Name: 
 

Chapter 9: The Power of Numbers



Short Answer
 

 1. 

A business has total sales of $150. Its total cost of goods sold is $75. Its net profit is $50. Calculate its profit margin.
 

 2. 

Briefly, explain the differences between assets, liabilities and equity
 

 3. 

To find out how much money you will need, you will have to calculate your start-up expenses by completing an application of funds table. Briefly describe the four basic elements of the application of funds table.
 

 4. 

Briefly describe the four key balance sheet ratios.
 

 5. 

Your break-even analysis from your income statement shows that as of this month, your business is profitable. You cannot, however, pay all of your bills because of a lack of cash. Is your break-even analysis wrong? What might be the problem?
 



 
Check Your Work     Reset Help