Questions/Business/ManagementInvestors and Creditors or Financial Statement Ratios
Question A Investors and creditors are typically not interested in the same thing. Investors are typically interested in whether a company is going to turn a profit over time, while a creditor is interested in short-term cash flow. Decide whether you are an investor or creditor. Choose two ratios for the type of external user you chose and discuss its importance in analyzing a company.
Question B When reviewing the financial statements of a company, there are many different ratios to choose from. Choose a ratio that looks at liquidity, solvency and profitability and discuss its importance.
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