sing the information from 27A prepare the following ratios: gross profit margin profit margin return on assets earnings per share current ratio acid test ratio debt ratio Indicate what each is used for (ie: measuring efficiency, solvency etc)

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 27MCQ
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Using the information from 27A prepare the following ratios:

  • gross profit margin
  • profit margin
  • return on assets
  • earnings per share
  • current ratio
  • acid test ratio
  • debt ratio

Indicate what each is used for (ie: measuring efficiency, solvency etc) 

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