Business Finance Final Exam 1 And All Correct Answers.

Business Finance Final Exam 1 And All
Correct Answers.
Net Working Capital - Answer Current assets - current liabilities



▲Net Capital Spending - Answer Ending fixed assets - beginning fixed assets + depreciation



▲ NWC - Answer Ending NWC - Beginning NWC



Income Statement - Answer +Revenue/Sales

-Cost of Goods Sold (Royalties)

-Depreciation

=EBIT (Earnings before Interest & Taxes)

-Interest

-Taxes

=Net Income



EBIT - Answer Sales - Cost of Goods Sold - Depreciation



Operating Cash Flow (OCF) - Answer EBIT + Depreciation - Taxes



Cash Flow from Assets (CFFA) - Answer OCF - ▲NCS - ▲NWC



Average Tax Rate - Answer (Total Taxes Paid)/(Total Taxable Income)



Current Ratio - Answer Current Assets/Current Liabilities



Quick Ratio - Answer (Current Assets - Inventory)/Current Liabilities

, Cash Ratio - Answer Cash/Current Liabilities



Total Debt Ratio - Answer (Total Assets - Total Equity)/Total Assets



Debt/Equity Ratio - Answer Total Debt/Total Equity



Equity Multiplier - Answer Total Assets/Total Equity



Times Interest Earned - Answer EBIT/Interest



Cash Coverage Ratio - Answer (EBIT + Depreciation)/ Interest



Inventory Turnover - Answer Cost of Goods Sold/Inventory



Days' Sales in Inventory - Answer 365/Inventory Turnover



Receivables Turnover - Answer Sales/Accounts Receivables



Days' Sales in Receivables - Answer 365/Receivables Turnover



Total Assets Turnover - Answer Sales/Total Assets



Profit Margin - Answer Net Income/Sales



Return on Assets (ROA) - Answer Net Income/Total Assets



Return on Equity (ROE) - Answer Net Income/Total Equity