7 Written Questions

1. cost of goods sold / average inventory
2. cash provided by operations a / average current liabilities
3. (net income - preferred stock dividends) / average common shares outstanding
4. net credit sales / average net receivables
5. net sale s/ average total assets
6. stock price per share / earnings per share
7. 365 days / inventory turnover ratio

6 Multiple Choice Questions

1. gross profit / net sales
   1. Current Ratio
   2. gross profit rate
   3. profit margin ratio
   4. payout ratio
2. current assets / current liabilities
   1. payout ratio
   2. return on assets ratio
   3. Working Capital
   4. Current Ratio
3. cash dividends declared on common stock / net income
   1. payout ratio
   2. profit margin ratio
   3. Working Capital
   4. Current Ratio
4. cash provided by operations - capital expenditures - cash dividends
   1. Current Ratio
   2. free cash flow
   3. Working Capital
   4. payout ratio
5. Current Assets - Current Liabilities
   1. earnings per share
   2. payout ratio
   3. Current Ratio
   4. Working Capital
6. net income/ net sales
   1. gross profit rate
   2. payout ratio
   3. price - earnings ratio
   4. profit margin ratio

6 True/False Questions

1. average collection period → net sale s/ average total assets

   True        False

2. return on common stockholders' equity ratio → (net income - preferred stock dividends)/average common stockholders' equity

   True        False

3. times interest earned ratio → net credit sales / average net receivables

   True        False

4. cash debt coverage ratio → cash provided by operations a / average current liabilities

   True        False

5. return on assets ratio → total liabilities / total assets

   True        False

6. debt to total assets ratio → net income / average total assets

   True        False