.Please complete the following questions. You may
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WILL PROVIDE BOOK TO VIEW TABLES WITH ACCESS CODE
1.
Using the data
in Table 8.1 and the definitions from Table 8.4, calculate the current ratio,
quick ratio, and the debt ratio.
Current ratio =
Quick ratio =
Debt ratio =
a. What information do these ratios provide?
b. If you were concerned about the result,
what could be done to adjust these ratios?
c. In what ways could these ratios be
negatively impacted?
d. When assessing the results of these ratios,
what advice would you have for this organization if it was considering securing
financing for a major capital expense?
2. Review the income statement provided in Table 8.2 and address the
following questions:
a. From your analysis, you understand that the net
margin for the organization has shown strong growth over the past year. What
factor/s is/are driving this improved performance?
b. What concerns do you have regarding current
financial performance of this organization?
c. As an executive leader within this organization,
what priority issues should this organization address?
d. Is your impression of the reported financial
performance generally favorable or unfavorable? Why?
2. Using the data in Table 8.1 and the
definitions from Table 8.4:
a)
calculate the days cash on hand.
b). What information does this financial ratio
provide?
c) . If you were concerned about the result,
what could be done to positively impact this ratio?
d). In what ways could this ratio be
negatively impacted?