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    Liquidity, asset utilization, long-term solvency ratios

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    Using the attached case, answer the following questions:

    1. How does Quickfix's average compound growth rate in sales compare with its earnings growth rate over the past five years?

    2. Which statements should Juan refer to and which one's should he construct so as to develop a fair assessment of the firm's financial condition? Explain why.

    3. What calculations should Juan do in order to get a good grasp of what is going on with Quickfix's performance?

    4. Juan knows that he should compare Quickfix's condition with an appropriate benchmark. How should he go about obtaining the nesessary comparison data?

    5. besides comparison with the benchmark, what other types of analyses could Juan perform to comprehensively analyze the firm's condition? Perform the suggested analyses and comment on your findings.

    6. Comment of Quickfix's liquidity, asset utilization, long-term solvency, and profitability ratios. What areguments would have to be made to convince the bank that they should grant Quickfix the loan?

    7. If you were the commercial loan officer and were approached by Andre for a short-term loan of $25,000, what would your decision be? Why?

    8. What recommendations should Juan make for improvement, if any?

    9. What kinds of problems do you think Juan would have to cope with when doing a comprehensive financial statement analysis of Quickfix Auto Parts? What are the limitations of financial statement analysis in general?

    © BrainMass Inc. brainmass.com October 9, 2019, 5:51 pm ad1c9bdddf
    https://brainmass.com/business/benchmarking/liquidity-asset-utilization-long-term-solvency-ratios-70148

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    Solution Preview

    Using the attached case, answer the following questions:

    1. How does Quickfix's average compound growth rate in sales compare with its earnings growth rate over the past five years?

    2. Which statements should Juan refer to and which one's should he construct so as to develop a fair assessment of the firm's financial condition? Explain why.

    3. What ...

    Solution Summary

    This provides the steps to compute and interpret Quickfix's liquidity, asset utilization, long-term solvency, and profitability ratios

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