FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:For each ratio listed, identify whether the change in ratio value from the Prior Year to the Current Year is usually regarded as
favorable or unfavorable.
Ratio
Current Year
Prior Year
Change
1. Profit margin
9%
55 %
7%
54 %
2. Debt ratio
3. Gross margin
36 %
45 %
4. Acid-test ratio
5. Accounts receivable turnover
6. Basic earnings per share
1.20
1.23
5.0
6.3
%24
1.20
1.08
7. Inventory turnover
8. Dividend yield
5.0
4.9
4.0 %
3.8 %
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