Similar to the Tables/Exhibits in Chapter 14 of the book, lets assume that you conducted ratio analyses (and presented same to him) on the companys financial statement, and you arrived at the following numbers: Current Ratio of 2.0; Days Cash on Hand (78.1); Days in Account Receivable (72.0 days); Total Asset Turnover (0.37); Interest Coverage (7.0); Long-term Debt to Net Assets ($2.71); Total Margin (10%); and Return on Assets of (2%). However, when you presented the above numbers to your CFO, he wanted you to answer the following and discuss the same with your team members: Evaluate why we use ratios to analyze the financial statements of organizations. Discuss the interpretation and implication of those numbers.

Please provide guidance for question #1 with the data above:

1. Discuss the interpretation and implication of those numbers.