Instructions:
Based on pages 899–907 in your textbook and assuming Daisy Consulting’s net income for the year was $70,850 and $0 interest expense, calculate one ratio from each of the following groups (three ratios total) for 2015 for the company:
•Ability to Pay Current Liabilities
◦Current Ratio
◦Cash Ratio
•Ability to Pay Long-Term Debt
◦Debt Ratio
◦Debt-to-Equity Ratio
•Profitability
◦Profit Margin Ratio
◦Rate of Return on Total Assets
What do these results tell you? How will you use this information in planning and decision making?
Refer to this comparative balance sheet to help you work through this discussion.
https://snhu-media.snhu.edu/files/course_repository/undergraduate/acc/acc201/acc_201_comparative_balance_sheet.png