Directions: Read the instructions and all the items in each test type carefully. You may use your calculators and an additional sheet of paper for this quiz. (40 points) I. MATCHING TYPE: Match the formulas in COLUMN A with the financial ratio terms in COLUMN B. Write the letter of your answer in the space provided. (10 items x 2 points) COLUMN A COLUMN B 1. Current assets / Current liabilities A. Acid-test ratio 2. Current assets - Inventories / Current liabilities B. Debt ratio 3. Cash and Cash equivalents / Current liabilities C. Return on equity ratio 4. Total liabilities / Total assets D. Asset turnover ratio 5. Total liabilities / Shareholder's equity E. Interest coverage ratio 6. Net income / Shareholder's equity F. Cash ratio 7. Net income / Total assets G. Inventory turnover ratio 8. Cost of goods sold / Average inventory H. Debt to equity ratio 9. Net sales / Total assets I. Return on assets ratio 10. Operating income / Interest expenses J. Current ratio II. COMPUTATION: Perform what is being asked. (4 items x 5 points) A. Analyze the balance sheet and income statement and compute the following financial ratios: 1. Acid-test ratio 2