Percentage of net income to net sales

Question

Match the appropriate letter for the key term or concept to each definition provided (items 1-10).

a. Ratio	j. Turnover
b. Trend analysis	k. Return on equity
c. Rate of return	l. Working capital
d. Interest	m. Liquidity
e. Principal	n. Current ratio
f. Risk	o. Acid-test ratio
g. Return on investment	p. Credit risk
h. DuPont model	q. Collect on delivery
i. Margin

1. The percentage of net income to net sales.
2. The amount of money invested or borrowed.
3. The difference between current assets and current liabilities.
4. The percentage of net income divided by average owners' equity for the fiscal period in which the net income was earned.
5. An indication of a firm's ability to meet its current financial obligations.
6. The quotient of sales divided by the average assets for the year or some other fiscal period.
7. Evaluation of data patterns over time.
8. The income or expense from investing or borrowing money.
9. A calculation of return on investment made by multiplying margin by turnover.
10. The ratio of the sum of cash (including temporary cash investments) and accounts receivable to current liabilities.