TEST DAY

Question 1

Total asset turnover

Answer 1

Net sales / avg. total assets

Question 2

Net profit margin

Answer 2

Net income / net sales

Question 3

Return on total assets

Answer 3

Net income (after tax) / 
Avg. total assets

Question 4

Debt to equity ratio

Answer 4

Total liabilities / common stockholders equity

Question 5

Debt to assets ratio

Answer 5

Total liabilities / total assets

Question 6

Working capital

Answer 6

Current assets MINUS current liabilities

Question 7

Current ratio

Answer 7

Current assets / current liabilities

Question 8

Quick ratio (acid test)

Answer 8

(Current assets - inventory)/

Current liabilities

Question 9

A/R turnover

Answer 9

Net credit sales/ avg. net receivables

Question 10

A/R turnover in days

Answer 10

Avg. net receivables/ (net credit sales / 365)

Question 11

Inventory turnover

Answer 11

COGS/ avg. inventory

Question 12

Ending ARO

Answer 12

Beg. ARO
+ PV of new ARO
+ accretion expense
- ARO settled

= ending asset retirement obligations