bus math qrb 501 wk4 qu-1

Business Math, Ch. 21

Financial Ratios

Table 21-1 on page 749 of your Business Math textbook.  This table shows the formulas for the financial ratios we will be using this week and next week.  Your team project next week will require the calculation of several of these ratios as well as their interpretation.  

For instance, why would an acid ratio test result less than one indicate that cash flow could be a problem?  Please explain using words and not numerical examples.