Formulas

Question 0

Current ratio

Answer 0

CA/CL

Question 1

Working cap

Answer 1

CA - CL

Question 2

Acid test

Answer 2

(Cash equivalents + mkt sec + net receivables)/CL

Question 3

Cash ratio

Answer 3

(Cash equiv + mkt sec)/CL

Question 4

AR T/O

Answer 4

Net credit sales/avg net receivables

Question 5

AR T/O in days

Answer 5

365/AR T/O

Question 6

Inventory T/O

Answer 6

COGS/avg inv

Question 7

Operating cycle

Answer 7

AR T/O in days + inv T/O in days

Question 8

Working cap T/O

Answer 8

Sales/avg working cap

Question 9

TA T/O

Answer 9

Net sales/avg TA

Question 10

Net profit margin

Answer 10

NI/net sales

Question 11

Return on TA

Answer 11

NI/avg TA

Question 12

DuPont ROA

Answer 12

Net PM * TAT

Net PM = NI/net sales
TAT = net sales/avg TA

Question 13

ROI

Answer 13

(NI + int exp (1-T))/avg (LTL + equity)

Question 14

Return on common equity

Answer 14

(NI - pref div)/avg common equity

Question 15

Debt to equity ratio

Answer 15

Total liab/CS equity

Question 16

Debt ratio

Answer 16

TL/TA

Question 17

TIE

Answer 17

Recurring int BIT/interest

Question 18

Operating CF to total debt

Answer 18

Op CF/total debt

Question 19

Cash to accrual

Answer 19

Revenue, cash basis
\+ receivable (if AR increase +, decrease -)
\+ prepaid
- payable (if AP increase -, decrease +)
- unearned fee
-----------------
Revenue, accrual basis

Or
Cash sales
+ end AR
-beg AR

Question 20

components of OCI (PUFE(R))

Answer 20

Pension change in funded status
Unrealized g/l on AFS & debt securities transferred to AFS
Foreign currency items (hedge, translation)
Effective portion of CF hedge

Question 21

EPS

Answer 21

(NI-PS div (decl or undecl))/weighted avg sh outstanding

Question 22

What happens in periods of increasing prices?

Answer 22

FIFO
BI up, COGS down, EI up, NI up

LIFO
BI down, COGS up, EI down