Exam 3 Flashcards
Net Profit Margin
Net income/sales
Market to book value
Market capitalization/book value
#of shares outstandingxshare price)/(Assets-Liabilites
Working capital
Current assets-current liabilities
Current ratio
Current ratio/current liabilities
Debt to equity
Total liabilities/total equity
Return on assets (short)
Net income/average total assets
Return on assets (long)
Net profit margin x total asset turnover
Fixed asset turnover ratio
Net sales/Average net fixed assets
Price to earnings ratio
Market value per share/Earnings per share
Return on equity
Net income/stockholders equity
Gross profit
Sales-COGS
Gross Profit Margin
Sales-COGS/Sales
EPS
Net income/average number of shares outstanding
The declaration and payment of a cash dividend
Reduces both assets and retained earnings by the amount of the dividend
Cash flows from operating
Related to production and delivery of goods and services, interest expense, interest income
Cash flowsfrom investing
Puchasing amd disposing of long term assets, investments, loans to others
Cash flows from finacing
Issuing or buying back stocks or bonds, paying dividends, borrowing cash
Additional paid in capital
(Sales price x number of shares sold)-common stock at par
Common stock at par
Par value x number of shares sold
Accrued liabilites
Onligations related to expenses that have been incurred but will not be paid until the subsequent period
When should accrued liabilites be recodered
When earned
Calculate interest
Principal x interest rate x time
Contingent liabilites
Potential liablities; may or may not become an actually liability
Account for probably measurable contigent liablility
Arrrue loss on income statement and balance sheet
