Solved by a verified expert :Week 3 discussion
DQ1
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.
DQ2
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 averages.
What other information would you want before you made a final assessment of the
company’s short-term debt paying ability?