
Introduction: The
The solvency ratios suggest the long-term solvency position of the business taking into consideration the capital structure in which the finances have been employed. The same is determined through the debt-equity ratio and times interest earned.
The profitability ratios suggest the earning capacity of the business in terms of profit margin based on sales revenue and return on total assets based on total assets of the business.
Change in ratios to favorable or unfavorable.

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Chapter 13 Solutions
FINANCIAL ACCT.FUND.(LOOSELEAF)
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- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College