Question 3: Matching Questions

Symptom	Description
Inability to pay interest. Liquidity crisis Low capacity utilisation. Falling demand for the product Longer period of credit period and Return on shareholders funds Inefficient collection of debtors. Large inventory accumulation in Inability to pay dues to financial	Finished Goods Turnover Ratio
	Average Collection Period Ratio and age of debtors schedule
	Current Ratio and Quick Ratio
	Debtors Turnover Ratio in the market.
	Return on Equity and Return on overdue debtors.
	Interest Coverage Ratio being much higher than the overall return on investment
	Inventory Turnover Ratio
	Debt Equity Ratio anticipation of price rise in future
	Fixed Assets Turnover institutions.