Evaluating Financial Performance - R&E Supplies
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Attached financial statements over the period 2002-2005 for R&E Supplies, Inc.
A. Use these statements to calculate as many of the ratios in Table 2.2 as possible.
B. What insights do these ratios provide about R&E's financial performance? What problems, if any, does the company appear to have?
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This solution is comprised of a detailed explanation to use these statements to calculate as many of the ratios in Table 2.2 as possible and answer what insights do these ratios provide about R&E's financial performance and what problems, if any, does the company appear to have.
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A. Use these statements to calculate as many of the ratios in Table 2.2 as possible.
B. What insights do these ratios provide about R&E's financial performance? What problems, if any, does the company appear to have?
First, we can see that the ability of R&E to pay short term liabilities is lower from both current ratio and acid test ratio.
The current ratio has reduced from 2.8 in 2002 to 1.7 in ...
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