Instructions:

Use the income statement and balance sheet of E 5-12 to compute the ratios on the illustration 5A-1, Page 232, and analyze it and discuss each ratio whether managers, investors, debtors or other users prefer to have the ratio higher or lower.

Assuming that Scott Butler Corporation is incorporated in 2017 and Scott Butler has 100,000 outstanding shares.

ES-1a ROHI statement Cash The awartion fallows of land and building uanor bonds plant assets of activities mpor al Payment cash dividends Exchange faminare for 0d Loss on sale equipment. Increase in acoounts reoriable during the Deorease in accounts payable during the yelt Net cash prowded by oolrating activars Capital erpendues Cash dvidends ES-1a ROHI statement Cash The awartion fallows of land and building uanor bonds plant assets of activities mpor al Payment cash dividends Exchange faminare for 0d Loss on sale equipment. Increase in acoounts reoriable during the Deorease in accounts payable during the yelt Net cash prowded by oolrating activars Capital erpendues Cash dvidends