Solution-There are no universally accepted definitions of

There are no universally accepted definitions of financial

Reference no: EM13573093

There are no universally accepted definitions of financial ratios, but five of the following ratios are clearly incorrect. Substitute the correct definitions.

a. Debt-equity ratio = (long-term debt + value of leases)/(long-term debt + value of leases + equity)

b. Return on equity = (EBIT_tax)/average equity

c. Profit margin = net income/sales

d. Days in inventory = sales/(inventory/365)

e. Current ratio = current liabilities/current assets

f. Sales-to-net-working-capital = average sales/average net working capital

g. Quick ratio = (current assets - inventories)/current liabilities

h. Times-interest-earned = interest earned X long-term debt

Reference no: EM13573093

Questions Cloud

If the company pursues the investment opportunity and : westerville company reported the following results from last years

Equal payments will be made over a 3 year period the first : you have borrowed 25000.00 at an interest rate of 16. equal payments will be made over a 3 year period. the first

The standard factory overhead rate is 750 per machine hour : the standard factory overhead rate is 7.50 per machine hour 6.20 for variable factory overhad and 1.30 for fixed

Mozart was considered a child prodigy performing throughout : mozart was considered a child prodigy performing throughout europe. cite your view on the notion of the child star and

There are no universally accepted definitions of financial : there are no universally accepted definitions of financial ratios but five of the following ratios are clearly

Prior to the year-end adjustment to record bad debt expense : prior to the year-end adjustment to record bad debt expense for 2014 the general ledger of stickler company included

Your company can lease a truck for 10000 a year paid at the : 1. your company can lease a truck for 10000 a year paid at the end of the year for six years or it can buy the truck

At the end of the fiscal year larsen realty corporation : larsen realty corporation purchased a tract of unimproved land for 51000. this land was improved and subdivided into

Outline the key components and findings of the study for : presentation of a research articleoutline the key components and findings of the study for use as a presentation

User Account

All Pages

There are no universally accepted definitions of financial

Reference no: EM13573093

Reference no: EM13573093

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Financial reporting and analysis

A report on financial accounting

Describe the types of financial ratios

Differences between sole proprietorship and corporation

Prepare a cash budget statement

What are the implied interest rates

State pricing theory and no-arbitrage pricing theory

Small business administration

Effect of financial leverage

Evaluate the basis for the payment to the lender

Importance of opps, ipps, mpfs and dmepos

Time value of money

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT