# Shared Flashcard Set

## Details

Ratio Analysis
Ratio Analysis Flash Cards
8
Accounting
11th Grade
08/18/2010

## Cards Return to Set Details

Term
 When the Mark-Up % declines so does the     [image]
Definition
 Gross Profit %         [image]
Term
 When the Gross Profit % goes down   what else usually goes down     [image]
Definition
 The Mark Up % - you are a star!!!       [image]     I am going to throw my toys out of the cot!
Term
 If Tamati Toys has a mark up of 100% - what does this tell us?   [image]
Definition
 Tamati Toys adds 100% to the cost of the product to get the selling price.  Thus if the cost was \$1.50 then the selling price would be \$3.00, ie the selling price is double the cost price.       [image]
Term
 [image]   If Scrooge McDuck tells you his  Gross Profit % is 40% - how much gross profit is he making on each dollar of Sales?
Definition
 Scrooge McDuck is making     [image]   40 cents gross profit in every dollar of sales that he earns.  This is before all the other operating expenses are deducted and other income is added.
Term
 If Jessica's Chocolat has a Gross Profit % of 60% what does this tell us?   [image]
Definition
 That for every \$1 of sales that Jessica's Chocolat makes, 60 cents of that \$1.00 is the Gross Profit.   [image]
Term
 [image]   What are the profitability percentages?
Definition
 The ... 1.  Mark Up % 2.  The Gross Profit % 3.  Expense % to Sales 4.  Net Profit %     [image]
Term
 What is Working Capital?
Definition
 Current Assets - Current Liabilities
Term
 What are the two measures of Liquidity?
Definition
 The Current Ratio   Current Assets Current Liabilities
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