Final Exam Review For Pharm Management

Front 1

Current Ratio

Back 1

i. Current Assets/Current Liabilites
ii. Range is greater than or equal to 2:1

Front 2

Acid Test Ratio

Back 2

i.(Cash+Accounts Receivable)/Current Liabilites
ii.Range is greater than or equal to 1:1

Front 3

(Current Liabilities/Average Inventory) * 100

Back 3

i. Average Inventory = (Beginning Inventory + Ending Inventory)/2
ii.Range is less than or equal to 50%

Front 4

(Total Liabilites/Net Worth) *100

Back 4

i.Range is less than or equal to 100%

Front 5

(Fixed Assets/Net Worth) * 100

Back 5

i. Range is in-between 25-50%

Front 6

(Long Term Debt(Funded Debt)/Net working capital) * 100

Back 6

i .Range is less than or equal to 50%

Front 7

Inventory Turnover Ratio

Back 7

i. Cost of Goods Sold/Average Inventory
ii. Range is 3 to 8

Front 8

Net Sales/average inventory

Back 8

i. Range is 5 to 12

Front 9

Net Working Capital (N.W.C) Turnover

Back 9

i. Net Sales/N.W.C.
ii. Range is 3 to 8
iii. N.W.C. = Current Assets - Current Liabilities

Front 10

Degree of newness of fixed assets

Back 10

i. Fixed assets/original purchase prices
ii. Range is greater than 50%

Front 11

A.R.C.P

Back 11

i. Ending Accounts Receivable Outstanding/(Annual Credit sales/365)
ii. Range is 30 to 40 days
iii. Credit will vary and be given

Front 12

A.P.C.P

Back 12

i. Ending Accounts Payable Outstanding/(Annual Purchases/365)
ii. Range is 15 to 25 days

Front 13

(Net Profit/Net Sales) * 100

Back 13

i. Range is in between 3 to 8%

Front 14

Return on Net Worth

Back 14

i. (Net Profit/Net worth) * 100
ii. Range is in between 20 to 30%
iii. Net Worth = Total Assets - (Total Liabilities + Long Term Liabilities)

Front 15

(Net Profit/ Total Assets) * 100

Back 15

i. Range is greater than 20%