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Evaluating Financial Performance - R&E Supplies

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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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 ...

Solution Summary

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.

$2.19