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I want to solve question 5 CU S SLON QUESTIONS 1. Describe the three ways in which a ratio can be expressed. 2. List and
I want to solve question 5
CU S SLON QUESTIONS 1. Describe the three ways in which a ratio can be expressed. 2. List and briefly discuss the four bases on which a ratio can be compared. 3. Which three groups are the main users of financial ratios? 4. What is the value in calculating a current ratio? Contrast how creditors and owners view this ratio. 5. Why can a hotel, motel, or restaurant usually operate with a current ratio considerably lower than other types of businesses, such as manufacturing companies? 6. Why is maintaining a current ratio that is too high not a good business practice? 7. Explain why the calculation of a credit card receivables average collection period is a meaningful statistic. 8. Define the term profitability. 9. Why is a high total asset to total liabilities ratio desired by creditors? 5. Why can a hotel, motel, or restaurant usually operate with a current rati considerably lower than other types of businesses, such as manufacturin companies Step by Step Solution
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