finance 335 chapter 3:

statement which presents all items in percentage terms is called

common size statement

which of the following will increase profit margin:

decreasing the tax rate

percentage of a firms net income that is distributed to shareholders is called:

dividend payout ratio

ratios which analyze a firms ability to meet its long term obligations are called:

leverage ratios

short term solvency ratios are also referred to as :

liquidity measures

if a manager notices that the firms receivables turnover ratio is declining her or she should assume:

on average it is taking customers longer to pay for their purchases

relationship between a firms earnings and the multiple of those earnings which investors are willing to pay to purchase one share of stock is called:

price earnings ratio

ratio related to the amount of profit a firm earns for every 1 dollar in sales is called

profit margin

which of the following transaction will increase liquidity of a firm:

selling inventory on credit

us government coding system that classifies firms by their specific type of business operation is

standard industrial classification system