Comments and Summary

Based on your feview of work paper $5-1,$ list one or two ratos in each of the following categonies that you beleve increase the fik of potertal mistademert. Explain why you beleve the risk is increased and idently possible causes of a polertal

For examply, "Days of imentory on Hand" increased signtcanty indcating mevchandse is held in inventory for a boger period than prior ywast and if is abs hed for a longer pevod than the industy average. This incresses the rist of

SHORT$-$TERM LIQUIDITY RATIOS:

Erler your response here $($This ofl will expand afomacialy bis your resporse $-$ une ALT $*$ ENTER io begin a new ine$)$

MCTIVITY RATIOS:

PROFIINBILITY I PERFORMANCE RATIOS:

COVERNOE RATIOS:

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Assessment of Financial Position

Based on your revew of work paper S$-1,$ assers the clerts ablly to corthue as a going concern $(10$ say in business$)$ by responding to the flowing quentoss.

A Identify ratios and tuends, if any, that cause concern about the client's ability to continue as a going concern Enter your nesponse here $($This cel wll expand automatcally do ty your response $-$ use ALT ENTER io begin a new ine$)$