
(1)
Introduction:
Liquidity or short-term ratios determines the ability of a firm to pay its current obligations. A good liquidity ration states that the company has liquid assets which can be easily convertible into cash. It includes
To calculate:
Current ratio.
(2)
Introduction:
Common size income statements help to express each financial statement line item as a percentage of the base year.
To express:
Income-statement in form of common-size percent’s.
(3)
Introduction:
Trend analysis helps in calculating trend percent for data across the period that show patters.
To calculate:
Balance sheets trend percent’s.
(4)
Introduction:
Liquidity or short-term ratios determines the ability of a firm to pay its current obligations. A good liquidity ration states that the company has liquid assets which can be easily convertible into cash. It includes current ratio, quick ratio etc.
To comment:
On the significant relations revealed by the ratios and percent computed.

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Chapter 13 Solutions
Managerial Accounting
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