Disc 6 - Financial Statement Analysis

(1-2 paragraphs)

Calculate one ratio from each of the following groups:         

1. Ability to Pay Current Liabilities
o   Current Ratio
o   Cash Ratio

 ·         

2. Ability to Pay Long-Term Debt
o   Debt Ratio
o   Debt-to-Equity Ratio

·         

3. Profitability
o   Profit Margin Ratio
o   Rate of Return on Total Assets

What do these results tell you?

How will you use this information in planning and decision making?

Refer to the (attached) comparative financial statements to help you work through this discussion.