Discussion

Topic 3 DQ 1

What are the benefits of ratio analysis? What are the limitations of ratio analysis? What can be done to minimize the limitations on ratio analysis? Explain. Cite any references used. Participate in follow-up discussion by reviewing your classmates' posts, adding additional information, asking questions, or responding to follow-up questions posed by your instructor.

Topic 3 DQ 2

You have computed all of the liquidity ratios for a company, and each of them appears to be close to or better than the industry average. What other information would you want before you made a final assessment of the company's short-term debt paying ability? Cite any references used. Participate in follow-up discussion by reviewing your classmates' posts, adding additional information, asking questions, or responding to follow-up questions posed by your instructor.