{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chp6 - Ratios plus Chapter 6 Time Value of Money Anthony...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
Ratios plus Chapter 6: Time Value of Money Anthony Meder, Ph.D. October 13, 2011
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Ratios Activity ratios Asset turnover = net sales / avg. total assets Receivables turnover= net sales / avg. total A.R. Avg. Collection period = 365/receivables turnover Inventory turnover = COGS / average inventory Average days in inventory = 365/inventory turn. Profitability
Background image of page 2
Ratios from chapter 3 Liquidity Ratios Current ratio= current assets/current liabilities Acid-test (quick ratio)= (cash + short-term investments + A/R)/current liabilities Financing Ratios Debt to equity= total liabilities/shrholders’ equity Times interest earned (TIE) = (net income + interest expense + taxes) / interest expense
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Partial Comparative Balance Sheet ACCOUNT 2010 2009 A/R (net of allowance for doubtful accounts of 600 and 800 respectively) 12,000 16,000 Inventory 36,000 30,000 Total current assets 78,000 72,000 Total assets 150,000 138,000 Total current liabilities 52,000 36,000 Total liabilities 100,000 98,000 Total Equity 50,000 40,000 Net Sales in 2010: $300,000; COGS in 2010: 210,000; net income 2010: 24,000
Background image of page 4
TIME VALUE OF MONEY Chapter 6
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Time value of money?
Background image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}