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Unformatted text preview: Rate Earned on Average Total Rate Earned on Average Total Assets
s s (January 1 Total assets + December 31 Total Assets) / 2 = Average Total Assets
Net Income after Federal Income Tax / Average Total Assets = Rate Earned On Average Total Assets Rate Earned on Average Rate Earned on Average Stockholders Equity
January 1 Stockholders’ Equity+ December 31 Stockholders’ Equity/ 2= Average Stockholders’ Equity
s Net Income after Federal Income Tax / Average Stockholders’ Equity = Rate Earned on Average Stockholders Equity
s Rate Earned on Net Sales
Rate Earned on Net Sales
s Net Income after Federal Income Tax / Net Sales = Rate Earned on Net Sales Earnings per Share
Earnings per Share
s Net Income after Federal Income Tax / Shares of Capital Stock Outstanding = Earnings per Share PriceEarnings Ratio
PriceEarnings Ratio
s Market Price per Share / Earnings per Share = PriceEarnings Ratio Accounts Receivable Accounts Receivable Turnover Ratio
(Beginning Book Value of Accounts Receivable + Ending Book Value of Accounts Receivable) / 2 = Average Book Value of Accounts Receivable
s Net Sales / Average Book Value of Accounts Receivable = Accounts Receivable Turnover Ratio
s Average Number of Days for Payment
Average Number of Days for Payment
s Days in Year / Accounts Receivable Turnover Ratio = Average Number of Days for Payment Merchandise Inventory Merchandise Inventory Turnover Ratio
(Jan 1 Merchandise Inventory + Dec 31 Merchandise Inventory) / 2 = Average Merchandise Inventory
s Cost of Merchandise Sold / Average Merchandise Inventory = Merchandise Inventory Turnover Ratio
s Working Capital
Working Capital
s Total Current (prior) Assets – Total Current (prior) Liabilities = Working Capital Current Ratio
Current Ratio
s Total Current (prior) Assets / Total Current (prior) Liabilities = Current Ratio AcidTest Ratio
AcidTest Ratio
s Total Quick (cash and accounts receivable) / Total Current Liabilities = Acid – Test Ratio Debt Ratio
Debt Ratio
s Total Liabilities / Total Assets = Debt Ratio Equity Ratio
Equity Ratio
s Total Stockholders’ Equity / Total Assets = Equity Ratio Equity Per Share
Equity Per Share
s Total Stockholders’ Equity / Shares of capital Stock Outstanding = Equity per Share THE END
THE END
Done By Tamara Wiley ...
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This note was uploaded on 07/17/2011 for the course ACCT 102 taught by Professor Martinez during the Summer '11 term at Rio Hondo College.
 Summer '11
 Martinez

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