Casey Cordell is the owner of a digital photography service in Madison, Wisconsin. The company has been profitable every year of its existence. Its debt ratio is currently 68 percent, its current ratio is 1:1, and its debt-to-equity ratio is 72.2 percent. Do these financial numbers cause any reason to be concerned? Why or why not?
Answer to relevant QuestionsWhat items on the left side (or top) and what items on the right side (or bottom) of a firm’s balance sheet should receive the greatest scrutiny? In regard to each of these items, what are the most important factors that a ...As evidenced in this chapter, a firm’s statement of cash flows is divided into three separate activities. Which of the activities from the statement of cash flows would be affected by a firm’s decision to use Fundbox’s ...How does a firm compute its profit margin? What is the significance of this ratio? What other techniques, not mentioned previously, can people who don’t have prior business experience utilize to compensate for their lack of experience? Currently, Ann Schafer is a sales representative for The Pampered Chef, a direct sales organization that sells kitchen utensils and related products. Ann, who lives near Houston, Texas, is thinking about leaving her current ...
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