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33 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Current Ratio
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current assets ÷ current liabilties
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liquidity ratio
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quick (acid test) ratio
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(cash equivalents + marketable securities + net receivables) ÷ current liabilities
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liquidity ratio
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Accounts Receivable Turnover
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net credit sales ÷ average balance in receivables
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Receivable Ratio
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Days' Sales in Receivables
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days in a year ÷ accounts receivable turnover ratio
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Receivables Ratio
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Inventory Turnover Ratio
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COGS ÷ average balance in inventory
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Inventory Ratio
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Days' Sales in Inventory
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days in year ÷ inventory turnover ratio
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Inventory Ratio
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Operating Cycle
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days' sales in receivables + days' sales in inventory
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Cash Conversion Cycle
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avg collection period + days' sales in inventory - average payables period
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Accounts Payable Turnover
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COGS ÷ avg balance in accounts payable
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Average Payable Period
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days in year ÷ accounts payable turnover
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Total Assets Turnover
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net total sales ÷ average total assets
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Fixed Assets Turnover
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net total sales ÷ average net fixed assets
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Debt-to-Equity Ratio
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total liabilities ÷ total equity
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Solvency & Leverage
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Times-Interest-Earned Ratio
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EBIT ÷ interest expense
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Solvency & Leverage
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Profit Margin on Sales
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net income ÷ sales
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Profitability Ratio
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Return on Assets
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net income ÷ average total assets
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Profitability Ratio
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Return on Equity
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net income ÷ average total equity
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Profitability Ratio
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Return on Common Equity
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(net income - preferred dividends) ÷ avg common equity
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Profitability Ratio
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Basic Earning Per Share
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income avail to common shareholders ÷ weighted avg common shares outstanding
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Corporation Valuation Measures
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Book Value Per Common Share
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net assets available to common share holders ÷ ending common shares outstanding
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Corporation Valuation Measures
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Price-to-Earnings Ratio
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price per common share ÷ basic EPS
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Corporate Valuation Measures
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Required Minimum Periodic Pension Expense
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service cost + interest cost - expected return on plan assets +/- amort of net gain or loss +/- amort of prior service cost or credit
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Entry to Record Pension Expense
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DR Pension Expense
CR Pension Liability |
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Interest Cost (Pension)
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beginning PBO × discount rate
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Expected Return on Plan Assets
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market related value × long-term rate
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PBO Calculation
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beginning PBO + service cost + interest cost + prior service cost - prior service credit - benefits paid +/- liability gain or loss
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Fair Value of Plan Assets
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beginning value + contributions - benefits paid +/- actual return on plan assets
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Asset Gain (Pension)
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actual return > expected return
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Asset Loss (Pension)
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actual return < expected return
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Pension Liability
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PBO - fair value of plan assets
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Pension Asset
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fair value of plan assets - PBO
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COGS- Retailer
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beginning inventory
+ purchases - purchase discounts + freight in - ending inventory |
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COGS- Manufacturer
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beginning inventory
+ purchases - purchase discounts + freight in - ending materials inventory + direct labor costs + manufacturing overhead - ending work in process + beginning finished goods inventory - ending finished goods inventory |
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