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Item Name Formula Company Data Used Answer 1. Current Ratio Current Assets / Current Liabilities 2. Acid Test or Quick Ratio Cash + AR +
Item Name | Formula | Company Data Used | Answer | ||
1. Current Ratio | Current Assets / Current Liabilities | ||||
2. Acid Test or Quick Ratio | Cash + AR + Short Term Investments / Current Liabilities | ||||
3. Profit Margin | Net Income / Net Sales | ||||
4. Return on Assets | Net Income / Average Total Assets | ||||
5. Debt-to-Total-Assets Ratio | Total Liabilities / Total Assets | ||||
6. Debt-to-Equity Ratio | Total Liabilities / Total Equity | ||||
7. Negative Net Income (Net Loss)? | (Yes/No) | ||||
8. Negative Retained Earnings? | (Yes/No) | ||||
9. Audit report: Who were the auditors? | (Yes/No) | ||||
10. Audit report: What was the audit opinion? | (Yes/No) | ||||
11. Audit report: Was there a going concern issue? | (Yes/No) | ||||
12. Audit report: Any other serious issues? | If yes, list the other concerns auditors had about the company's financial statements | (Yes/No) |
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