Font size
WorksheetsPROFITABILITY RATIOS & MARKET TESTS
Total questions: 10
Worksheet time: 9mins
How do you calculate Gross Profit?
Sales - NP
Sales - COGS
COGS - Expenses
COGS - NP
The gross profit ratio is calculated by dividing:
Profit by sales
Profit by shareholders’ equity
Gross profit by sales
Sales by cost of sales
Net income available to stockholders is $125,000 and total assets are $1,096,000 then return on assets would be…
0.11%
8.77%
0.12 times
12%
Net income available to stockholders is $150,000 and begining total stockholders equity total was $ 980,000 and ending stockholders equity is 1,120,000 then return on common stockholders equity would be..
7%
14%
0.05 times
7.15 times
Two profitability ratios are:
Return on Assets (ROA)
Quick Ratio
Return on Equity (ROE)
Debt to Equity
What is the formula to calculate Return on Assets?
Net Income / Total Assets
Gross Profit / Total Assets
Net Income / Shareholders' Equity
Gross Profit / Shareholders' Equity
If a company's Gross Profit is $500,000 and Sales is $1,250,000, what is the Gross Profit Margin?
40%
60%
20%
30%
If a company's Net Income is $200,000 and Total Assets are $1,000,000, what is the Return on Assets?
20%
25%
15%
10%
Calculate the Gross Profit Margin if Sales are $800,000 and Gross Profit is $200,000.
25%
20%
30%
15%
