ch 5-6 Flashcards
(15 cards)
Gross Profit
Net Sales-Cost of Sales
Return on Assets
Net Income/AVERAGE total assets
Total Asset Turnover Ratio
Net Sales(or operating revenues)/ Average Total Assets
How to computer average?
(beginning balance + Ending balance) / 2
Dupont Analysis
ROA = net profit margin x total asset turnover
Question Marks (how still existing?)
low asset turnover
low profit margin
Low-Cost strategy
High asset turnover
Low Profit margin
High-Value Strategy
High Profit Margin
Low Asset turnover
STARS
High Asset Turnover
High Profit Margin
gross profit percentage
Gross Profit/ Net Sales
2/10, n/30 how to pronounce
two ten net thirty
what does 2/10, n/30 mean
customer saves $2 on a $100 purchase by paying on the 10th day instead of the 30th day.
bad debt expense
net CREDIT sales x Bad debt loss rate
receivables turnover ratio
Net sales/Average Net trade accounts receivable
Average collection period
365/receivables turnover ratio
