In the summary analysis (common-size) of the statement of cash flows from operations (if positive) shows the cash inflows as a percentage of total_____.
inflows
10. Calculating cash flows from operating activities
by subtracting cash paid to suppliers, employees, & other cash expenditures from cash collected from customers.
Direct Method
11. On the statement of cash flows the repayment of the current portion of long term
debt would be classified as a ____________ activity
Financing
12. Calculating cash flows from operating activities
by adjusting net income for deferrals, accruals, and other non expenses.
Indirect method
13. Current assets minus current liabilities.
Net working capital
14. The Free Cash Flow for a firm is CFO minus ______
capital expenditure
15. Debt to asset ratio (market values) greater than 100%.
Insolvent firm
16. The E in the P/E ratio is
found by dividing _______ by ______
• Net income
• # shares outstanding
17. The change in retained earnings is often the product of both an______ and _____ activity.
• Operating
• Financing
18. The four categroies of financial ratios
discussed in class were:
Liquidity, Activity, Profitability, Leverage
19. Current Ratio=
CA

---------

CL
20. Quick ratio, or acid-test ratio =
CA - Inventory

----------------

CL
21. Accounts Receivable Turnover =
Net sales

------------------

Net Accts Receivable
22. Inventory Turnover =
COGS

------------

Inv
23. Total Asset Turnover =
Net Sales

-------------------

Total Assets
24. Debt to Asset ratio =
TL

---------

TA
25. Debt to Equity ratio =
Total Liab

--------------

Stockholders' equity.... (CA-CL)
26. Gross Profit Margin =
Gross Profit ...(net sales-COGS)

-----------------------------------

Net sales
27. Op Profit Margin =
Op profit ....(Net earnings)

--------------------------

Net sales
28. Net Profit Margin =
Net earnings

----------------------

Net sales
29. ROA, or ROI
Net earnings

--------------------

Total Assets
30. ROE
Net earnings

------------------

Stockholders' equity... (ca-cl)
31. Earnings per Common Share =
Net earnings

---------------

Ave Shares Outstanding
32. P/E ratio =
market price of common stock

------------------------------------

earnings per share of stock

### Card Set Information

 Author: bkheath ID: 80616 Filename: AEB FINANCIAL Updated: 2011-04-19 14:25:10 Tags: AEB FINANCIAL Folders: Description: AEB FINANCIAL Show Answers:

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