What account in SCI is the base or the 100% when using vertical analysis?

Formula of Percentage of Change

The amount of total current assets minus total current liabilities

Net Income after income taxes / Net Sales is the formula of Profit Margin

Ratio of gross profit to net sales is the relationship between gross profit and net sales

Formula of Asset Turnover

The formula of current ratio is  current liabilities / current assets.

Acid Test Ratio is also known as Quick Ratio.

Match the following ratio based on the type of financial ratios:

Is simply the relationship between two amounts in the financial statements.

Measures short-term ability of the company to pay its maturing obligations and to meet unexpected needs for cash

Measures the company’s long-run financial viability and ability to meet long-term obligations.

Measures the company’s ability to use its assets efficiently to produce profits and positive cash flows.

The formula of inventory turnover is net sales / average inventory.

Match the following accounts