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match the ratio with the formula tion This test can be saved and resumed later.

ID: 2555864 • Letter: M

Question

match the ratio with the formula

tion This test can be saved and resumed later. mpletion Status: ON 1 he ratio with the formula Sales Average Working Capital Net Sales Arerage Gross Receivables A days' sales in receivables B accounts receivable tumoter C. accounts receivable tumover in davs D days sales in inventory E inventory turnover F inventory turnover in days Current Assets Current Liabilities Cash Equivalents Marketable Securities + Net Receivables Current Liabilities G operating cycle H. working capital l current ratio J. acid-test ratio K cash ratio L sales to tworking capital Gross Receivables Net Sales 365 Average Gross Receivables Net Sales 365 Average Inventor Cost of Goods Sold 365 Cash Equivalents Marketable Securities Current Liabilities Current Assets Current Liabilities Accounts Receivable Inventory Turnover Tumover in Days in Days Cost of Goods Sold Average Inventory E1 ? Inventor Cost of Goods Sold 365 Type here t

Explanation / Answer

1. Days sales in receivables = (Gross receivables / net sales ) * 365 days

2. Accounts receivables turnover = Net sales / Average gross receivables

3. Accounts receivables turnover in days = (Average gross receivables / net sales) *365days

4. Days sales in inventory = (Endind inventory / cost of goods sold) * 365 days

5. Inventory turnover = Cost of goods sold / Average inventory

6. Inventory turnover in days = (Average inventory / Cost of goods sold) * 365 days

7. Operating cycle = Accounts receivables turnover in days + inventory turnover in days

8. Working capital = Current assets - Current liabilities.

9. Current ratio = Current assets / Current liabilities

10. Acid test ratio = (Cash equivalents + Marketable securities + net receivables) / Current liabilities

11. Cash ratio = (Cash equivalents + marketable securities) / Current liabilities

12. Sales to working capital = Net sales / Average working capital.