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How would each of the following factors affect ratio analysis? A. The firms sales are highly seasonal. B. The firm uses some type of window
How would each of the following factors affect ratio analysis?
A. The firms sales are highly seasonal.
B. The firm uses some type of window dressing.
C. The firm issues more debt and uses the proceeds to repurchase stock.
D. The firm leases more of its fixed assets than most firms in its industry.
E. In an effort to stimulate sales, the firm eases its credit policy by offering 60-day credit terms rather than the current 30-day terms.
F. How might one use sensitivity analysis to help quantify the answers?
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