1. Calculate current ratio and acid test ratio for the firm. 2. Calculate DSO, fixed assets turnover,...
Question:
1. Calculate current ratio and acid test ratio for the firm.
2. Calculate DSO, fixed assets turnover, and total asset turnover for the firm.
3. Calculate liabilities-to-assets ratio and times-interest-earned ratio for the firm.
4. Calculate net profit margin and return on equity for the firm.
5. Evaluate the performance of the firm in the following areas: Liquidity management Asset management Debt management Profitability management When you explain the firm’s strength or weakness in each area, you must support your arguments through the evaluative reasoning process by providing reasons, methods, criteria, or assumptions behind the claims made.
6. Deductive reasoning starts with a general principle and deduces that it applies to a specific case. Deductive reasoning moves with exacting precision from the assumed truth of a set of premises to a conclusion which cannot be false if those premises are true. Explain the deductive reasoning process applied to analyze the firm’s performance.
Accounting What the Numbers Mean
ISBN: 978-0078025297
10th edition
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele