ratios

Question 1

what is the formula for break even point in units?

Answer 1

break even point (in units)= total fixed cost divided by contribution to fixed cost per unit

Question 2

what is the formula for break even point in dollars?

Answer 2

breakeven point in dollars= total fixed cost devided by 1-variable cost per unit/ price

Question 3

what is the formula for current ratio?

Answer 3

current ratios= current assets divided by current liabilities

Question 4

what is the formula for acid-test ratio?

Answer 4

acid-test ratio= (current assets- inventories) divided by current liabilities

Question 5

what is the formula for inventory turnover ratio?

Answer 5

inventory turnover ratio= cost of goods sold divided by average inventory

Question 6

what is the formula for total asset turnover ratio?

Answer 6

total asset turnover ratio= sales divided by average total assets

Question 7

what is the formula for gross profit margin?

Answer 7

gross profit margin= gross profit divided by sales

Question 8

what is the formula for net profit margin?

Answer 8

net profit Margin= net income divided by sales

Question 9

what is the formula for return on equity?

Answer 9

net income divided by average equity

Question 10

what is the debt ratio formula?

Answer 10

total liabilities divided by total assets

Question 11

what is the long-term debt to equity formula?

Answer 11

long-term debt to equity= long-term debt divided by owners equity