Question
You are investigating your companys growth trends. According to your analysis, your company's total asset amount has continuously grown during the past several years. You
You are investigating your companys growth trends. According to your analysis, your company's total asset amount has continuously grown during the past several years. You also have found that the portion (%) of the long-term debt has grown faster during the same period than that of the equity did. Currently, your company's long-term debt takes close to 45% of the total assets.
Q. Which of the following is the most appropriate nature of the information you are looking for in the above analysis?
A. Liquidity analysis
B. Operating result (or efficiency)
C. Sources and/or uses of cash
D. Financial position of the company
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