Part One Questions (8 points) 1. Explain the difference between the financial statement operach and the valuation approach. Which approach is superior for making short-term financial decisionu? Wit (3 point 2 why it is difficult to determine the cost of capital to use in the short-term decision-making. (3 points) 3. What is your interpretation of a company's current ratio is less than one? (2 points) Part two: Exercises 227 points) Exercise 17 points) The balance sheet and income statements of the Home Company are presented as follows: Assets 2018 2019 Current 200 250 40 20 2018 2019 Liabilities and Owner's equity Current liabilities 50 70 Accounts payable 40 50 Operating accus 100 180 Notes payable 250 Total 550 Kong-term debit Owen 0 Comment 30 60 300 400 Total current 400 450 450 5 Total 50 1000 Soo 1.700 1.750 Totalt 1.700 1.750 Totallibilities town's ENG C Part One Questions (8 points) 1. Explain the difference between the financial statement operach and the valuation approach. Which approach is superior for making short-term financial decisionu? Wit (3 point 2 why it is difficult to determine the cost of capital to use in the short-term decision-making. (3 points) 3. What is your interpretation of a company's current ratio is less than one? (2 points) Part two: Exercises 227 points) Exercise 17 points) The balance sheet and income statements of the Home Company are presented as follows: Assets 2018 2019 Current 200 250 40 20 2018 2019 Liabilities and Owner's equity Current liabilities 50 70 Accounts payable 40 50 Operating accus 100 180 Notes payable 250 Total 550 Kong-term debit Owen 0 Comment 30 60 300 400 Total current 400 450 450 5 Total 50 1000 Soo 1.700 1.750 Totalt 1.700 1.750 Totallibilities town's ENG C