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Details Title: Accounting 230 Description: Exam 3 Prep Total Flash Cards: 28 Created: 11/10/2006 00:53:59	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term Liquidity Ratios Definition Ability of the business to pay its bills as the come due Term Working Capital Definition Current Assests - Current Liabilities Term Current Ratio Definition Current Assets/Current Liabilities Term Current Cash Debt Coverage Ratio Definition Cash Provided by Operations/ Average Current Liabilities Term Inventory Turnover Ratio Definition Cost of Goods Sold/Average Inventory Term Days in Inventory Definition 365 Days/Inventory Turnover Ratio Term Receivables Turnover Ratio Definition Net Credit Sales/ Average Net Receivables Term Average Collection Period Definition 365 Days/Receivables Turnover Ratio Term Solvency Ratios Definition These ratios help determine whether a company can survive and thrive in a long-term scenario Term Debt to Total Assets Definition Total Liabilities/Total Assets Term Cash Debt Coverage Ratio Definition Cash Provided by Operations/ Average Total Liabilities Term Times Interest Earned Definition (Net Income+Interest Expense+Tax Expense)/ Interest Expense Term Free Cash Flow Definition Cash Provided by Operations-Capital Expenditures-Cash Dividends Term Earnings per Share Definition (Net Income-Preferred Stock Dividends)/ Average Shares of Common Stock Outstanding Term Price-Earning Ratio Definition Stock Price per Share/ Earnings per Share Term Gross Profit Rate Definition Gross Profit/Net Sales Term Profit Margin Ratio Definition Net Income/Net Sales Term Return on Total Assets Definition Net Income/Average Total Assets Term Asset Turnover Definition Net Sales/Average Total Assets Term Payout Ratio Definition Cash Dividends Declared for Common Stock/ Net Income Term Return on Common Stockholders' Equity Definition (Net Income-Preferred Dividends)/ Average Common Stockholders' Equity Term Net Realizable Value (NVR) Definition Accounts Receivable - Estimated Bad Debts Term Straight Line Depreciation Definition (Cost - Salvage)/Life in Years Term Units of Activity Depreciation Definition (Cost - Salvage)/Life in Units