5.) For each definition, list the “ratio category (or grouping)” that is described by filling in the blanks from (a) to (f) and provide one example for each category or grouping. a) Determines a company’s ability to pay off short term obligations or debts as they come due.________________________ b) Relates company’s internal performance to the external judgment of the marketplace in terms of what it is worth.________________________ c) Identifies percentage of earnings paid out to shareholders and what is reinvested for internal growth.________________________ d) Speed at which company turns over its inventory, receivables and long-term assets.________________________ e) How a company is financed between debt [lenders] and equity [owners].________________________ f) Measures return on sales, assets and total capital.________________________

ratio analysis is performed by the company so as to know the performance and no the financial health…

Answered: category (or grouping)” that is…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity

Section: Chapter Questions

Problem 1RE

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5.) For each definition, list the “ratio category (or grouping)” that is described by filling in the blanks from (a) to (f) and provide one example for each category or grouping.

a) Determines a company’s ability to pay off short term obligations or debts as they come due.

________________________

b) Relates company’s internal performance to the external judgment of the marketplace in terms of what it is worth.

________________________

c) Identifies percentage of earnings paid out to shareholders and what is reinvested for internal growth.

________________________

d) Speed at which company turns over its inventory, receivables and long-term assets.

________________________

e) How a company is financed between debt [lenders] and equity [owners].

________________________

f) Measures return on sales, assets and total capital.

________________________

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