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Ratio analysis:Classification and uses.

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You have been given the financial statements and asked to analyze the financial performance of your division. Other managers have suggested you use financial ratios in your analysis.
1.What are financial ratios?
2.Which ratios might you use in your analysis?
3.List them and explain what information they provide.
4.How would you use them to make managerial decisions?

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Solution Summary

The solution contains detailed instructions pertaining the ratios used in financial analysis.

Solution provided by:
Chidi Ngene, M. Sc.
Education
  • B. Sc., University of Nigeria
  • M. Sc., London South Bank University
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