ermine to which formula does each of the following refers:, Significance of Financial Ratios Used to Measure Profitabilityh. Profitability in the use of working capitalAmount of profit per peso of salesProfit per peso of current assets every time3.i.Overvaluation or undervaluation of stockb.j.Rate at which owner's equity is being usedcurrent assets are usedk. Amount of actual returns per share ofRate at which earnings per share arecapitalizedd. Earnings of the corporation on a per shareof capital stock basisNumber of times average current assets areC.common stockEfficiency in the use of total resourcesm. Numbers of times working capital is usedPortion of sales absorbed by operating costsProfitability in the use of invested capitalProfit earned every time working capital is1.n.e.0.usedp.f.Ratio of distributed earnings to earnings perusedshareq. Profitability in the use of current assetsInsufficiency of current assetsg. Adequacy of markup on salesr.

The first 3 subdivisions are answered for you. Please resubmit specifying the question number you…

Answered: Amount of profit per peso of sales…

Amount of profit per peso of sales Profit per peso of current assets every time 3. b. current assets are used Rate at which earnings per share are C. capitalized

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

ermine to which formula does each of the following refers:
, Significance of Financial Ratios Used to Measure Profitability
h. Profitability in the use of working capital
Amount of profit per peso of sales
Profit per peso of current assets every time
3.
i.
Overvaluation or undervaluation of stock
b.
j.
Rate at which owner's equity is being used
current assets are used
k. Amount of actual returns per share of
Rate at which earnings per share are
capitalized
d. Earnings of the corporation on a per share
of capital stock basis
Number of times average current assets are
C.
common stock
Efficiency in the use of total resources
m. Numbers of times working capital is used
Portion of sales absorbed by operating costs
Profitability in the use of invested capital
Profit earned every time working capital is
1.
n.
e.
0.
used
p.
f.
Ratio of distributed earnings to earnings per
used
share
q. Profitability in the use of current assets
Insufficiency of current assets
g. Adequacy of markup on sales
r.

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