Quizizz 4.2.4/4.2.5 A closer Look at Ratios ACNT2

A company produced $4.3M in net sales with a total of $623,465 in gross profits. What is the Gross Profit Margin for the company?

• 14%

• 69%

• 28%

• 7%

Which equation is used to determine a company's overall operating efficiency, incorporating all of the expenses of daily business activity?

• Cash flow from operating activities / Net sales

• EBIT / Net Sales

• Gross Profit / Net Sales

• Net Income / Net Sales

A company's EBIT is 417,643. Its net sales is $4.3M. What is the company's Operating Profit Margin?

• 1%

• 50%

• 10%

• 73%

Which equation is used to identify company profitability after consideration of all expenses?

• Cash flow from operating activities / Net sales

• EBIT / Net Sales

• Gross Profit / Net Sales

• Net Income / Net Sales

A company's cash flow from operating expenses is $732,514. Its net sales is $4.3M. What will be the Cash Flow Margin be?

• 17%

• 5.88%

• 11.50%

• 12%

A company's current ratio is 2. Its current assets are $50,000. What is the amount of current liabilities?

• $50,000

• $25,000

• $75,000

• $100,000

Calculating a return on assets or investments involves dividing by _____.

• total liabilities

• net sales

• total assets

• net income

A company has an accounts receivable turnover of 15. What is its average collection period?

• 12.2 days

• 48.6 days

• 15 days

• 24.3 days

A company has net sales of $200,000 and total expenses of $130,000, including $15,000 in taxes and $2,000 in interest payments. Its operating ratio is _____.

• 0.57

• 0.74

• 1.54

• 1.77

A business has a net operating income of $2,000,000 and a DSCR of 5. What is the cost of its total debt service?

• $40,000

• $400,000

• $20,000

• $200,000