Which of the following financial ratios is not a measure of operating profitablitlity? Return on Assets Ratio Inventory Turnover Ratio None of these Gross profit margin ratio net profit on sales ratio

Which of the following items in the balance sheet does NOT have a constant relationship with sales in general when we use the percent of sale method to construct pro forma financial statements?     Retained earnings     Inventory     Accounts receivables     Accounts payables

A weakness of the percent-of-sales method to preparing a pro forma income statement is

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

A bank that is examining the ratio of annual costs of goods sold to average inventory, is examining which category of ratios?  a.Profit measures b.Operating efficiency measures c.Liquidity measures d.Expense control measures

Compared to using the weighted average cost method to account for inventory, during aperiod in which prices are generally rising, the current ratio of a company using the FIFOmethod would most likely be:A. lower.B. higher.C. dependent upon the interaction with accounts payable.

Which of the following would not be used as a summary performance measure when using market multiples to determine value?     Stock price     Net operating assets     Net operating profit after tax     Book value

1 When examining the current ratio and looking at the company's liquidity, which of the following ratios would NOT assist with evaluating liquidity?   A) inventory turnover   B) receivables turnover   C) quick ratio   D) profit margin

Which of the following statements is true with regard to the gross profit ratio? An increase in cost of goods sold would increase the gross profit ratio (assuming sales remain constant). An increase in the gross profit ratio may indicate that a company is efficiently managing its inventory. An increase in selling expenses would lower the gross profit ratio. a.1 b.2 c.1 and 2 d.2 and 3

Which of the following is not one of the typical uses of financial ratios? a. Comparisons to a company’s historic values b. Comparison to benchmarksc. Comparison to competitors’ values d. Comparison to zero with positive values indicating desirable ratios and negative values indicating undesirable ratios.