Question

Question 10 For each of tlle following match the description with the best response, Complete Points out of 18.00 Liquidity Ratios These help to discover how long it generally takes for our customers to pay us after ordering. Lower is better. Is an indication of the amount left after subtracting COGS from total sales P Flag question Gross Profit Margin Is how many times has the firm spent and replenished cash in a period Cash Turnover Ratio Return on Common Equity Current Ratio ROA Is an indication of how much profit each dollar of common stock generates Ideally, this should be at least a 1 (higher is better) and measures whether a company can cover short term debt Is a measure of how efficient a firm is at using assets to generate earnings taking debt financing into consideration This category of ratios includes turnover ratios, efficiency ratios, activity ratios, and return ratios This category of ratios is used to determine if a company can pay its debt as it becomes due. Asset Management Ratios Current Ratio

Answer 1

Answer:

a)Days sales outstanding.It represent average no. of days it takes credit sales to be converted into cash or how long it takes a company to collect its account receivable.

b)Gross profit margin.Since the formula for gorss profit margin is;

=Sales-Cost of goods sold

c)Cash turnover ratio.It is no. of times a company has spent through its cash during the reporting period.

d)Return on common equity.

e)Current ratio.Since it indicates a company's ability to meet short term debt.

f)Return on Assets(ROA).Since it indiactes how efficiently company is managing its assets.

g)Financial ratio

h)Current ratio