1) Explain some problems in financial statement analysis.
2) Explain the importance of the quick ratio and the PE ratio.
Long-Term Financial Planning and Growth
1) Explain some of the determinants of a firm’s growth.
2) Explain some of the problems in planning for growth.
Concepts Review and Critical Thinking Questions: # 3, 4:
3) Explain hat it means for a firm to have a current ratio equal to .50. Would the firm be better off if the current ration were 1.50? Explain your answer.
4) Briefly define each of the following selected financial ratios: quick ratio, total asset turnover, return on equity and price-earnings ratio
Chapter 4: Long-Term Financial Planning and Growth
1) Why do you think most long-term financial planning begins with sales forecasts? Put differently, why are future sales the key input?