Author Question: For each of the ratios in question number five, give the formula for the ration What will be an ... (Read 10 times)

nevelica · **on:** Sep 11, 2018

For each of the ratios in question number five, give the formula for the ration

What will be an ideal response?

Question 2

Set up a complete skeletal statement:
Cost of merchandise sold 108,430
Loss (1,800)
Loss (0.8)

What will be an ideal response?

Missbam101 · **Reply #1 on:** Sep 11, 2018

Answer to Question 1

1 . Operating ration
operation expenses
revenue
2 . Liquidity ratio
assets
liabilities
3 . Profitability ratio
net income
net

4 . Turnover ratio
net sales
average inventory

Answer to Question 2

Net sales 225,000 100.00
Cost of merchandise sold 108,430 48.19
Gross margin 116,570 51.81
Expenses 118,370 52.61
Loss (1,800) (0.80)