Question: QUESTION 4: A. In learning about ratios, we could simply study the different types or categories of ratios, or we could use ratios to answer

QUESTION 4: A. In learning about ratios, we could simply study the different types or categories of ratios, or we could use ratios to answer some important questions about a firm's operations. We prefer the latter approach and have chosen the following four questions as a map in using financial ratios: 1. How liquid is the firm? 2. Is management generating adequate operating profits on the firm's assets? 3. How is the firm financing its assets? 4. Are the owners (stockholders) receiving an adequate return on their investment?

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