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a. Give the implications and the limitations of each item separately and then the collective inuence that could be drawn from them about Arodex Company's

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a. Give the implications and the limitations of each item separately and then the collective inuence that could be drawn from them about Arodex Company's long-term debt position. b. What warnings should you offer Mr. Parks. about the limitations of ratio analysis for the purpoae stated here? P 7-6 Mr. Parks has asked you to advise him on the long-term debt-paying ability of Arodex Company. He provides you with the following ratios: 2011 2010 2009 Times interest earned 8.2 6.0 5.5 Debt ratio 40% 39% 40% Debt to tangible net worth 80% 81% 81%

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