Exam (elaborations)
RATIOS - FAR CPA EXAM QUESTIONS AND ANSWERS WITH SOLUTIONS 2024
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RATIOS - FAR CPA EXAM QUESTIONS AND ANSWERS WITH SOLUTIONS 2024
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RATIOS - FAR CPA EXAM QUESTIONSAND ANSWERS WITH SOLUTIONS 2024
Current Ratio - ANSWER Current Assets/Current Liabilities
Quick Ratio - ANSWER (Current Assets- Inventory)/ Liabilities
Accounts Receivable Turnover - ANSWER Sales (net)/Average Accounts Receivable (net)
Days Sales in Accounts Receivable - ANSWER Ending Accounts Receivable (net)/ (Net Sales/365)
Inventory Turnover - ANSWER Cost of Goods Sold/Average Inventory
Days in Inventory - ANSWER Ending Inventory/ (Cost of Goods Sold/365)
Accounts Payable Turnover - ANSWER Cost of Goods Sold / Average Accounts Payable
Days of Payables Outstanding - ANSWER Ending Accounts Payable/ (Cost of Goods Sold/365)
Cash Conversion Cycle - ANSWER Days Sales in Accounts Receivable + Days in Inventory - Day of Payables
Outstanding
Asset Turnover - ANSWER Net Sales/ Average total assets
Profit Margin - ANSWER Net Income/ Net Sales
Return on Assets - ANSWER Net Income/ Average Total Assets
DuPont Return on Assets - ANSWER Profit Margin x Asset Turnover
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