1. If you are a potential stockholder, which ratio would you be most

interested in to evaluate a corporation for investment purposes? Why?

2. If you are a new supplier, which ratio would you be most interested in to

decide to sell your merchandise? Why? Assume your terms for payment

are 2/10;net/30.

3. Assume you are a banker and a corporation has met with you to borrow

$100,000 and pay it back in three years. Which ratio would you be most

interested in to decide to give them the loan? Why?