Question: There are current ratio, quick ratio, debt to equity, Rate earned on stockholders equity, and Rate earned on total asset. 1. If you are a

There are current ratio, quick ratio, debt to equity, Rate earned on stockholders equity, and Rate earned on total asset.

1. If you are a potential stockholder, which ratio would you be most interested in to evaluate a corporation for investment purposes? Why?

2. If you are a new supplier, which ratio would you be most interested in to decide to sell your merchandise? Why? Assume your terms for payment are 2/10; net/30.

3. Assume you are a banker, and a corporation has met with you to borrow $100,000 and pay it back in three years. Which ratio would you be most interested in to decide to give them the loan? Why?

Please provide answer in detail.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!