Selecting Appropriate Ratios Knight Owl Janitorial Services Company provides short-term cleaning and janitorial help for commercial buildings in downtown Lake Wobehere, Minnesota. Knight Owl Janitorial Services is owned by Marcy and Ken Knight who run the business from Marcy’s home. Because demand fluctuates considerably from week to week and they have no place to store equipment or cleaning products, the company owns very little cleaning equipment or cleaning supplies. It rents most of the cleaning equipment it uses and purchases cleaning products a day or two in advance. Employees are hired on an hourly basis for each job. The owners do not receive salaries. Instead, they distribute money for living expenses as dividends on a monthly basis.

Indicate which of the following ratios would be useful in evaluating the financial position and operating results of Knight Owl Janitorial Services and which would not. Explain your reasoning for those that are not considered useful.