ACCT346 Financial Statement Analysis

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ACCT346 Financial Statement Analysis
Why do managers analyze financial statements? What are they looking for? List three types…

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ACCT346 Financial Statement Analysis

ACCT346 Financial Statement Analysis

Discussions Week 7 All Students Post 36 Pages

Why do managers analyze financial statements? What are they looking for? List three types of decisions that managers can make by analyzing financial statements.

A) What are the differences between the “current ratio” and the “acid-test ratio”? What do these ratios tell management?

B) Suppose net income is much higher than cash flows from operations. Why is this potentially indicative of earnings manipulation?…

problem #1
The Lance Company, provides various services.
Financial information concerning the most recent
year appears below:
Sales $12,000,000
Net operating income $3,300,000
Average operating assets $30,000,000
Ignore the impact of income taxes in your calculation…