4. Deale Corporation and Winkler Company are in different industries. Deale's current ratio is 1.89, while Winkler's current ratio is 1.65. Therefore, is it safe to conclude that Deale's liquidity position is better than that of Winkler?
5. Chastain Company's current ratio for 2015 was 1.42, which was slightly above the current ratio for similar companies in its industry. Chastain's quick ratio for 2015 was 0.68, which is substantially lower than for similar companies in its industry. What conclusion would you reach based on this information?
6. Singleton Company is seeking a short-term loan from its local bank. The banker needs assurance that the company will be able to repay the loan. Describe three financial ratios the banker should consider including in the loan approval process. What information does each of your selected ratios provide?
7. For Perrone Corporation, return on equity is substantially higher than return on investment. What does that tell you about the company?
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here