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Unformatted text preview: Average common stockholders' equity = Average total stockholders' equity - Average preferred stockholders' equity Working Capital = Current assets - Current liabilities Current ratio = Current assets Current liabilities Acid-test ratio = (Cash + Marketable securities + Accounts receivable + Short-term notes receivable) Current liabilities Accounts receivable turnover = Sales on account Average accounts receivable balance Average collection period = 365 days Accounts receivable turnover Accounts receivable turnover = Sales on account Average accounts receivable balance Inventory turnover = Cost of goods sold Average inventory Average sale period = 365 days Inventory turnover Times interest earned = (Earnings before interest expense and income taxes) Interest expense Debt-to-equity ratio = Total liabilities Stockholders' equity...
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- Spring '08