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22 Cards in this Set

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