Match each ratio that follows to its use. Items may be used more than once.     Indicate the extent to which earnings are being distributed to common stockholders Indicate the ability to pay current liabilities Assess the profitability of the investment by common stockholders Assess how effectively assets are used       Earnings per share (EPS) on common stock Return on common stockholders' equity Current ratio Dividends per share Asset turnover ratio

use the following information to make a Common size income statement

Identify the three primary components of return on common stockholders 'equity.

Which of the following ratios best measures the profitability of a company?    a) Return on equity b) Gross margin c) Current ratio d) Net operating asset turnover

1. Which of the following would appear first in a statement of retained earnings?  Choices; Cash dividend Prior period error Net income Share dividend     2. Which of the following does not appear in a statement of retained earnings?   Choices; Net loss Preference share dividend Other comprehensive income Prior period error

The cumulative balance of other comprehensive income is reported in (Enter 1, 2, 3, or 4 that represents the correct answer): statement of retained earnings income statement assets section of the balance sheet stockholders’ equity section of the balance sheet

Match the following ratio functions with the ratio (place the number of your chosen answer into the box with the border beside the term you think it goes with : Dividend Yield   Debt ratio   Current Ratio   Price/Earnings Ratio   Acid-test ratio   Earnings per share     1.  The amount of net income earned for each share of the company's common stock 2. The percentage of a stock's market value returned to stockholders as dividends each period 3. The ability to pay current liabilities with current assets. 4. The percentage of assets financed with debt. 5. The ability to pay all current liabilities if they come due immediately. 6. The market price of $1 of earnings.

Match each ratio that follows to its use. Items may be used more than once.

Which of the following ratios is used to analyze a company's liquidity? a. Inventory turnover ratio b. Earnings per share c. Return on assets ratio d. Asset turnover ratio

Indicate whether the following are a measure of (a) liquidity, (b) profitability, or (c) leverage. 1. Quick ratio   2. Times interest earned ratio   3. Current ratio   4. Ratio of net sales to assets   5. Return on total assets   6. Accounts receivable turnover   7. Return on stockholders' equity   8. Book value per share of common stock   9. Ratio of liabilities to stockholders' equity   10. Acid-test ratio   11. Earnings per share of common stock   12. Merchandise inventory turnover   13. Working capital