4. This tells you what part of each peso of sales the company retained as profit. It is a very handy guide in comparing the earnings of this year with previous years to determine the earnings trend of the company. It is also very valueble in comparing earnings of the company with that of other companies in the same industry. Yield on investment b. Eainings per share of stock Margin of profit er1 d. Inventory turnover Return on total assets a. C. e.
4. This tells you what part of each peso of sales the company retained as profit. It is a very handy guide in comparing the earnings of this year with previous years to determine the earnings trend of the company. It is also very valueble in comparing earnings of the company with that of other companies in the same industry. Yield on investment b. Eainings per share of stock Margin of profit er1 d. Inventory turnover Return on total assets a. C. e.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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WILL UPVOTE, just pls help me answer this section with 3 subparts. Thank you. ?

Transcribed Image Text:4. This tells you what part of each peso of sales the company retained as
profit. It is a very handy guide in comparing the earnings of this
year with previous years to determine the earnings trend of the
company. It is also very valueble in comparing earnings of the company
with that of other companies in the same industry.
Yield on investment
b. Eainings per share of stock
C.
a.
Margin of profit
Inventory turnover
Return on total essets
erid d.
e.

Transcribed Image Text:low. It tells you how many times during the year the. average inverntory
was sold and enables you to compure stock inventories of Lhe compy
Loo high of t
5.
This ratio tella whether the compuny's invenlory
4.
with that of olhor comparnies in the same industry.
Inventory divided by total assels
b.
Quick assets divided by current liabililies
Cost 'of goods sold and expenses divided by current assels
d.
8.
Cost of goods sold divided by net sales
Cost of sales divided by average inventory
trade receivables used in the calculation of each ot
с.
е.
6.
How are
following?
Acid test
(quick) ratio
Numerator
b.
Receivable
turnover
Numerator
Denominator
Denominator
Numerator
a.
Numerator
Denominator
Not used
c.
d.
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