Using the data in Table 7.1 and the definitions from Table 7.4, calculate the current ratio, quick ratio, and the debt ratio.

a. What information do these ratios provide?

b. If you were concerned about the result, what could be done to adjust these ratios?

c. In what ways could these ratios be negatively impacted?

d. When assessing the results of these ratios, what advice would you have for this organization if it was considering securing financing for a major capital expense?

AppendixLO1