L.R. Stanton is the chief executive officer of Hi-Tech Electronics. Stanton is an expert engineer but a novice in accounting.

Instructions Write a letter to L. R. Stanton that explains

(a) the three main types of ratios;

(b) examples of each, how they are calculated, and what they measure; and

(c) the bases for comparison in analyzing Hi-Tech’s financial statements.

ETHICS CASE