questions 3&4 quick ratio DISCUSSION QUESTIONS 1. If we divide users of ratios into...
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Accounting
questions 3&4
quick ratio DISCUSSION QUESTIONS 1. If we divide users of ratios into short-term lenders, long-term lenders, and stockholders, which ratios would each group be most interested in, and for what reasons? (LO3-2) Explain how the Du Pont system of analysis breaks down return on assets. Also explain how it breaks down return on stockholders' equity. (LO3-3) If the accounts receivable turnover ratio is decreasing, what will be happening to the average collection period? (LO3-2) What advantage does the fixed charge coverage ratio offer over simply using times interest earned? (LO3-2) 2. 3. 4
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