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    Financial budgets and ratios

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    1- Financial ratios are used to analyze the relationships between data elements found on the financial statement. Critically discuss the following ratios measure: Profitability ratios, Liquidity ratios, Debt Performance ratios, and Asset Management ratios.

    2- Financial budgets can be developed in different ways, depending on the needs of the organization. Discuss the difference between the following 3 types of budgets: Traditional budget, Flexible budget, and Zero-based budget.

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    Solution Preview

    Two question that i want some help with:
    1- Financial ratios are used to analyze the relationships between data elements found on the financial statement. Critically discuss the following ratios measure: Profitability ratios, Liquidity ratios, Debt Performance ratios, and Asset Management ratios.

    Ratios help us in understanding the performance of the organization. It is the relationship between two or more financial figures. For the profitability analysis one should analyze the net profit margin to understand overall efficiency. ROI is used to know about the utilization of the assets. Gross margin indicates the direct efficiency of the organization. For liquidity one should assess the current ratio. Current ratio= Current Assets/Current Liabilities & Quick Ratio= Quick Assets/Current Liabilities helps in judging the liquidity of the company. Current ratio helps in knowing about the short term liquidity of the ...

    Solution Summary

    Solution helps in discussing the financial budgets

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