financial statements and ratios

What is the formula for calculating gross profit margin?

• Gross profit margin = Net sales / Net income
• Gross profit margin = Net sales / Gross profit
• Gross profit margin = Net income / Net sales
• Gross profit margin = Gross profit / Net sales

Which financial statement shows the company's assets, liabilities, and equity?

• Balance sheet
• Statement of retained earnings
• Income statement
• Statement of cash flows

Which financial ratio measures the company's liquidity?

• Current ratio
• Return on equity
• Debt-to-equity ratio
• Gross profit margin

Which financial ratio measures the company's efficiency?

• Current ratio
• Asset turnover ratio
• Return on equity
• Debt-to-equity ratio

Which financial statement shows the company's revenues and expenses?

• Income statement
• Statement of retained earnings
• Balance sheet
• Statement of cash flows

What is the formula for calculating return on assets (ROA)?

• ROA = Net income / Total revenues
• ROA = Net income / Total equity
• ROA = Net income / Total assets
• ROA = Net income / Total liabilities

What is the formula for calculating cash flow from operating activities?

• Cash flow from operating activities = Net income + Depreciation
• Cash flow from operating activities = Net income + Amortization
• Cash flow from operating activities = Net income - Depreciation
• Cash flow from operating activities = Net income - Amortization

What is the formula for calculating asset turnover ratio?

• Asset turnover ratio = Net sales / Total assets
• Asset turnover ratio = Net income / Total equity
• Asset turnover ratio = Net sales / Total equity
• Asset turnover ratio = Net income / Total assets

Which financial statement shows the company's cash inflows and outflows?

• Income statement
• Statement of cash flows
• Statement of retained earnings
• Balance sheet

What is the formula for calculating return on sales (ROS)?

• ROS = Net sales / Total assets
• ROS = Net income / Net sales
• ROS = Net income / Total assets
• ROS = Net income / Total equity