Activity/Turnover Ratio

Cost of goods sold is ___________

• Opening inventory +Purchases + Direct Expenses - Closing Stock

• Gross Profit - Net sales

• Opening inventory +Purchases - Direct Expenses - Closing Stock

• Net Sales - cost of good sold

Gross Profit = ____________

• Net sales - Gross profit

• Net sales -- COGS (Cost of Goods Sold)

• Net sales + COGS(Cost of Goods Sold)

Salary is a_________

• Indirect Expense

• Direct Expense

_________ ratios are a measure of the speed with which various accounts are converted into revenue from operations or cash:

• Solvency

• Activity

• Liquidity

The ___________ measures the activity of a firm’s inventory.

• Inventory Turnover

• Liquid Ratio

• Current Ratio