Your response should be at least 250 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations

1) Define the main categories of ratios used in analysis and provide one example of each (with the equation).

2) Explain free cash flow and its importance to a business.

3) Explain the weaknesses of ratio analysis.

4) You are given the following selected financial information for The Blatz Corporation.

Income Statement Balance Sheet

COGS $750 Cash $250

Net Income $160 Net fixed assets $850

Ratios ROS 10% Current ratio 2.3 Inventory Turnover 6.0 x ACP 45 days Debt ratio 49.12%

Calculate accounts receivable, inventory, current assets, current liabilities, debt, equity, ROA, and ROE