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Financial Ratios

More with financial ratios. Need to answer only 3 questions of your choice.
Please see attached file for full problem description.

a. Is it becoming easier for the company to pay its bills as they come due?
b. Are customers paying their accounts at least as fast now as they were in Year I?
c. Is the total of accounts receivable increasing, decreasing, or remaining constant?
d. Is the level of inventory increasing, decreasing, or remaining constant?
e. Is the market price of the company's stock going up or down?
f. Is the earnings per share increasing or decreasing?
g. Is the price-earning ratio going up or down?
h. Is the company employing financial leverage to the advantage of its common stockholders?

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a. Is it becoming easier for the company to pay its bills as they come due?
No
For this we will analyze the:
Quick ratio which indicates the liquidity of the organization.
THis is declining (from 1.1 in year1 to .8 to year 3) thus the company will have difficulty in paying.

b. Are customers paying their ...

Solution Summary

More with financial ratios. Need to answer only 3 questions of your choice.

$2.19