INCOME STAEMENT Particulars Amount ($) Sales 200000 Cost of Goods Sold -95000 Gross Profit 105000 Utility -20000 Advertisement expense -1000 Administration expense -2000 Earning Before Interest and Tax (EBIT) 82000 Interest -10,000 Earning Before Tax (EBT) 72,000 Таx -5000 Earning After Tax (EAT) 67,000 Note :- The cost of raw material is already included in cost of goods sold. So, it has not been mentioned separetely in the income statement.

Business ratios of financial statements are generally categorized as one of the following areas, EXCEPT Select one: a. Leverage b. Profitability c. Net Present Value d. Liquidity e. Efficiency (or Activity)

Use the attached information to complete the ratio analysis.  The Ratio Analysis is for Profitability.

Return on equity (ROE) using the traditional DuPont formula equals to   A.   (net profit margin) (interest component) (solvency ratio)   B.   (net profit margin) (interest component) (liquidity ratio)   C.   (net profit margin) (total asset turnover) (quick ratio)   D.   (net profit margin) (total asset turnover) (solvency ratio)

1. Which of the following is referred to as the Accounting Equation? Assets Liabilities + Equity Equity Liabilities + Assets Liabilities Assets + Equity Assets = Liabilities - Equity = 2. Which of the following make up the Finance Equation? (select all that apply) Revenues = Price x Volume Costs = Fixed + Variable Profit Revenues-Costs Income Sales - COGS

Which of the following is a solvency ratio?   a. Times interest earned. b. Inventory turnover ratio. c. Profit margin. d. Price-earnings ratio.

26. Given the following financial data for Alpha Company, calculate the ratios listed below the data. (Compute all ratios and percents to 2 decimal points.) Sales (all on credit) Cost of Goods Sold $650,000 422,500 Income before 78,000 Income Taxes Net Income 54,600 Ending Beginning Balances Balances Cash $19,500 $15,000 Accounts Receivable 65,000 59,800 (net) Merchandise 71,500 66,300 Inventory Plant and Equipment (net) 195,000 183,900 Total Assets $351,000 $325,000 Current $74,100 $100,200 Liabilities Long-Term Notes Payable 97,500 100,000 Stockholders' 179,400 124,800 Equity Total Liabilities and Stockholders' $351,000 $325,000 Equity

12. Which two ratios multiplied by each other equal Return on Total Assets? (A) Profit Margin (B) Return on Equity (C) Current Ratio (D) Price Earnings Ratio (E) Total Asset Turnover

Accounting: type question:,,,,,, While calculating purchase price, the following values of assets are considered A. Book value B. New values fixed C. Averagevalues D. Market values

5. Know the calculations for all of the following ratios (see ratio sheet that can be used on the exam) and know the category (listed in Question 4) they fall in: Formula Category/Use Ratio Working Capital Current Assets - Current Liabilities Net credit sales/Average Accounts Receivable Turnover accounts receivable Asset Turnover Net sales/Average total assets Net income/Average total stockholders' equity Total liabilities/Total stockholders equity Net income/Net sales Return on Equity (ROE) Debt to equity Return on Sales (ROS) (also known as Net Margin Current Assets/Current Liabilities Cost of goods sold/Average inventory Quick assets/Current Current Ratio Inventory Turnover Quick Ratio liabilities Dividend Yield Dividends per share/Market price per share Net earnings available for common stock/Number of outstanding common shares Net income/Average total Earnings per Share (EPS) Return on Investment (ROI) assets Price Earnings Ratio (P/E) Market price per share/Earnings per share…