Match each term with its definition.

Balance Sheet

Net working capital

Balance Sheet Identity

Liquidity

current assets

Net fixed assets

Income Statement

Depreciation

Average tax rate

Marginal tax rate

Current Liabilities

Accumulated Retained Earnings

Additions to retained earnings

Plowback ratio

Dividend payout ratio

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Current assets less current liabilities

Financial statement summarizing a firm's performance over a period of time.

Short-term liabilities that will convert to cash (i.e. be paid) within one year.

Assets that will be (or can be) converted to cash within one year.

The total of all additions to retained earnings, shown on the balance sheet.

The percentage of net income that is reinvested in the company

Financial statement showing a firm's accounting value on a particular date.

Total Assets = Total Debt + Total Equity

Total taxes paid divided by total taxable income: an accurate reflection of actual taxes paid.

The speed and ease with which an asset can be converted to cash.

Amount of tax payable on the next dollar earned.

A dollar-amount portion of net income that is reinvested in the company.

The percentage of net income that is paid out as dividends.

A noncash expense charged against revenues for the purposes of tax reduction.

Long-term assets, net of all depreciation applied to those assets.