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Financial Statement & Analysis

Total questions: 6

Worksheet time: 4mins

Name
Class
Date
1.

Which of the following ratios measures a company's ability to meet its short-term obligations?

a)

Current Ratio

b)

Debt-to-Equity Ratio

c)

Gross Profit Margin

d)

Return on Equity

2.

Which of the following is considered a liquidity ratio?

a)

Current Ratio

b)

Debt Ratio

c)

Gross Profit Margin

d)

Return on Assets

3.

Given the following information, calculate the current ratio:

  • Current Assets: $150,000

  • Current Liabilities: $100,000

a)

1.2

b)

1.5

c)

1.8

d)

2.0

4.

A company has the following financial data:

  • Net Income: $50,000

  • Total Assets: $500,000

  • Calculate the Return on Assets (ROA).

a)

5%

b)

8%

c)
  • 10%

d)

12%

5.

Using the provided data, calculate the inventory turnover ratio:

  • Cost of Goods Sold: $400,000

  • Average Inventory: $100,000

a)

2 times

b)

3 times

c)

4 times

d)

5 times

6.

Calculate the debt-to-equity ratio using the following information:

  • Total Liabilities: $300,000

  • Total Equity: $700,000

a)

0.3

b)

0.5

c)

0.7

d)

1.0