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(a)
Financial statements: Financial statements are condensed summary of transactions, communicated to the users in the form of reports, for the purpose of decision making.
Debt to assets ratio: This financial ratio evaluates the ability of a company to pay off long-term debt obligations, owed to creditors. This ratio assesses the solvency of a company.
To compute: Overall decrease percentage in the amount of assets of Incorporation G from 2013 to 2017.
(b)
To mention: The changes in liquidity from 2013 to 2017 of Incorporation G from 2013 to 2017
To state: Whether working capital and current ratio are better measures of liquidity for Incorporation G
To indicate: The measures that explain the change in liquidity for Incorporation G
(c)
To mention: The changes in solvency from 2013 to 2017 of Incorporation G from 2013 to 2017
(d)
To mention: The changes in profitability from 2013 to 2017 of Incorporation G from 2013 to 2017, and discuss how this change could be used to predict the future profitability of Incorporation G
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Chapter 2 Solutions
Financial Accounting 8th Edition
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Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub