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XACC 280 Week 7 Discussion Question 1 and 2

  1. Discussion Questions

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· Select three ratios, one from each category—liquidity, profitability, and solvency—you think are the most important.

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Why do you consider these ratios important? Which internal and external users might be most interested in these ratios? Explain why.

Respond to postings of your classmates who selected different ratios than those you selected. Comment on the significance of these ratios and which users might be most interested in them.

· Review Illustrations 15-17 through 15-24 on pp. 710–714 of Financial Accounting.

Given the data, would you have invested in Quality Department Store in 2006? Explain why or why not. Summarize your analysis of the financial data to support your reasoning. What recommendations would you make to improve the financial health of this company? Explain why.

Respond to your classmates’ postings, by agreeing or disagreeing with their assessments while pointing to the data and specific ratio, vertical, or horizontal analyses.

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