Question: Provide the following answers for this study guide. Chapter 9 (26 points) the equations that you need to use will be listed in the exam,
Chapter 9 (26 points) the equations that you need to use will be listed in the exam, but you still need to know what comprises the numerator and denominator and how to interpret the ratio. Which ratios show liquidity, solvency or profitability (and what each of those terms mean) Use of common sized financial statements and vertical analysis Quick and current ratios (know what items make up current and quick assets) A/R and Inventory turnover ratios and number of days sales in A/R and inventory Times interest earned Rate earned on assets and on stockholders' equity Ratio of debt (liabilities) to the stockholder's' equity ratio Calculating earnings per share Gross profit and profit margin percentages Price/Earnings ratio and Dividend Yield
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