Business

• Discuss the best way to leverage a breakeven analysis when defining a business strategy.
• Analyze the 12 financial ratios mentioned in the textbook and determine which is the most useful to the greatest number of small businesses. Explain your rational

CURRENT RATIO

QUICK RATIO

DEBT RATIO

DEBT TO NET WORTH RATIO

TIMES INTEREST EARNED

AVERAGE INVENTORY TURNOVER RATIO

AVERAGE COLLECTION PERIOD RATIO

AVERAGE PAYABLE PERIOD RATIO

NET SALE TO TOTAL ASSETS RATIO

NET PROFIT ON SALES RATIO

NET PROFIT TO ASSETS RATIO

NET PROFIT TO EQUITY RATIO

• Analyze the steps involved in preparing a cash budget and determine which steps presents the greatest number of obstacles to the greatest number of small businesses. Explain your rationale.

INVENTORY

CASH SALE

ACCOUNT RECEIVABLE

CASH

ACCOUNT PAYABLE

PRODUCTION/CASH PURCHASE

INVENTORY

• Analyze the steps involved in avoiding a cash crunch and make at least one additional recommendation for doing so. Provide specific examples to support your response

BARTER

TRIM OVERHEAD COSTS (LEASE INSTEAD OF BUY}