Match each of the following ratios with the formula used

Match each of the following ratios with the formula used to compute it:

—–1. Working capital

—–2. Current ratio

—–3. Quick ratio

—–4. turnover

—–5. Average days to collect

—–6. Inventory turnover

—–7. Average days to sell inventory

—–8. Debt to assets ratio

—–9. Debt to equity ratio

—–10. Return on investment

—–11. Return on equity

—–12. Earnings per share

a. Net income ÷ Average total stockholders’ equity

b. Cost of goods sold ÷ Average inventory

c. Current assets – Current liabilities

d. 365 ÷ Inventory turnover

e. Net income ÷ Average total assets

f. (Net income – Preferred dividends) ÷ Average outstanding common shares

g. (Current assets – Inventory – Prepaid expenses) ÷ Current liabilities

h. Total liabilities ÷ Total assets

i. 365 ÷ turnover

j. Total liabilities ÷ Total stockholders’ equity

k. Net credit sales ÷ Average accounts receivables

l. Current assets ÷ Current liabilities

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