As the CPA for Bonita Inc., you have been asked to develop some key ratios from the

Question:

As the CPA for Bonita Inc., you have been asked to develop some key ratios from the comparative This information is to be used to convince creditors that the company is solvent and will continue as a going concern. The data requested and the computations developed from the follow.

Instructions
With the class divided into groups, complete the following.
Bonita Inc. asks you to prepare a list of brief comments stating how each of these items supports the solvency and going-concern potential of the business. The company wishes to use these comments to support its presentation of data to its creditors. You are to prepare the comments as requested, giving the implications and the limitations of each item separately. Then prepare a collective inference that may be drawn from the individual items about Bonita€™s solvency and going-concernpotential.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Solvency
Solvency means the ability of a business to fulfill its non-current financial liabilities. Often you have heard that the company X went insolvent, this means that the company X is no longer able to settle its noncurrent financial...