For the highlighted in yellow portions what are the Excel formulaes used to calculate ratios? Net salesCost of goods soldGross marginOperating expensesNet incomeCashAccounts receivable, netMerchandise inventoryPlant assets, netTotal assetsCurrent liabilitiesLong-term liabilitiesCommon stockRetained earningsTotal liabilities and equityLiquidity and EfficiencyCurrent ratioAcid-test ratioAccounts receivable turnoverInventory turnoverTotal asset turnoverSolvencyDebt ratioEquity ratioSum of Debt and Equity ratiosDebt-to-equity ratioProfitabilityProfit margin ratioGross margin ratioReturn on total assets.Comparative Income StatementsFor Years Ended December 31, 2026-20232026$206,000121,00085,00045,000$40,000$36,000190,00060,000125,000$411,000David King CompanyComparative Balance SheetsFor Years Ended December 31, 2026-20232026$153,00058,00030,000170,000$411,000202620262025$184,000108,00076,000202640,000$36,0002025$158,00052,00017,000170,000$397,000$32,000220,00060,00085,000$397,000202520252024$160,00092,00068,00036,000$32,00020252024$129,00045,00023,000140,000$337,000$28,000200,00060,00049,000$337,0002024202420242023$114,00078,00036,00019,000$17,0002023$156,00032,00012,000140,000$340,000$23,000240,00060,00017,000$340,000

1. Current ratio: The current ratio estimates a firm's capacity of paying short-term or current…

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Business

Accounting

For the highlighted in yellow portions what are the Excel formulaes used to calculate ratios?

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 5SEQ

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Question

100%

For the highlighted in yellow portions what are the Excel formulaes used to calculate ratios?

Net sales
Cost of goods sold
Gross margin
Operating expenses
Net income
Cash
Accounts receivable, net
Merchandise inventory
Plant assets, net
Total assets
Current liabilities
Long-term liabilities
Common stock
Retained earnings
Total liabilities and equity
Liquidity and Efficiency
Current ratio
Acid-test ratio
Accounts receivable turnover
Inventory turnover
Total asset turnover
Solvency
Debt ratio
Equity ratio
Sum of Debt and Equity ratios
Debt-to-equity ratio
Profitability
Profit margin ratio
Gross margin ratio
Return on total assets.
Comparative Income Statements
For Years Ended December 31, 2026-2023
2026
$206,000
121,000
85,000
45,000
$40,000
$36,000
190,000
60,000
125,000
$411,000
David King Company
Comparative Balance Sheets
For Years Ended December 31, 2026-2023
2026
$153,000
58,000
30,000
170,000
$411,000
2026
2026
2025
$184,000
108,000
76,000
2026
40,000
$36,000
2025
$158,000
52,000
17,000
170,000
$397,000
$32,000
220,000
60,000
85,000
$397,000
2025
2025
2024
$160,000
92,000
68,000
36,000
$32,000
2025
2024
$129,000
45,000
23,000
140,000
$337,000
$28,000
200,000
60,000
49,000
$337,000
2024
2024
2024
2023
$114,000
78,000
36,000
19,000
$17,000
2023
$156,000
32,000
12,000
140,000
$340,000
$23,000
240,000
60,000
17,000
$340,000

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Step 2 Calculation of Liquidity and efficiency ratios

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Step 3 Calculation of Solvency ratios

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Step 4 Calculation of profitability ratios

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What are the Microsoft Excel formulaues used to input these? Is there a way to show each formula for how you came up with these. Not just the ratios but what you would input into excel that would automatically calculate the correct answers?

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