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22 Cards in this Set
- Front
- Back
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gross margin=
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sales-COGS
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owner's equity
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if you're sole proprietor
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stockholder's equity
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if it's a corporation
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income statement
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s
-cogs gross margin -operating expenses ni before taxes -income taxes ni |
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statement of retained earnings
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beginning retained earnings
+ni -dividends ending retained earnings |
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horizontal analysis
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trend analysis
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balance sheet vertical analysis
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divide each item by total assets
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income statement vertical analysis
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divide each item by total sales
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current ratio
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short term debt paying ability- liquidity
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current cash debt coverage ratio
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measures liquidity using net cash from operating activities
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receivables turnover ratio
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liquidity- number of times receivables are collected during the period
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inventory turnover ratio
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liquidity- number of times inventory is sold during the period
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debt to total assets ratio
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solvency- percentage of assets provided by creditors
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times interest earned ratio
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solvency- ability to meet interest payments
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return of common stockholder's equity
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profitability- shows dollars of income for each dollare invested by the owners
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return on total assets ratio
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measures overall profitability
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profit margin ratio
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profitability- percentage of each dollar of sales that results in net income- strong measure of cost control
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asset turnover
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profitability- measures ability to use assets to generate sales
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gross profit rate
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profitability- ability to maintain selling price above its costs- measure of contolling inventory costs
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earnings per share
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profitability- amount of net income earned on each share of common stock
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price-earnings ratio
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profitability- assesment of future earnings from perspective of the stock market
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payout ratio
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profitability- percentage of earnings distributed in the form of cash dividends
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