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A Balance Sheet describes the financial position of a company at a point in time. Ratio analysis allows us to compare two very different
A Balance Sheet describes the financial position of a company at a point in time. Ratio analysis allows us to compare two very different companies on a common basis. INSURER NURSING HOME $3,945 $4,424 Current Assets $609 Long term Assets -0- $1,500 Fixed Assets $1,894 $9,869 Total Assets $2,503 $3,456 Current Liabilities $445 $4,295 Long term Liabilities $1,700 $7,751 Total Liabilities $2,145 $2,118 $9,869 Equity Liabilities +Equity $358 $2,503 Which of these is the stronger company and why? Cite at least 3 financial ratios to justify your answer. Your points are based on your choice of ratios, the calculation of the ratio, and your analysis of the strength based on the ratio.
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