The following is a list of terms and definitions associated with financial statement analysis tools:
1. Horizontal analysis
2. Current ratio
3. Vertical analysis
4. Quick ratio
5. Profit margin
6. Inventory turnover ratio
7. Return on equity
8. Price to earnings ratio
9. Capital structure
10. Dividend payout ratio
a. A comparison of net income to sales that measures a company's ability to generate profits
b. A liquidity ratio that compares cash and near cash assets to current liabilities
c. The mix of debt and equity that a company uses to generate its assets
d. Compares the income of a company in terms of earnings per share with the price of one share of stock
e. A technique that calculates both the dollar and percentage change in account balances from one term to the next
f. A measure of how many times a company is able to sell its inventory balance in a period
g. A technique that compares account balances within one year
h. A measure of the percentage of earnings that a company pays out as dividends
i. A ratio comparing a company's current liabilities to current assets
j. A comparison of net income to the average balance in stockholders' equity during the year
Required
Match each term with the appropriate definition.