Interpret Financial Statements
Series 7 · Flashcards · Application
SERIES 7 · FLASHCARDS
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QUESTION
Calculate the current ratio if current assets are
200
200
200
and current liabilities are
100
100
100
.
QUESTION
Calculate net profit margin if net income is
20
20
20
and sales are
100
100
100
.
QUESTION
Calculate debt-to-equity if total liabilities are
300
300
300
and equity is
150
150
150
.
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ANSWER
2.0
2.0
2.0
. The ratio shows liabilities are twice the equity, indicating moderate financial leverage.
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