E13-6 Matching Each Ratio with Its Computational Formula Match each ratio or percentage with its formula by entering the appropriate letter for each num- bered item. Ratios or Percentages 1. Current ratio 2. Net profit margin 3. Inventory turnover ratio 4. Gross profit percentage 5. Fixed asset turnover 6. Return on equity Formula A. Net income - Total revenue B. (Net sales revenue - Cost of goods sold) - Net sales revenue C. Current assets - Current liabilities D. Cost of goods sold - Average inventory E. Net credit sales revenue : Average net receivables F. (Net income - Preferred dividends) - Average number of common shares outstanding G. Total liabilities - Total assets H. (Net income + Interest expense + Income tax expense) - Interest expense I. Current market price per share = Earnings per share J. (Net income - Preferred dividends) - Average com- mon stockholders' equity K. Total revenue : Average net fixed assets 7. Times interest earned 8. Debt-to-assets ratio 9. Price/earnings ratio 10. Receivables turnover ratio 11. Earnings per share