Question: Ratio analysis expresses the proportional numerical relationships between figures reported in financial statements and are used to compare current period ratios to prior periods and

Ratio analysis expresses the proportional numerical relationships between figures reported in financial statements and are used to compare current period ratios to prior periods and industry averages.' Question 1 A. What are the FOUR (4) categories of ratios commonly used by businesses? (4 marks) B. List the users for each of the categories of ratios identified in 1 (A) above and explain the difference in what each user looks for in financial statements. (6 marks) C. Explain the main purpose for each of the FOUR (4) categories of ratios identified in 1 (A.) above. (8 marks) D. List the types of ratios for each of the categories of ratios identified in 1 (A) above and state the formula to calculate each ratio identified. (See prescribed text) (12 marks)

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