1. Provide the equation for each ratio listed below.

2. What does each ratio listed tell about the company?

3. Compare the company ratios to the standard ratios, and give an overall analysis of the company.

 

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Gross Profit Margin Net Profit Margin Earnings per Share Return on Assets Debt to assets ratio Current ratio Inventory Turnover Days in Inventory Average receivable turnover Average collection period Company Ratios 41.04% 12.21% .40 6.86% .44 .53 13.22 27.61 8.38 43.56 Standard Ratios 40.00% 15.20% .80 11.00% .50 1.50 15.00 24.33 15.00 24.33 Gross Profit Margin Net Profit Margin Earnings per Share Return on Assets Debt to assets ratio Current ratio Inventory Turnover Days in Inventory Average receivable turnover Average collection period Company Ratios 41.04% 12.21% .40 6.86% .44 .53 13.22 27.61 8.38 43.56 Standard Ratios 40.00% 15.20% .80 11.00% .50 1.50 15.00 24.33 15.00 24.33

Answer rating: 100% (QA)

ANSWER 1 The equations for each ratio listed are as follows Gross Profit Margin Revenue Cost of Goods Sold Revenue Net Profit Margin Net Income Revenue Earnings per Share Net Income Number of Shares O... View the full answer