DB week 14 & 15

  Accounting 3303 Hw. All in complete sentences. each ansewer should be at least 5 sentences 

1- Identify several key elements in the evaluation of solvency.

2- Why is analysis of a company’s capital structure important?

3- What is the difference between common-size analysis and capital structure ratio analysis? Explain how capital structure ratio analysis is useful to financial statement analysis.

4- What does the earnings to fixed charges ratio measure? What does this ratio add to the other tools of credit analysis?