Final Exam Flashcards
(24 cards)
A Bond Sells at a Premium When…
Market Rate < Stated Rate
Current Ratio
Current Assets/Current Liabilities
Current debts
Working Capital
Current Assets - Current Liabilities
Current debts
Return on Equity
Net Income/Average Stockholders Equity
Profit from shareholders
Market to Book Ratio
Market Cap/Book Value
How much market will pay for $1 of book value
Market Cap is Calculated by…
of Common Shares Outstanding x Price Per Share
Gross Profit Margin
Gross Profit/Sales
Pay operating expenses
Net Profit Margin
Net Income/Sales
Profit from sales
EPS
Net Income/Average # of Outstanding Stocks
Measures performance of company
Price to Earnings Ratio
Share Price/EPS
(
Fixed Asset Turnover Ratio
Net Sales/Net Fixed Assets
Debt to Equity
Total Liabilities/Shareholders Equity
For every $1 of equity there’s __% of debt
Return on Assets
Net Incomes/Average Total Assets
For every $1 of assets, there is __ for net income
Retained Earnings Equation
End RE = Beg. RE + Net Income - Dividends
Cash Flow Operating
Related to revenues and expenses and net income
Cash Flow Investing
The purchase and disposal of long-lived assets and investments in securities of other companies.
Cash Flow Financing
Issuing or buying back stocks or bonds, paying dividends, borrowing cash long-term
Cash Flow Equation
▵Cash = ▵Liabilities - ▵Noncash Assets + ▵Equity
AR ^
-
AP ^
+
Depreciation
+
Merchandise ^
-
Inventory ^
+
Payable ^
+
