# AEB FINANCIAL

 The current ratio is the ratio of __ to __. CA to CL 1) If net cash provided or used by operating, financing and investing activities are added together, the result is the _____. Change in cash ______ (also can be ______) is added to net income to determine CFO. DepreciationorAmortization The amount of leverage used by the firm is determined by management decision with regard to the ______ problem. capital structure Three potential financial statement users are: creditors,investors and management. Stockholders’ return is measured by the____ while management efficiency is measured by _____. ROEROA ______ is an example of a coverage ratio. Times interest earned On the statement of cash flows the repayment of debt principal would be classified as a _____account. financing In the summary analysis (common-size) of the statement of cash flows from operations (if positive) shows the cash inflows as a percentage of total_____. inflows Calculating cash flows from operating activities by subtracting cash paid to suppliers, employees, & other cash expenditures from cash collected from customers. Direct Method On the statement of cash flows the repayment of the current portion of long term debt would be classified as a ____________ activity Financing Calculating cash flows from operating activities by adjusting net income for deferrals, accruals, and other non expenses. Indirect method Current assets minus current liabilities. Net working capital The Free Cash Flow for a firm is CFO minus ______ capital expenditure Debt to asset ratio (market values) greater than 100%. Insolvent firm The E in the P/E ratio is found by dividing _______ by ______ Net income# shares outstanding The change in retained earnings is often the product of both an______ and _____ activity. OperatingFinancing The four categroies of financial ratios discussed in class were: Liquidity, Activity, Profitability, Leverage Current Ratio= CA --------- CL Quick ratio, or acid-test ratio = CA - Inventory ---------------- CL Accounts Receivable Turnover = Net sales ------------------ Net Accts Receivable Inventory Turnover = COGS ------------ Inv Total Asset Turnover = Net Sales ------------------- Total Assets Debt to Asset ratio = TL --------- TA Debt to Equity ratio = Total Liab -------------- Stockholders' equity.... (CA-CL) Gross Profit Margin = Gross Profit ...(net sales-COGS) ----------------------------------- Net sales Op Profit Margin = Op profit ....(Net earnings) -------------------------- Net sales Net Profit Margin = Net earnings ---------------------- Net sales ROA, or ROI Net earnings -------------------- Total Assets ROE Net earnings ------------------ Stockholders' equity... (ca-cl) Earnings per Common Share = Net earnings --------------- Ave Shares Outstanding P/E ratio = market price of common stock ------------------------------------ earnings per share of stock Authorbkheath ID80616 Card SetAEB FINANCIAL DescriptionAEB FINANCIAL Updated2011-04-19T14:25:10Z Show Answers