Can someone verify that these formulas are correct?

Formula Sheet

CH 1

Assets = Liabilities + Equity

Income = Revenues Expenses

Gross Profit (Gross Margin) = Revenues - COGS

Return on equity = Net Income/Stockholders' Equity

Average Stockholders' Equity= Beg SE + End SE2

Debt-to-equity ratio= Total liabilities/Total SE

CH 2

Beginning Retained Earnings

+ Net Income (or Net Loss)- Dividends= Ending Retained Earnings

Net Working Capital = Current Assets Current Liabilities

Current Ratio=Current assets/Current liabilities

Quick Ratio=Cash+Short term securities + Accounts receivable/Current liabilities

CH 4

Convert Sales Revenues to Cash Received from Customers

Cash Flow = Net Income (Sales Revenue) Change in() A/R + Unearned Revenue

Convert Cost of Goods Sold to Cash Paid for Merchandise Purchased

Cash Flow = Net Income (COGS Expense) - Inventory + A/P

Convert Wages Expense to Cash Paid to Employees

Cash Flow = Net Income (Wage Expense) + Wages Payable

Other Adjustments

Cash Flow = Net Income (Insurance Expense) - Prepaid Insurance

Cash Flow = Net Income Income Item - Other Receivables

Cash Flow = Net Income (Interest Expense) - Interest Payable

Cash Flow = Net Income (Tax Expense) - Tax Payable

Eliminate Depreciation Expense and other Noncash Operating Expenses

Cash Flow = Net Income + Depreciation Expense

Net Income + Adjustments = Cash from Operations

Net Income + Depreciation Expense - Operating Assets + Operating Liabilities =Cash from Operations

Indirect Method

Net Income Adjustments = Cash flow from operating activities

Operating Cash Flow to Current Liabilities=Operating Cash Flow/ Current Liabilities

Operating Cash Flow to Capital Expenditures=Operating Cash Flow/Annual Capital

Expenditures

Free cash flow = Operating Cash Flow Net Capital Expenditure

Cash = Liabilities + SE - Noncash Assets

CH 5

Return Measures:

ROE=Net Income/ Stockholders' equity

ROE=Net Profit Margin x Asset Turnover x Financial Leverage

Net Profit Margin=Net Income/Sales

Financial Leverage=Avg Total Assets/Avg SE

Avg Stockholders Equity=Beg SE + End SE2

ROA=Earnings without interest expense EWI/ Total Assets

ROA = Profit Margin x Asset Turnover

Avg Total Assets=Beg Total Assets + End Total Assets2

EWI=Net Income + [Interest expense x (1 Statutory Tax Rate)]

Return on Financial Leverage (ROFL) = ROE ROA

Profitability Measures:

Profit Margin=EWI/Sales Revenue

Gross Profit Margin (GPM)=Sales Revenue COGS/Sales Revenue

Expense-to-sales (ETS)=Individual expense items/Sales Revenue

Turnover Ratios

Asset Turnover (AT)=Sales Revenue/Avg Total Assets

Accounts receivable turnover (ART)=Sales Revenue/ Accounts Receivable

Days-Sales-Outstanding=365ART

Inventory turnover (INVT)=COGS/ Inventory

Days-Inventory=365INVT

Property, plant and equipment turnover (PPET)=Sales Revenue/ PP&E

Liquidity Ratios:

Current Ratio=Current assets/Current liabilities

Quick Ratio=Cash+Short term securities + Accounts receivable/Current

liabilities

Operating Cash Flow to Current Liabilities (OCFCL)=Cash Flow from Operations/

Current Liabilities

Cash Burn Rate=Free Cash flow in the period/Number of days in the period

Solvency Analysis:

Debt-to-equity ratio=Total Liabilities/Total Stockholders' Equity

Times Interest Earned=Earnings before interest expense and taxes (EBIT)Interest

Expense

EBIT= Net Income + Interest + Taxes