The following categories of ratios are used in financial statement analysis:
a. Liquidity
b. Operating efficiency (also referred to as Activity)
c. Leverage
d. Profitability
e. Market measures
Classify the following ratios according to the above categories:
(1) Dividend payout
(2) Fixed charge coverage
(3) Cash flow margin
(4) Days inventory held
(5) Times interest earned
(6) Net profit margin
(7) Earnings per share
(8) Fixed asset turnover
(9) Total asset turnover
(10) Current ratio
Question 2
The source of the amounts used to complete the W-2 forms is the payroll register.
Indicate whether the statement is true or false